With the launch of the cross-chain Avalanche-Ethereum (AEB) bridge and community built decentralized exchange Pangolin, one after the other, Avalanche undeniably went through a very successful and exciting few weeks. Avalanche’s native token, AVAX, whipsawed from a $1bn circulating market cap up past $4bn and has now settled back at $2bn all over the course of the past 20 days. The rise of AVAX was mainly driven by the launch of Pangolin’s governance token, PNG, which was allocated 95% to community liquidity miners. As a consequence of such a generous distribution, liquidity in Pangolin rose from zero to $250m in just a few days. All these achievements sparked a lot of attention and allowed a perfect environment for many DeFi users to test drive Avalanche’s relatively new C-Chain blockchain.
C-Chain is a new Ethereum Virtual Machine (EVM) compatible chain that supports key Ethereum tooling including MetaMask, Remix ERC tokens as well as Solidity Smart Contracts. Avalanche can achieve very fast transactions on C-Chain, partly because it’s EVM is pretty much empty, but also because of it’s novel consensus mechanism. In addition, during this period Avalanche was also able to offer a big discount on fees which was likely viewed as an appealing value proposition to market participants getting priced out of Ethereum.
Having said all that, we know that a blockchain without applications is basically useless (except you BTC). At the very minimum, a liqui