A 🧵 on why $AVAX could explode:
Some massive developments happening on Avalanche right now :
1. Technical Analysis
2. Avalanche Multiverse Program & Subnets
3. Super Pruning
4. Bridging
1. Technical
Over the past months, AVAX has been one of the only chains which has shown strong resilience :
Avg Total Value Locked at ~15B(10% of ETH)
Avg TPS at ~ 850K (75% ETH)
Price action : Forming an ascending triangle with solid consolidation for ~3 months
2. Avalanche Multiverse
Avalanche Rush was the most successful incentive program in defi, with TVL increasing from $312M to ~$15B
They have launched an even bigger fund "Multiverse" worth ~400M right now, to incentivize growth of subnets
twitter.com/avalancheavax/status/1501217040752910336?s=20&t=vQU2DF92rmOWtLMUjtfa7g
Subnets
Avalanche acts as a Layer 0 (Atom/Dot) for a set of independent chains (subnets) with the same validator set as avalanche.
Subnets are actively developed by the Ava Labs team and theyare highly customizable and we will see 100s of types of subnets.
Subnets propose to be a hassle free way for protocols to run their own chains, with near 0 fees and instant finality. These subnets are Avalanche's plan to scale horizontally and infinitely
t.co/YhCldwI2oz
Each Subnet needs 100s of validators, they would incentivize people to run nodes. Each new validator locks 2000AVAX, which creates a scarcity that pushes the price up
Additionally, all subnet nodes have to be Avax nodes, this improves the security of the system.
The Multiverse incentives are providing rewards to users to use Subnets which can house 100s of Million users today and kick-starting a new leg for AVAX ecosystem.
These incentives would be used for 4 key fields :
1. Gaming
2. NFTs
3. Defi
4. Enterprise Chains
1. Gaming
Subnets have near 0 fees and instant finality which is perfect for games, thus AVAX has attracted the best Web3 games (@DefiKingdoms @PlayCrabada @penguin_defi)
Each of these games have more users and TVL than most blockchains.
shorturl.at/jtwCY
2. NFTs
AVAX has one of the best community in crypto but NFTs haven't taken off yet (<1% of ETH Volume), with the multiverse incentives for gaming and NFT marketplace, we could see a new wave of NFTs being built on AVAX which could create a thriving NFT ecosystem.
3. Defi
I predict the Multiverse incentives would focus on
a. cross-chain interoperability protocols - @AaveAave @wormholecrypto @StargateFinance
b. Liquidity drivers/dex -@CurveFinance @Platypusdefi @pangolindex
4. Enterprise Chain
Subnets can be created to be in compliance with local regulation (KYC/AML. This would help compliant defi products like @aaveaave arc and enterprises to build onchain protocols e.g. the recent partnership with Deloitte
shorturl.at/eDKU3
Super Pruning
The biggest limit to AVAX TPS is state growth (storing all txn in database), if this limit is increased the protocol would become unstable. However, with pruning only part of the state is stored and it solves the problem.
Pruning is done offline currently, due to which you lose out on staking rewards, so this process has to be done online.
This is the idea of 'Super Pruning' which we could see going live some time this year, pushing AVAX and all it's subnets to do 10x more TPS.
Bridging
The AVAX-ETH native bridge is one of the most popular and efficient bridge in crypto, we will see a similar AVAX-BTC bridge and probably more.
With native wallet 'core' bridging and using subnets seamless and instant.
cutt.ly/AD6C5T5
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