Weekly transactions jump 66% as decentralized trading takes the lead
The Avalanche blockchain has recorded a sharp increase in activity, driven largely by decentralized exchanges (DEXs), automated trading bots, and whale speculation on memecoins, according to recent analysis by Nansen.
In the past week, Avalanche’s transaction growth rose 66% to 11.9 million, with over 181,000 active addresses engaging on the network. This surge outpaced all other blockchains during the same period, signaling rising market attention on Avalanche.
Not just government adoption
Last week, Avalanche made headlines after the U.S. Department of Commerce announced it would use the blockchain — along with nine others — to publish official GDP data. However, analysts caution that the activity spike is not directly tied to this adoption.
Nansen research analyst Nicolai Sondergaard said:
“The transaction surge is driven by 60% DeFi protocol activity (Trader Joe, Aave, Benqi), 25% automated trading bots and MEV, and 10% whale trading and memecoin speculation. The remaining 5% comes from gaming and NFTs.”
This breakdown highlights how financial speculation and algorithmic trading remain the primary forces behind Avalanche’s rapid transaction growth.
DEX trading leads the way
Among decentralized finance platforms, Trader Joe DEX emerged as the top contributor, handling over $333 million in Wrapped Ether (WETH.e) trading volume in just seven days.
Other major drivers included:
- Aave lending protocol, recording $624,000 in flash loan activity through DEX aggregators.
- Benqi Protocol, which received $650,000 in deposits from trading bots.
Meanwhile, whale activity pushed liquidity into memecoins such as Black (BLACK), which saw $14 million in trading volume, with individual whale wallets holding up to $95,000 worth of the token.
Solana vs Avalanche
Avalanche’s growth stands out when compared with competitors like Solana, which saw a 6.7% decline in weekly transactions, though still recorded 433 million transactions across 18.9 million addresses.
On Solana, DEXs like Raydium and Fluxbeam dominated, with a combined 475 million transactions. This shows that while Avalanche is gaining traction, Solana maintains a significantly larger user base.
Outlook: DeFi and memecoins continue to drive growth
The latest data underscores a clear trend: Avalanche’s activity surge is primarily speculation-driven, fueled by whales, trading bots, and DEX users. While institutional adoption — such as its integration into government data publishing — is noteworthy, short-term growth continues to depend on DeFi trading and memecoin hype.
As blockchain competition intensifies, Avalanche’s ability to retain speculative traders while expanding real-world adoption could determine whether it sustains this momentum in the coming months.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.