Asset Manager with $77.8 Billion AUM Expresses Concerns Over Avalanche (AVAX) Future

VanEck, a prominent investment firm, expresses concerns about Avalanche (AVAX), highlighting potential challenges for the Ethereum competitor.

VanEck's latest digital asset market report highlights a significant decline in on-chain activity for Avalanche's C-Chain. From its peak two years ago, where Avalanche's C-Chain boasted over $10 billion in total value locked (TVL), $1 million daily fees, and over 100,000 daily active users, the numbers have sharply decreased. By September 2023, the TVL was at $500 million, daily fees were down to $11,000, and daily active users reduced to 34,000.

While VanEck acknowledges Avalanche's advanced technology, they believe it lacks the competitive edge of Ethereum and other rivals. The platform faces challenges like a diminishing developer community and less venture capital support. VanEck states, "Despite Avalanche's technical prowess, its future hinges on attracting enterprise customers and countering the dwindling developer base and venture capital interest." They emphasize that without a robust developer ecosystem and backing like Ethereum's, Avalanche's long-term prospects seem uncertain. However, they also note that in a bullish market, the dynamics can change, especially if Avalanche continues to offer innovative blockchain solutions. The key for AVAX's revival lies in applications that attract new users.

Oct 10, 2023

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