Avalanche is a high-performance blockchain platform designed to enable scalable, decentralized applications (dApps) and custom blockchain networks. Launched in September 2020 by Ava Labs, Avalanche aims to provide a robust infrastructure for DeFi, enterprise solutions, and digital asset management. It leverages a unique consensus protocol called Avalanche consensus, which allows for high throughput and low latency, making it one of the fastest and most efficient blockchains in the ecosystem.
Components of the Ecosystem
Component
Token 1
Token 2
Token 3
Wallet
AVAX (Avalanche – native wallet integrations)
CORE (Core Wallet)
METAMASK (not tokenized – widely used with Avalanche)
DEX
JOE (Trader Joe)
PANGOLIN (Pangolin)
YAK (Yield Yak)
Lending and Borrowing Platforms
AAVE (Aave – deployed on Avalanche)
QI (BENQI)
BANKER JOE (Trader Joe Lending)
Oracle
LINK (Chainlink – integrated with Avalanche)
TELLOR (Tellor)
BAND (Band Protocol – integrated with Avalanche)
Bridges
AVAX (Avalanche Bridge – native)
SYN (Synapse)
ANY (Anyswap)
Stablecoins
USDT (Tether)
USDC (USD Coin)
MIM (Magic Internet Money)
Decentralized Identity (DID) Solutions
CIVIC (Civic – cross-chain integration)
IDEX (IDEX)
AVAX (Avalanche – ecosystem integration)
DAOs
AVAX (Avalanche Governance)
QI (BENQI DAO)
JOE (Trader Joe Governance)
Data Storage Solutions
FILE (Filecoin – integrated via cross-chain solutions)
AR (Arweave – cross-chain with Avalanche)
STORJ (Storj – integration with Avalanche)
NFT Marketplaces
KALA (Kalao)
JOE (Joepegs by Trader Joe)
YETI (YetiSwap)
Layer 2 Solutions
AVAX (Avalanche Subnets)
C-CHAIN (Avalanche C-Chain for scaling dApps)
BSC (Binance Smart Chain – interoperable with Avalanche)
Explorers
SNOWTRACE (SnowTrace by Etherscan)
AVAX.EXPLORER (Avalanche Explorer)
AVAXSCAN (AVAXScan)
Properties Compared to Competitors
Property
Avalanche
Ethereum
Solana
Binance Smart Chain
Consensus Mechanism
Avalanche Consensus
Proof of Stake
Proof of History + Proof of Stake
Proof of Staked Authority
Transaction Speed
4,500 TPS
15-30 TPS
65,000 TPS
100-300 TPS
Finality Time
~2 seconds
~6 minutes
~400 milliseconds
~1 minute
Language Support
Solidity, Vyper
Solidity, Vyper
Rust, C, C++
Solidity
Energy Efficiency (kWh/Tx)
~0.0028 kWh
~0.03 kWh
0.00051 kWh
~0.01 kWh
Performance Compared to Competitors
Metric
Avalanche
Ethereum
Solana
Binance Smart Chain
Transaction Fees ($/Tx)
$0.02
$0.5 – $50
$0.00025
$0.05
Total Value Locked (TVL)
$3.5 billion
$20 billion
$1.5 billion
$2 billion
Transaction Volume
2 million Tx/day
1.2 million Tx/day
40 billion Tx/month
4 million Tx/day
Active Addresses
300,000+
500,000+
2 million+
1 million+
Number of Smart Contracts Deployed
60,000+
3.5 million+
100,000+
100,000+
Hash Rate
N/A (PoS)
1,000,000 GH/s
N/A (PoS)
N/A (PoSA)
Staking Participation
60% of AVAX supply
10% of ETH supply
70% of SOL supply
50% of BNB supply
Tokenomics
Total Supply: 720,000,000 AVAX tokens
Current Circulating Supply: 380,000,000 AVAX tokens
Emission Rate: Avalanche has a fixed supply cap and no new tokens are minted beyond the initial supply. The emission rate of AVAX is zero, with only transaction fees and staking rewards affecting supply.
Token Utility:
Transaction Fees: AVAX is used to pay for transaction fees and computational resources on the Avalanche network.
Staking: AVAX tokens can be staked to participate in network consensus and earn rewards. Staking helps secure the network and validate transactions.
Governance: AVAX holders have governance rights, allowing them to vote on protocol upgrades and changes within the network.
Platform Operations: AVAX serves as collateral for the issuance of new assets and supports the operation of the Avalanche network’s subnets and custom blockchains.
Main Investors
Investor
Token Holdings
Percentage of Total Supply
Polychain Capital
70,000,000 AVAX
9.72%
Andreessen Horowitz
50,000,000 AVAX
6.94%
Pantera Capital
40,000,000 AVAX
5.56%
Three Arrows Capital
30,000,000 AVAX
4.17%
Galaxy Digital
20,000,000 AVAX
2.78%
Founders and History
Avalanche was founded by Emin Gün Sirer, a computer scientist and professor at Cornell University, along with Kevin Sekniqi and Maofan “Ted” Yin. The project began in 2018, with its mainnet launching in September 2020. Avalanche introduced its innovative consensus protocol, designed to provide high throughput, low latency, and strong security, making it well-suited for both financial applications and enterprise use.
Since its launch, Avalanche has gained significant traction in the blockchain space, attracting a growing number of projects and developers. Its scalability and efficiency have positioned it as a leading platform for decentralized finance (DeFi) and custom blockchain solutions.
Invest Alpha 