Avalanche C-Chain, the contract chain allowing the creation of Ethereum-compatible smart contracts on the Avalanche platform, saw a rollercoaster ride in transaction counts during Q1 2023. Analytics platform Nansen’s analysis of Avalanche’s Q1 data reveals a fluctuating transaction count, spiking to an all-time high of 290k on March 11. This wild ride poses questions about network stability, while at the same time offers insights into the gas price advantage over Ethereum.
The observed fluctuations are primarily attributed to activities by Trader Joe, USDC, and two unidentified bots. These bots recorded high activities during episodes of market panic, leading to questions about possible exploitative behavior. On one hand, this highlights the potential presence of malicious actors in the space, but on the other hand, it also sheds light on opportunities for savvy investors taking advantage of market panics.
A significant increase in the number of unique addresses transacting on Avalanche C-Chain led to daily active addresses experiencing spikes on March 10 and 11, when they reached over 120k. While the average gas paid generally followed a similar pattern to the daily transaction count, there was a notable anomaly: on January 1, the average gas paid exceeded 40,000, despite no significant increase in transaction count.
Despite its transaction count fluctuations, the Avalanche C-Chain boasted a gas price advantage over Ethereum in Q1 2023. Indeed, the highest gas price paid on Avalanche was $16 on March 11, while the lowest daily gas paid on Ethereum was $2.43 on January 8. With an average gas paid of between $0.07 to $0.32, Avalanche C-Chain significantly undercuts Ethereum’s gas prices, despite spikes in transactions for both chains on March 11.
According to Mega Septiandara, Research Analyst at Nansen, this demonstrates Avalanche’s growth potential as a strong contender in the world of smart contract platforms, stating that “Avalanche is undoubtedly poised for marked growth as it enters the second quarter.” The platform’s focus on driving innovation and powering adoption has subsequently attracted new users, as evidenced by the native token, AVAX, gaining 60% YTD.
The pros and cons in analyzing Avalanche C-Chain’s Q1 performance highlight the potential for marked growth but also emphasize the need for addressing the presence of malicious actors and network stability in the face of fluctuating transaction counts. While its competitive gas prices offer a clear advantage, the platform’s future success hinges on its ability to foster trust, innovation, and adoption among users.