Avalanche MOM volume up 167% as L1 networks record growth

Recent data from DeFiLlama suggest an increasing adoption of layer 1 (L1) blockchains in the decentralized finance (defi) sector.

Avalanche (AVAX), an Ethereum Virtual Machine (EVM)-based layer 1 solution, is experiencing a significant surge in trading activity. Avalanche’s trading volume has risen to approximately $2.73 billion.

Citing DeFiLlama, crypto reporter Colin Wu revealed that Avalanche’s weekly trading volume escalated by 167% month-on-month during the recent week to reach its highest level since July 2022.

In November, the transaction volume on multiple L1s experienced significant growth. The transaction volume on the Avalanche increased by 167% MOM to $2.73 billion, the highest since July last year; the transaction volume of Osmosis increased by 113% MOM to $490 million; in…

— Wu Blockchain (@WuBlockchain) December 2, 2023

Similarly, per DefiLlama’s data, Osmosis’s (OSMO) transaction volume also increased by 113% to 490 million, with Solana (SOL), Sui (SUI), and THORChain (RUNE) also hitting record highs.

Some analysts see this growth in the adoption of L1 networks as an indication of a potential shift in user preference within the defi space. Traders and investors are constantly seeking faster and cheaper transaction fees.

Avalanche’s jump in trading volume marked an 88% increase in the price of AVAX in the last 30 days and a more modest 5.6% uptick over the last seven days. In 24 hours, AVAX’s price has also increased 2.3%, with the token currently trading at $22.34.

Most of the other tokens also performed similarly. OSMO registered a 2.7% rise in the previous 24 hours and 9.4% in seven days. SUI was up 2.3% in one day but reported a 3.9% drop in seven days.

The best performance among the L1 chains came from THORChain, whose native token jumped 12% to $7.20 in 24 hours. Its 7-day price chart was also just as impressive, going up 33%. However, it was most exceptional over 30 days, registering nearly a 155% increase in that time.