Stablecoin-focused blockchain Terra (LUNA) co-founder Do Kwon is bullish on one Ethereum (ETH) competitor that he says is enjoying massive adoption.<\/p>\n
In a new tweetstorm, Kwon says<\/a> that the smart contract-enabled blockchain Avalanche<\/a> (AVAX) enjoys one of the highest levels of usage at the moment.<\/p>\n \u201cToday, none can deny that Avalanche is one of the most exciting ecosystems in web3. <\/em><\/p>\n It is currently one of the most heavily trafficked Layer-1s with hundreds of apps spanning DeFi [decentralized finance] and gaming.<\/em><\/p>\n The numbers are great.\u201d<\/em><\/p>\n Avalanche\u2019s total value locked<\/a> (TVL) at the moment is over $10.8 billion, an increase of over 3,500% from less than $300 million just a year ago, according to DeFi-focused analytics platform DeFi Llama. The massive surge in AVAX\u2019s TVL suggests growing user adoption as the metric represents the total capital held within Avalanche\u2019s smart contracts.<\/p>\n The Terra<\/a> co-founder also says<\/a> that Avalanche\u2019s future looks rosy as he believes AVAX\u2019s blockchain will be one of the biggest engines that will power the next generation of the internet.<\/p>\n \u201cBut the future is even brighter for Avalanche. <\/em><\/p>\n Every bull market, we are reminded of a need for a horizontally-scaled future, as blockspace gets clogged and monolithic chains struggle. <\/em><\/p>\n Web3 will run on multiple chains, and many of those chains will be Avalanche subnets.\u201d<\/em><\/p>\n Subnetworks or subnets are validators that enable other entities to establish their own layer-1 or layer-2 blockchains on Avalanche.<\/p>\n Referencing the recent announcement<\/a> made by the Luna Foundation Guard to purchase $100 million worth of AVAX to serve as a reserve asset for Terra\u2019s dollar-pegged stablecoin, UST, Do Kwon says<\/a> the move will reduce AVAX\u2019s supply over time.<\/p>\n Luna Foundation Guard is a nonprofit responsible for building reserves to support UST.<\/p>\n \u201cThis means that as UST adoption grows on Avalanche, AVAX becomes more scarce \u2013 aligning the growth of the stablecoin with the Layer-1\u2019s developers and users.\u201d<\/em><\/p>\n Check Price Action<\/a><\/span><\/em>
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