Daily Transactions On Avalanche Up By 85% In Q4 2022 – Messari
Per on-chain data, the native token of the Avalanche Network, AVAX, has experienced a remarkable increase in value since the start of 2023, indicating a promising start to the year.
AVAX Token Soared In January
Recently, Messari, a crypto analytical platform, released a report providing insight into the performance of the Avalanche network and its governance token, AVAX. The report shows that despite being linked to FTX and experiencing volatile price movements, the network, and its native token continues to expand.
According to the report, AVAX rose from $10.67 on January 1st to a 90-day all-time high of $21.68 on January 28th, a 103% increase. Additionally, the Messari report revealed that the Avalanche network recorded massive progress in Q4 2022.
Despite obstacles caused by the FTX collapse, data from the Primary Network and the seven Avalanche Subnets showed remarkable results. In Q4, the average daily active addresses rose to 48,023, a 3.2% rise from Q3.
Meanwhile, the average daily transactions were an astonishing 2,881,207, an 84.6% increase from Q3 2022. The number of transactions per second also increased significantly, from 18 in Q3 2022 to 33 in Q4 2022.
Additionally, the average transaction cost saw an even more remarkable result, dropping by 26.8%. The fee dropped from $0.14 in Q3 2022 to $0.10 in Q4 2022. Meanwhile, the Avalanche blockchain saw a rise in average daily transactions, ending the year with about 2.9 million transactions daily.
Avalanche’s P/S Ratio Increased To 846x In Q4
Furthermore, the network’s price-to-sales (P/S) ratio increased. As of Q1 2022, the price-to-sales ratio was 91x but jumped to 846x in the last quarter.
This indicates that the token and the network might be overvalued based on previous data. Meanwhile, traditional price-to-sales ratios may not necessarily be the most accurate method for assessing the value of blockchain assets.
A new and innovative solution, the Expected Demand for Security Model, has been launched. This model provides an alternative method for valuing these assets.
According to this model, the overall security demand, both future and present, determines a network’s value. Although AVAX boasts a remarkably high price-to-sales ratio, its fully diluted market capitalization has experienced a drastic decline.
At its peak in Q4 2022, the market capitalization reached a staggering $73.1 billion. However, it has since plummeted by 89.3% to a mere $7.8 billion in the same quarter of the following year.
Meanwhile, observing the evolution of this network’s future with its distinct approach to valuing blockchain assets will be intriguing.
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