There is a development today for Avalanche AVAX, which has experienced a decline from its peak levels in the cryptocurrency world. Avalanche introduced Firewood as an efficient blockchain database system. So what does this mean?
Avalanche announcement and AVAX price
In making this announcement, Avalanche states that the smart chain platform has seen a decrease in several important metrics such as active addresses, revenue and fees generated. Accordingly, AVAX price may drop in the short term due to poor on-chain metrics.
Avalanche Network AVAX will soon receive an upgrade known as “Firewood”, an efficient system for storing Centralized blockchain state. Ava Labs states that Firewood is currently in development. He also announced that it was not ready to be distributed yet.
Cryptocurrency project Avalanche introduced Firewood
Avalanche Network AVAX has added the developer preview of Firewood to its network. Ava Labs, the creator of the Avalanche blockchain, made a statement on the subject. He explained that the upcoming upgrade will overcome one of the most important bottlenecks: blockchain scaling.
The goal of an intelligent filing system is to provide effective state management to help scale blockchains. Also organizing information efficiently. However, projects such as Bitcoin and Ethereum use a tree data structure, or Merkleized storage, in their blockchains. Firewood is designed to read Merkleized blockchain state under heavy loads.
Firewood’s difference
Unlike other blockchain database management systems, Firewood does not rely on public key-value stores such as LevelDB or RocksDB. Ava Labs, the company behind Avalanche (AVAX), said it will evaluate Firewood’s performance compared to other blockchain databases in the coming months.
Update work continues for Firewood. On the other hand, from a big picture perspective, this is a bullish development for the Avalanche ecosystem. However, the measurements on the chain do not say so at all. Accordingly, it reveals a not very optimistic outlook that could add wind to the AVAX price.
AVAX price will take a hit
According to Token Terminal statistics, there is an important situation. The number of addresses actively interacting with the Avalanche network has decreased over the past month. Accordingly, when we look at it as cryptokoin.com, this indicates a capital flight. The 30-day Active User average is down approximately 33%. Additionally, its 30-day revenue has also taken a hit with the decline in activity. AVAX’s revenue from fees and other sources for the period decreased by 45%.
Annualized fees for the chain were $3.65 million, a decline of over 47%. With the network’s key metrics declining, AVAX price, which is trading at $9.35, is likely to decline further.
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