In a tumultuous second quarter (Q2) for the cryptocurrency industry, Avalanche (AVAX), a layer-1 blockchain platform often viewed as a rival to Ethereum (ETH), reported a mixed set of financial results.
According to a recent analysis by data firm Messari, AVAX's price experienced a decline of 4.2% from the previous quarter, dropping from $18.77 to $17.99. This price decrease was accompanied by a 2.6% reduction in its circulating market capitalization, which decreased from $7.8 billion to $7.6 billion. Consequently, Avalanche's market ranking fell from 15th to 16th place among all cryptocurrencies. However, there were positive developments as well, with transaction fees for AVAX rising nearly 29% during the quarter, increasing from 58,300 to 75,170. Revenue from transaction fees in USD also saw a slight uptick, moving from $1.50 million to $1.54 million, reflecting a growing user base and heightened activity on the platform.
A notable highlight for Avalanche in Q2 2025 was the substantial increase in daily transactions across its C-Chain and other layer-1 platforms. The average daily transactions surged by 169.91%, reaching 10.1 million compared to just 3.7 million in the previous quarter. Additionally, daily active addresses experienced a remarkable rise of 210.45%, climbing to 519,954, indicating a significant boost in user engagement.
As part of this growth, Avalanche successfully reduced its average transaction fees by 42.7%, from $0.05 to $0.03. This decrease can be largely attributed to the Octane upgrade, which implemented a dynamic fee mechanism on Avalanche's C-Chain, facilitating real-time fee adjustments to enhance user experience and lower costs.
The C-Chain specifically showcased impressive growth, with average daily transactions soaring by 493.4%, from 244,995 at the end of Q1 to 1.4 million by the close of Q2. Daily active addresses also saw a healthy increase of 57% quarter-over-quarter, rising from 29,554 to 46,397, with a notable spike to 419,619 daily active addresses recorded on May 11. Additionally, Avalanche's total value locked (TVL) in decentralized finance (DeFi) rose by 37.1%, increasing from $1.1 billion to $1.5 billion. However, the stablecoin market cap on Avalanche faced a significant drop of 23.8%, falling from $1.9 billion to $1.5 billion.
The surge in daily active addresses across Avalanche's layer-1 platforms was particularly significant, with the average daily active addresses skyrocketing by 444.8% quarter-over-quarter, from 68,723 to 374,402. As of the latest updates, AVAX's price has rebounded from its Q2 lows, approaching the $23 mark, representing a 35% increase over the past thirty days, driven by the recent bullish momentum that propelled Bitcoin (BTC) to a new all-time high exceeding $123,000.
