With prices soaring 300% in two months, is Avalanche’s growth model set in stone?
Avalanche has experienced a staggering 300% price increase over the past two months.
How is Avalanche’s rise driven this time?
- The market's popularity is mainly concentrated in MEME, DeFi leaders, GameFi and other fields. In 2023, the number of game projects developed on Avalanche will surge.
- Partnerships with major financial institutions such as JPMorgan Chase, Citi, and Republicnote have given Avalanche tremendous mainstream credibility. And Avalanche’s cooperation with JPMorgan Chase is considered a key part of expanding RWA. The direct expression of expectation is currency price.
- Recently, the inscription trend has also hit Avalanche. According to data from the Avalanche inscription trading market Avascriptions, as of this writing, the current market value of ASC20 has reached US$95 million, with AVAV ranking first, with a market value of US$62 million.
Through ecological layout, endorsement from large institutions, and well-timed hot marketing, Avanlanche, whose market value has reached the top ten, is not the first time to achieve growth through this combination of punches. The same script has also been staged in 2021 : In 2021, Avalanche TVL rose from US$2.3 billion to US$13.9 billion.
Avalanche is supported by large funds and endorsed by large companies: Polychain Capital, Three Arrows Capital and Dragonfly Capital and other large funds participated in Avalanche's financing, with a financing scale of US$230 million.
2021 is also the year of NFT. The market value of NFT this year reached US$17.6 billion, a surge of 210 times. Avalanche did not miss this great opportunity: Avalanche and the star card Topps instantly attracted a large number of NFT ecology.
Sparing no effort in ecological support:
- In 2021, Avalanche will launch a US$200 million fund (Blizzard) to stimulate defi, enterprise applications, NFT, cultural applications and other fields in the avalanche ecosystem.
- In 2023, Avalanche has not stopped supporting the ecosystem: it is involved in NFT, RWA (Avalanche Vista), and GameFi (Avalanche's subnet solution), which effectively solves the limitations of network scalability and the overly complex combination of blockchain technology and games. question).
- Multi-chain framework: Avalanche is a PoS chain that adopts three core chains: transaction, contract, and platform chain.
- Head protocol cooperation: EVM compatibility allows developers to quickly port Ethereum-based applications to Avalanche.
For Startup, Avalanch's growth strategy requires a lot of technical support and financial support; the funds of small projects are not enough to support these strategies, so what can small projects learn from Avalanch's growth strategy?
With multi-chain frameworks, head protocols, and cooperation with multiple funds, Avalanche is committed to enriching the chain's ecology to attract users. In addition to the support of large funds, Avalanche will also release some small-budget activities from time to time to support its own ecological growth:
Avalanche uses growth tools to accomplish these activities. Like Web2's growth tool Gleam, Web3's growth tool uses lightweight tasks to help projects complete growth, and the on-chain + off-chain task templates are more in line with the characteristics of the Web3 market.
For projects with insufficient budget, growth tools can be used to achieve growth, which is a strategy with a higher production rate:
Web2 and Web3 are highly integrated. Despite the Web3 growth platform, most growth platforms consider usage habits in both areas, both in terms of task templates and usage habits. After all, the potential users of Web2 are very broad. While helping the project win Web3 users, it can also attract web2 users to join the game, which is a double-edged sword.
This can be seen from the login method: mainstream Web3 growth platforms support Web2 login, lowering the user threshold:
The project is still in its early stages and requires good data performance to attract the endorsement of large institutions. You can also use hot spot marketing to achieve project growth. The hot spots of Web3 rotate quickly because it is a global market, and even the hot spots that everyone in each region pays attention to are different. For example, the inscription craze radiates from Asia to the world, frequently appears in the European and American markets, and DePIN in the 2024 predictions of large institutions , and RWA, which has been mentioned constantly since the middle of the year.
For small-budget projects, cooperating with other projects for joint hotspot marketing can achieve a win-win effect. Both parties can use the other party's traffic to attract users and increase the project's visibility. At the same time, cooperating with different projects is also an opportunity to expand their own ecology.
Although the market competition is fierce, there are still many ways for projects to achieve growth. Projects of different sizes have different growth strategies, and the appropriate one is the best.