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Some applications, such as games and marketplaces, do not require large deposits, so the metric is irrelevant in those cases. To confirm whether the TVL increase in Avalanche is encouraging, traders should analyze DApp usage metrics. As a comparison, Ethereum’s TVL increased by 10% in Ether terms, while BNB Chain faced a 14% reduction in the same period. In terms of AVAX tokens, the network’s TVL has effectively grown by 35% in two months. Avalanche network total value locked, AVAX. This suggests that even as AVAX price crashed, investors did not withdraw tokens from its decentralized applications (DApps). Total value locked increased, but the number of users declinedĪvalanche’s primary decentralized application metric strengthened in the last 60 days as the network’s TVL jumped to 184 million AVAX tokens. In short, Avalanche looks heavily discounted considering how similar networks’ market capitalization vastly exceeds their respective TVL. If we use Polygon ( MATIC), an Ethereum layer-2 solution, as a proxy, the network holds a $1.8 billion TVL while the token's market capitalization stands at $3.5 billion. The TVL indicator is extremely relevant because it measures the deposits on the network’s smart contracts. Yet, SOL token’s market cap stands at $12.9 billion, which is almost three times larger than Avalanche’s valuation at the $14.80 price level. It’s important also to note that the network’s total value locked (TVL) holds an impressive $3.2 billion.Īs a comparison, Solana ( SOL) offers incredibly low network fees and holds a $2.1 billion TVL. The brutal sell-off on risk assets caused AVAX to test the $14.80 support multiple times, while the current market capitalization stands at $4.8 billion. Yet, the lackluster token price is still causing investors to rethink whether the network remains a “serious” competitor. Avalanche ( AVAX) is down 45% in 30 days and in the same time the cryptocurrencies total market capitalization shrank by 29%.ĭespite the recent downturn, this decentralized application (DApp) platform remains a top contender in the layer-1 and layer-2 race and it ranks high in terms of smart contract deposits and active addresses.