Uphill Path to Adoption

This cycle has not seen nearly as much attention on L1s as the previous 2020 and 2021 bull market, with attention dominated by Solana and now Base (which doesn’t even have a token). After these two chains lies a significant gap when it comes to attention and activity, with other chains competing for the spots below as others await for the highly anticipated Monad, MegaETH, or Berachain TGEs.

In this thesis, we’ll discuss a familiar L1 rotation that still might have flown under many’s radar; Avalanche. Avalanche was one of the darlings of last cycle but has not seen attention return the way $SOL has, despite strong efforts on the partnerships side of things, alongside many attempts to ride a broad range of narratives, from RWAs to gaming. With a foundation built by the BD and ecosystem teams over the course of the Bear and Bull market and a recent chain upgrade, the time for an $AVAX repricing could perhaps come sooner-than-expected.

Source: Kaito.ai – A consistent divergence between mindshare and $AVAX price can be observed; this continued recently with mindshare sinking below what might be considered ‘fair’ for Avalanche.

Last cycle, Avalanche’s offerings were similar to those of Ethereum mainnet and other L2s, with attention from users mainly falling on the DeFi ecosystem; a standard EVM after all. Now, Avalanche has pivoted more toward other sectors, including gaming, and has found success attracting notable players in those verticals. There are also some key partnerships yet to be completely rolled out, which might provoke a reaction from the market, especially if the current macro condition becomes more favorable.