According to Mars Finance, the number of active addresses on Avalanche's C chain has plummeted to a 12-month low of 31,000, which is comparable to the level in October 2023. This is in stark contrast to the network's peak of 99,000 active addresses in December 2023.
Avalanche is designed as a high-throughput, low-latency blockchain that aims to solve the scalability problems that plague legacy networks. Its unique consensus mechanism and multi-chain architecture are expected to achieve the trinity of blockchain design: decentralization, scalability, and security.
Current user activity is down nearly 70% from its December peak, calling into question the network’s ability to maintain user engagement. Despite processing around 150,000 transactions per day, the decline in the number of active addresses suggests that activity is concentrated among fewer users.
