Table of Contents

Intro

1. Status of the Subnet Ecosystem (feat. Xangle Analytics)

1-1. Rapid Growth in the Number of Subnets

1-2. DFK Maintains its Status as the Most Active Subnet

2. Time to Renew Focus on Subnet Ecosystem Growth

2-1. Avalanche Subnet: A New Option for Global Web2 Companies

2-2. Standout Subnets: GREE, SK Planet (UPTN), and Gunzilla Games (gunzilla)

2-3. Anticipating Major Subnet Adoption Announcements in 2H 2023

3. Subnet Expansion Strategy and Future Outlook

3-1. Customized Evergreen Subnet: Catering to Enterprise Needs

3-2. Accelerating Subnet Deployments, but Early Stage for Rapid Service Onboarding

3-3. Leveraging Web2 Enterprise References as a Competitive Advantage

4. Subnet Ecosystem Growth and its Impact on Avalanche Stakeholders

4-1. Enabling Long-Term Value for $AVAX

4-2. Avalanche Network Security Improves as the Cost of Attack Increases

Closing

 

 

Intro

"Visualizing the Vision of Avalanche - 1," we delved into the competitive advantages of Avalanche, specifically its blockchain design architecture, and determined that Avalanche possesses the necessary technical foundation to fulfill its vision. Building upon this strong technical advantage, the next step is to expand the subnet ecosystem. In this article, we will provide an overview of the current state of the Avalanche ecosystem, with a particular emphasis on on-chain data. Additionally, we will explore Avalanche’s subnet expansion strategy while providing insights into the upcoming subnets that are set to contribute to Avalanche’s continued development. 

 

1. Status of the Subnet Ecosystem (feat. Xangle Analytics)

1-1. Rapid Growth in the Number of Subnets

Since the introduction of Multiverse in March 2022, there has been a significant surge in subnet creation, with a total of 58 subnets being created as of May 10. This remarkable growth can be attributed to the implementation of the $290M incentive program aimed at fostering subnet expansion and advancement.

Specifically, among the 58 subnets, 23 (40%) are currently operational with at least one validator, while the remaining 35 (60%) have ceased operations. Out of the 11 subnets for which on-chain data is available, 6 (10%) exhibit substantial levels of transactions and active addresses. These notable subnets include DFK (DeFi Kingdoms), StepNetwork, WrapTag, Dexalot, XANA, and XPLUS (excluding Swimmer Network, which recently announced plans to discontinue operations).

Among the various subnets in the Avalanche ecosystem, DFK has emerged as the clear leader in terms of transaction volume and active addresses. It has consistently maintained its position at the top, followed closely by StepNetwork, WrapTag, and XPLUS, which also exhibit significant transactional activity and user engagement. In the subsequent sections, we will delve into a comprehensive analysis of individual subnet metrics, providing a more in-depth understanding of their respective performance.

Apart from a temporary surge following the full activation of the DFK subnet in July 2022, the overall transaction count has remained relatively steady at approximately 2M, with active addresses hovering around 10,000. These figures have not seen proportional growth in correlation with the expanding number of subnets, indicating that a majority of transactions and active addresses are concentrated within a limited number of subnets. This dominance of DFK subnets can be observed in the chart provided above.

1-2. DFK Maintains its Status as the Most Active Subnet

DFK stands out as the undisputed leader among the subnets in the Avalanche ecosystem, boasting an impressive number of transactions and active addresses that surpass those of other subnets by a significant margin. Since its introduction in late March 2022, DFK has consistently commanded a substantial portion of the ecosystem's activity, accounting for an astounding 89% of total transactions and 76% of total active addresses. Although there may be occasional fluctuations in DFK's dominance when new apps are launched or events like token airdrops capture temporary user attention, it continues to maintain its stronghold as the primary and most influential subnet within the Avalanche network.