DeFi Kingdoms


                    
                    Ava Labs has introduced its new Evergreen subnets, aiming to help institutions improve control and intercompany communication on the blockchain.
                    Ava Labs, the developer of the Avalanche layer-1 blockchain platform, is introducing new institutional deployments to improve the blockchain environment.On April 6, Ava Labs introduced Avalanche Evergreen Subnets, a suite of institutional blockchain tooling and customizations designed to address company-specific requirements for financial services.The new product aims to allow institutions to maintain control over their blockchain environment while enabling intercompany communication, Ava Labs’ institutional business development director, Morgan Krupetsky, told Cointelegraph.“Currently, many institutions are building use cases on enterprise blockchains such as Corda, Hyperledger, Quorum or R3, which inherently are not interoperable and rely on third-party bridges,” Krupetsky said. With Evergreen subnets, member institutions will be able to communicate with each other without relying on third-party bridges, seamlessly transferring assets, proceeding with trade confirmations and other messages, the executive noted.The intercompany communication on Evergreen subnets is enabled using Avalanche’s native communication protocol, Avalanche Warp Messaging. The AWM feature provides native communication between any two blockchains on different Avalanche subnets.An Avalanche subnet, or subnetwork, is a dynamic set of validators working together to achieve consensus on the state of a set of blockchains. Subnets are independent and don’t share execution, storage or networking with other subnets or the primary network, which allows the network to scale.“Subnets were always part of the target state vision for the Avalanche network,” Krupetsky said, adding that the first subnet — DeFi Kingdoms — was launched in April 2022. “Subnets can be thought of as application-specific blockchains that can be customized for a whole host of industries and use cases,” he added.Visual representation of how subnets reside in the Avalanche network, compared with topologies of inter-chain economic security in Cosmos and Polkadot. Source: Burak ArikanIn contrast to default subnets, Evergreen subnets have certain built-in features aiming to provide a ready-made product for institutional blockchain deployments, such as user and validator permissioning, jurisdictional-based geofencing, custom gas token selection, and Ethereum Virtual Machine compatibility, Krupetsky noted.Related: Enterprise blockchain is transforming business operations and reducing costs — Web3 execEvergreen subnets also enable a controlled environment while providing public blockchain development, the executive added, stating:“In our work with institutional partners on both the buy and sell side, we found that institutions had common considerations and requirements when seeking to deploy on public blockchain infrastructure, so we created Evergreen.”Krupetsky also said that Evergreen subnets bring the “best of both worlds” from private blockchain solutions and fully public solutions because, separately, such options don’t meet long-term scaling needs or standards for security and control.The news comes amid Ava Labs announcing the South Korean tech firm SK Planet building an Avalanche subnet for its users. The new subnet, UPTN, will be integrated with SK Planet’s portfolio of consumer applications, including OK CashBag.SK Planet, a leading data and technology company in South Korea, is building an Avalanche Subnet for their tens of millions of users.Their subnet, UPTN, will be integrated with SK Planet’s portfolio of consumer applications, including OK CashBag. pic.twitter.com/hnbwapQBgM— Avalanche  (@avalancheavax) April 5, 2023

As previously reported, Avalanche Foundation director Emin Gün Sirer believes that subnets are the next big thing for blockchain after smart contracts. According to the executive, they enable functions only possible with “network-level control and open experimentation.”Magazine: Bitcoin in Senegal: Why is this African country using BTC?



