- Avalanche released the Evergreen subnet protocol called Spruce on April 6, 2023.
- According to a joint study from Uniswap and Circle (peer-to-peer payments company), the cost of forex could be reduced by up to 80%.
According to the latest news, layer 1 blockchain protocol Avalanche (AVAX) achieved a noteworthy milestone by reaching a six-month high in daily active addresses. According to data from Artemis.xyz, a crypto analytics platform, the daily active addresses on the platform had surged to nearly 80k on April 12, indicating an 85% growth in its daily active user base over the last three months.
The increase in daily active addresses also coincided with Avalanche’s partnership with several financial institutions on 12th April, which will contribute to its network infrastructure. This also highlights the growing interest of Avalanche among traditional finance companies. At present, AVAX stands at $19.14 as per data from price tracking website for crypto assets, CoinMarketCap.
How Will Financial Firms Benefit From Spruce?
The Avalanche blockchain protocol is now one of the fastest growing protocols, having surpassed BNB Chain, Ethereum, Tron and Bitcoin. The analysis by Artemis.xyz revealed that only four protocols, including StarkNet, Arbitrum, Stacks and Canto grew at a faster pace. At the time of writing, the Total Value Locked (TVL) for Avalanche currently amounts to $865.83 million, with a 2.01% decline in the past 24 hours, according to crypto TVL aggregator DefiLlama.
Several financial institutions had joined Avalanche’s new Evergreen subnet “Spruce”, which will solidify the network infrastructure. The institutions include T. Rowe Price Associates, WisdomTree, Wellington Management and Cumberland. These firms aim to evaluate the advantages of executing and settling different trades on-chain. The Spruce is specially designed for institutional blockchain deployment, allowing developers to avail the full-functionality of the subnet without risking capital.
AVAX has emerged as an alternative to Ethereum since it faces scalability issues. Avalanche offers a different blockchain ecosystem that can coexist with Ethereum in a multi-chain future. Avalanche has three distinct blockchains on its network that are optimized for different types of transactions, allowing for a potential capacity of 4500+ transactions per second (TPS) with the implementation of subnets.
The Active Avalanche C-Chain Address chart depicts the quantity of unique addresses that were active on the Avalanche network. Major financial firms have joined Avalanche’s Subnet ecosystem (Spruce) to test blockchain-based foreign exchange (forex). If initial trials are successful, the institutions plan to expand their activities to tokenized credit issuance. Avalanche announced that the institutions will first use “valueless tokens” to incur forex transactions without any loss of capital.
Successful trials will allow these firms to experiment with other blockchain settlement methods including tokenized equity, credit issuance, trading and fund management. Spruce also offers features to ensure that the firms operate within legal parameters. Firms must first pass Know Your Customer (KYC) verifications to receive tokens to operate on-chain. The wallet addresses of these firms are also whitelisted “at the chain level” after verification.