Key indices are showing signs of going down

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2021-06-08 00:21:57

Hi guys!

So another week has passed in the DeFi market in general and the Avalanche ecosystem in particular. To keep up with the speed of Ecosystem, let’s update and analyze the events in the AVAX system in the past week in the #09 issue of Avalanche Panorama.

Overview of the Avalanche ecosystem during the week

Important update

  • ChainLink price feed is officially deployed on Avalanche’s Testnet network, and will soon be Launched Mainnet. This is a very important infrastructure to help developers build quality products on Avalanche.
  • RenVM integrates Avalanche. Bringing a bridge solution providing abundant liquidity from BTC, BCH, DOGE & LUNA to Avalanche ecosystem.
  • BIFROST – A Multichain Deployment Dapps Platform, Avalanche Integration.

Impressive numbers in the Avalanche . ecosystem

  • During the week, the amount of AVAX tokens staking continued to decrease. Staking Ratio is only 57.38% (down 8.8% from last week).
  • Accordingly, the number of Validators continued to decrease to only 939 (Decreased by 30 compared to last week).
  • There is a positive point that AvalancheJS’s Downloads per week last week continued to increase, reaching ATH at 25,000.

New projects

  • Canary, another DEX project launched on Avalanche.
  • Continuing the NFT trend, Kaolao has announced that they will be Launching NFT Marketplace on Avalanche’s X – Chain and C – Chain.

Analyze each piece

Bridge

In the past week, we continue to see another liquidity bridge added to the AVAX system, Ren Protocol.

With RenVM, we can expect abundant liquidity from other Blockchains such as BTC, LUNA, BCH & DOGE to reach the Avalanche ecosystem.

In terms of other liquidity bridges on the AVAX system, we have the Avalanche Ethereum Bridge (currently a huge liquidity channel for the system) and USDT (currently not officially deployed on AVAX).

The number of liquidity through AEB is currently reaching 105 million USD (at the time of writing), you can follow detailed information here.

Compared to the data I observed last week, this index has decreased (from about 130 million USD). Since the Gas Fee on Ether problem is much more stable now, this solution may not work in the long term, indicating the need for other Bridge solutions to attract liquidity to the ecosystem.

AMM

Pangolin – The largest AMM on the ecosystem, launched Roadmap official.

Specific information is as follows:

  • CEX Listing: PNG will be listed on centralized exchanges, in the near future Gate.io and Coinone.
  • Staking: Accordingly, in addition to Stake PNG to receive transaction fees, you can also have another option that is Lock $PNG to receive a fixed amount of Yield (The longer the lock, the higher the APY level).
  • Reward update: Basically, this Update will help some Liquid Pools receive more Rewards.

Thus, in the volatile market situation, Pangolin has taken steps (Similar to Avalaunch last week) to contribute to reducing PNG’s Supply Side as well as attracting more Liquidity Providers on the platform.

IDO Platform

In addition to Avalaunch which is currently the only IDO Platform on the system, Penguin Finance has also deployed its own Launchpad.

Source: CHK Analytics

In my opinion, now is not the time to launch Launchpad for Penguin due to the following reasons:

  • The current market is very unpredictable.
  • The whole ecosystem is showing signs of slowing down, IDO Platform Avalaunch has not announced any new moves and has strategies to keep the token price.
  • The liquidity puzzle in the AVAX system has not been completed yet, so the current Liquidity in AVAX is still quite low, not suitable for Launchpad.

In short, I think this is a move that seems a bit fast and somewhat unreasonable by Penguin in the context of a bad market as well as unfinished foundation pieces.

NFTs

The NFT puzzle piece on the Avalanche system has been very diverse with many projects (you can see an overview of the projects of the NFT puzzle through the image below).

Source: Avaxians

And continuing with the trend from previous weeks, the NFTs projects on AVAX still show no signs of cooling down:

  • YetiSwap started its own Beta Testing NFT Marketplace.
  • Kaolao has announced that they will be Launching NFT Marketplace on Avalanche’s X – Chain and C – Chain.
  • Penguin Finance continues to announce the launch of the NFT collection (in addition to the Launchpad news).

So many projects currently on Avalanche want to attach themselves to Keywords NFT in the hope that Binance will create a Trend when launching NFT Marketplace in the near future.

summary

I can give some brief thoughts about the Avalanche ecosystem in week 22 as follows:

  • A number of important indicators such as the number of Validators as well as the AVAX Staking Ratio continue to witness a rather severe decline that will affect the price of AVAX as well as reduce the security of the network.
  • Liquidity through AEB also continued to decrease, showing that the system needs another more optimal Bridge solution.
  • Some pieces of Infrastructure like Chainlink or RenVM are integrated into the system to wait for opportunities when the market grows again.
  • Following in the footsteps of Avalaunch last week, Pangolin also made similar moves to keep the token price and attract more liquidity to the platform.
  • Penguin Finance has taken a step that I consider inappropriate when launching Launchpad in the current context.
  • NFT continues to be a hot topic in the AVAX system as projects constantly want to attach themselves to this Keyword.

Thus, through Avalanche Panorama #09, I have updated as well as analyzed for you the events taking place in week 22 of the AVAX ecosystem. Hope you guys get a lot of value as well as important insights through the article, see you in next week’s Panorama issue!

Disclaimer: In this article, I have given some information as well as personal opinions. This is purely for informational purposes and should not be considered investment advice.

#AvalanchePanorama #Avalanche #AVAX

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#Key #indices #showing #signs

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