Avalanche subnet Beam reaches 22K active users – Assessing ecosystem growth, AVAX demand

Key Takeaways

Should investors remain confident in Avalanche?

Steady on-chain activity and interest from institutional investors suggest Avalanche is doing the right things as an L1 blockchain.

What are subnets?

Avalanche subnets can be thought of as customizable mini-blockchains that operate within the broader Avalanche ecosystem.

Avalanche [AVAX] has been shedding value on the price charts since the start of October. Back then, the crypto was testing the $31.3 area as resistance. A breakout past this level would have shown bullish belief.

Instead, the token trended lower, and the 10/10 crash took the price to lows not seen since July. This heavily affected investor sentiment. However, it did not deter an agri-tech firm from announcing its decision to raise half a billion dollars for an AVAX digital asset treasury (DAT).

The “high-speed, institutional-grade blockchain” of Avalanche was one of the reasons it was chosen for the DAT. In fact, AMBCrypto’s examination of the network’s on-chain metrics showed sizeable activity levels and user counts.

AVAX demand backed by steady on-chain activity, reliable performance

The Avalanche Layer 1 blockchain is built on a base layer with three core blockchains. They are named the X-Chain (Exchange Chain), C-Chain (Contract Chain), and P-Chain (Platform Chain). It is the P-Chain that manages validators and coordinates the creation and operation of subnets.

Avalanche subnets are mini-blockchains within the ecosystem that provide scalability and customization. Businesses and developers can tailor subnets for specific applications, such as gaming or decentralized finance (DeFi).

Source: The Block

The most popular subnet right now, based on active addresses, is Beam [BEAMX]. It operates as an independent network with a gaming focus. The native currency of the network is BEAMX, used to pay for transactions on the network.

Lamine1 had been more popular based on the 7-day average of active addresses. The subnet reached just over 150k active addresses from May to September. It saw a drop in activity recently, putting Beam at the top.

Beam has since maintained active users around 22k since March, showing consistency but lacking growth.

Source: Avalanche

The Avalanche C-Chain, or Contract Chain, also had substantial on-chain activity. The active addresses numbered just over 294.7k on Sunday, 2 November. This number has grown from around 200k at the start of October. It peaked at 481k on 25 November.

The DAT enthusiasm and steady on-chain activity highlights why Avalanche holds value as a reliable L1. And, it could see increasing demand for AVAX in the coming months.