Avalanche (AVAX-USD) has seen a dramatic drop in transaction costs—down by 75%—since its Avalanche9000 upgrade went live on December 16, according to data from Flipside. The result? A 38% surge in daily transactions to over 354,000, as more users and projects flock to the network. This upgrade made Avalanche’s smart-contract operations significantly cheaper, a move aimed at increasing blockchain adoption.
Invest with Confidence:
- Follow TipRanks' Top Wall Street Analysts to uncover their success rate and average return.
- Join thousands of data-driven investors – Build your Smart Portfolio for personalized insights.
Avalanche’s Upgrade Reduces Fees and Attracts More Validators
The upgrade implemented seven key improvement proposals, including ACP-125, which cut the base fee for running smart contracts on Avalanche’s C-Chain from 25 nAVAX to just 1 nAVAX. Additionally, hefty validator fees of 2,000 AVAX were replaced with a more manageable monthly subscription of 1 to 10 AVAX. Stephen Buttolph, chief protocol architect at Ava Labs, explained that the goal was to make every aspect of the Avalanche tech stack more affordable, according to CoinDesk.
Avalanche’s Multichain Structure Enhances Usability
Avalanche, the fifth-largest smart-contract blockchain by market value, leverages a multichain structure. Its C-Chain handles smart contracts, the P-Chain coordinates staking and validators, and the X-Chain processes asset transfers.
At the time of writing, Avalanche’s native token AVAX is sitting at $33.93, having gained momentum since the upgrade. This price reflects increasing demand and renewed investor interest driven by lower transaction fees and greater network activity.