Avalanche introduces ‘Evergreen’ subnets to connect institutions on blockchain


                    
                    AVAX price rallied after announcing news of an Amazon cloud integration, but does the news do anything to improve Avalanche’s fundamentals?
                    Avalanche (AVAX) came into the spotlight early at the beginning of 2023 by adding its blockchain support to Amazon Web Services (AWS) cloud. However, empirical and on-chain analysis suggests that Avalanche’s price surge is likely due to a broader cryptocurrency market pump which will likely end with the rest of the market.Is Avalanche’s Amazon news exaggerated?While integration with the world’s largest blockchain service is a positive step for Avalanche, the hype around its implications might be exaggerated. The evidence lies in a similar move that Avalanche’s team made in December 2022.Avalanche’s team established a deal with Alibaba’s Cloud toward the end of 2022. The Asia-based cloud service commands a 6% share of the sector globally. Nevertheless, the blockchain’s validator count has remained consistent, implying that not many users of Alibaba Cloud are willing to run an Avalanche node.Avalanche validator count. Source: Avax.networkAWS earns revenue from users willing to use blockchain nodes, which is probably why it keeps adding support for various blockchains. Amazon has supported an Ethereum node since May 2021. The recent Amazon partnership announcement might mislead some investors.Avalanche’s ecosystem developmentAvalanche’s blockchain usage data is also not encouraging. The gas used on the blockchain subsided steeply after the May 2021 crypto market crash and it hasn’t recovered since. The total value locked in Avalanche’s DeFi ecosystem is near two-year lows of $885 million, ranking sixth in comparative liquidity of other chains.Gas used on Avalanche C-chain and DeFi Kingdoms subnet. Source: Avax.networkThe project has found some success with gaming subnets like DeFi Kingdoms and Swimmer Network. While the growth of subnets enhance Avalanche’s ecosystem, it doesn’t bring direct value to AVAX holders because the security and tokenomics of subnets can be independent of the primary Avalanche blockchain.Avalanche validators only benefit from the subnets when they rent security from Avalanche validators or use the mainnet in the initial phases to bootstrap their project before moving to independent chains. A few promising gaming projects like Shrapnel and Ascenders are working toward this goal. Nevertheless, it remains to be seen if they will bring enough activity and revenue to Avalanche validators.AVAX exchange flow data and technical analysisAvalanche’s recent price rally is primarily driven by a liquidation hunt of short orders in the futures market. Coinglass data shows that the funding rate for Avalanche perpetual swaps remained negative since the FTX implosion in November. The crowded short positions allowed whale buyers to run seller’s stops.The funding rates recovered to the neutral territory after last week’s price surge. It effectively emptied the fuel which was causing the current bull run.Avalanche perpetual swap funding rate. Source: Coinglass“Smart money” wallets identified by Nansen deposited AVAX worth $2.3 million during that period. Additionally, venture funds and market makers, including Jump Capital, Wintermute Trading and Longling added $1.3 million to the net inflow. The total inflow of AVAX to exchanges over the second week of January 2023 was $8.025 million.As Avalanche’s price gained 40% in the second week of 2023, the exchange flow data recorded considerable inflows, probably as investors moved to sell, raising caution flags for buyers.AVAX inflow and outflow from crypto exchanges. Source: NansenTechnically, breakout above the 50-day exponential moving average (EMA) at $13.40 keeps alive the possibility of tagging the 100-day EMA at $20.70 and August 2022 peak of $31.45. However, the time for buyers to show their hands is running out quickly.The Moving Average Convergence Divergence (MACD) indicator shows early signs of topping out, with buying volumes taking a dive.AVAX/USD daily price chart. Source: TradingViewIn the AVAX/BTC pair, the move encountered resistance from the support and resistance level of 0.000834 BTC, which is also where the 100-day EMA currently lies. If buyers fail to conquer this level, a drop toward 0.000642 BTC is expected, with a chance of reaching 0.000465 BTC.AVAX/BTC daily price chart. Source: TradingViewMoreover, the broader altcoin market capitalization (excluding Bitcoin) has already tapped its bullish targets around its 100-day MA at $563 million. If the positive momentum starts to cool off across the niche market, AVAX uptrend will likely reverse with it.Generally, Avalanche’s usage statistics have remained unchanged since the last quarter of 2022. There is little to attribute to the recent price rally to fundamental growth. The project has the potential to grow in the future, benefiting from the blockchain gaming space.The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
