In the world of cryptocurrency, Ethereum (ETH) is often considered the gold standard. However, a new report from digital assets research firm Messari suggests that Avalanche (AVAX) may be giving ETH a run for its money.
According to the report, Ethereum averaged 1.17 million transactions per day in Q1 2022, while Avalanche averaged 1.15 million transactions per day over the same period. While the difference may seem small, it is significant given that Ethereum has a much larger user base than Avalanche.
Moreover, the report notes that Avalanche’s transaction volume has been growing at a faster rate than Ethereum’s in recent months. In fact, Messari’s research points out that Avalanche saw its average daily transactions spike from 473,000 last quarter to 865,000 in Q1 – which is 74% of Ethereum’s average in Q1. What’s more, with daily transactions continuing their upward trend, Avalanche could exceed Ethereum’s transaction volume in Q2.
“With the incentive programs taking hold and subnet launches on the way, Avalanche has an interesting opportunity to surpass Ethereum over the next quarter,” Messari’s James Trautman wrote in his research.
The report also forecasts that Avalanche’s transaction fees, currently averaging around $0.67 per transfer, will decrease in the second quarter, in part, to a major Avalanche upgrade called Apricot.
The report cites the upcoming Apricot upgrade as one of the main reasons for the predicted decrease.
“With more anticipated releases of Apricot, we should expect to see average transaction fees continue to stabilize and trend downwards,” the report said.
Avalanche’s Apricot enables “verifiable pruning,” which gives it a big advantage over Ethereum in terms of scalability. By allowing users to only keep track of the parts of the blockchain that are relevant to them, Apricot enables Avalanche to process many more transactions than Ethereum. This makes it an ideal platform for building dApps that require high throughput, such as gaming or social media applications.
Avalanche is also able to provide near-instant finality, which is achieved by having three interconnected blockchains instead of the usual one. This means that transactions cannot be reversed or censored. This is also a big advantage for applications that require stability, such as financial contracts or exchanges.
It goes without saying that Apricot is a major protocol upgrade that is designed to improve Avalanche’s scalability and efficiency. In addition, the upgrade will introduce a number of other improvements, including cross-chain communication, shorter transaction confirmation times and increased security.
As the world of cryptocurrency evolves, it will be interesting to see if Avalanche, as one of the most, if not the most reliable and secure blockchain platform available today, can continue to close the gap with Ethereum, the world’s second largest cryptoasset by market value.
AVAX was last changing hands at $77.40, down 0.71% in the last 24 hours. The native token of the Avalanche blockchain has a total market capitalization of $21 billion.