Increasing Adoption of Layer 1 Blockchains in DeFi Sector
Recent data from DeFiLlama indicates a growing adoption of layer 1 (L1) blockchains in the decentralized finance (defi) sector. One such L1 solution, Avalanche (AVAX), which is based on the Ethereum Virtual Machine (EVM), has seen a significant surge in trading activity. Avalanche’s trading volume has reached approximately $2.73 billion.
Avalanche’s Trading Volume Soars
Avalanche’s weekly trading volume has increased by 167% month-on-month, reaching its highest level since July 2022, according to DeFiLlama. This surge in trading volume has also led to an 88% increase in the price of AVAX over the past 30 days and a more modest 5.6% uptick in the last seven days. Currently, AVAX is trading at $22.34.
Growth in Transaction Volumes for Other L1 Chains
In addition to Avalanche, other layer 1 chains have also experienced significant growth in transaction volumes. Osmosis (OSMO) saw its transaction volume increase by 113% to $490 million. Solana (SOL), Sui (SUI), and THORChain (RUNE) also hit record highs.
Potential Shift in User Preference
This increasing adoption of L1 networks suggests a potential shift in user preference within the defi space. Traders and investors are constantly seeking faster and cheaper transaction fees, which may explain their growing interest in layer 1 solutions.
Hot Take: Layer 1 Blockchains Gain Traction as DeFi Users Seek Efficiency
The recent surge in trading volumes for layer 1 blockchains like Avalanche highlights the growing demand for faster and more cost-effective solutions in the decentralized finance sector. As users seek to optimize their transaction experiences, layer 1 networks offer the potential for improved efficiency and reduced fees. This trend indicates a shift in user preference towards L1 solutions and could have significant implications for the future of the defi space.
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