Avalanche (AVAX) has set a record for itself with more than 1 million active users in May, and the trend continues to point toward growth. One reason is the launch of AvaCloud a week ago.
Avalanche (AVAX) can celebrate a milestone in its development: In May, the ecosystem recorded more than 1 million active users for the first time, blockchain data shows. Compared to April, this represents an increase of a good 20 percent. Avalanche is finding great favor in the Decentralized Finance (DeFi) division as a Layer 1 solution, but blockchain gaming is also becoming more and more of a success factor for AVAX. In this context, the launch of AvaCloud at the end of May is considered an important innovation.
This is because AvaCloud makes it possible to set up one’s own blockchain without programming knowledge, which then docks with Avalanche as a so-called subnet. Co-founder Emin Gün Sirer referred via Twitter to the potential with which AvaCloud is sounding out new applications to AVAX. Previously, long development times and high costs had deterred many projects from entering blockchain solutions. With AvaCloud, getting started will be as easy as setting up a website, Emin Gün Sirer wrote. As of December 2022, Avalanche had integrated direct communication between subnets through Avalanche Warp Messaging (AWM) on its subnets, which also promotes new uses.
DeFiLlama lists Avalanche as the number seven largest ecosystem for DeFi, with just over $700 million in backed capital. AvaCloud has already signed up game studio Shrapnel and gaming app Blitz, among others. Those responsible at AVAX speak of a steadily increasing number of cooperation partners and see themselves in the fast lane in terms of technological advancement. With the Cortina upgrade in April, Avalanche improved technological details suggested by developers.
Bottom line: Avalanche through AvaCloud with Blockchain as a Service.
For investors, the number of monthly active users on Avalanche matters because they use AVAX to pay for fees and sometimes in DApps themselves. Here, the blockchain data for May also shows a record value. So Avalanche seems to be slowly evolving from a DeFi-focused ecosystem to an all-rounder that can support basically any online application through AvaCloud. AVAX is currently trading at around $14 and showing a cautious upward trend in 2023, but is far from all-time highs above $140 from the crypto boom year of 2021.