Community Trust ScoreVerified
Avalanche AVAX has continually produced some of the most compelling products in blockchain.
There has been a total of $11.88B USD bridged from Ethereum to Avalanche Avax. WETH dominated 41.7% of this volume, indicating that users aren’t satisfied with what their ETH can get them on Ethereum. But the real question is, how much capital has bridged back to Ethereum?
The Avalanche AVAX bridge has seen roughly $6.65B flow out of Avalanche and into the Ethereum ecosystem. Stablecoins are responsible for 41% of these outflows. Are users bridging to Avalanche and using the DeFi ecosystem to borrow stablecoins to take back to Ethereum?
Ethereum has become too expensive, forcing people to find an alternative chain, like Avalanche Avax, to use their crypto in DeFi. AaveAave’s deposit history shows that 52% of Aave’s deposits were settled on Avalanche. Is Avalanche the new DeFi hub?
Ever since Avalanche Avax’s incentive program launched on August 19th, the Ethereum to Avalanche bridge added $65M a day to TVL. This program also included Aave Aave’s integration with Avalanche, on October 4th. Since then TVL has experienced a 75% increase.
Taking a closer look into volume data around October 4th, Aave Aave’s integration with Avalanche AVAX resulted in some significant volume from Ethereum. The bridge experienced 3 spikes well over $450M within the first 9 days! A multi-chain future is definitely here.
Community response: Exorbitant fees is maddening.
ETHGasStation is the industry-leading Ethereum gas price estimator. Those who want to check gas fees can check there.
For clarity, the gas fee is the charge that you pay when performing any transaction on the Ethereum blockchain. The Ethereum blockchain operation requires a certain amount of computational effort, which cryptocurrency miners perform.
To keep the Ethereum network operational and secure, miners receive ETH (the crypto coin of Ethereum) as a reward for their contribution to the network. The ETH coin rewards come from the gas fee. Gwei is the denomination of the gas fee, and one gwei equals 0.000000001 ETH.
The gas fee varies with the type of transaction on the Ethereum blockchain. Therefore, you might want to organize and execute similar transactions together to save money on the gas fees.
There are Ethereum projects and DApps offering gas fee subsidies or minimal gas fees than the market.
Ethereum wallet may not offer accurate estimates of gas fees because it doesn’t consider real-time transaction congestions.
Transactions on the Ethereum Mainnet (layer-one) are expensive due to congestion. Layer-two solutions that help users in scaling up the transactions.
Layer 2 takes transactions away from the main Ethereum chain, rolls them in neat bundles, then sends the bundles back to Ethereum.
