#16 Avalanche Subnets are winning
In this post, we will deep dive into Avalanche subnets
Avalanche Subnets are leading in gaming and RWA adoption.
2800+ subnets are live on the Testnet.
28+ subnets are live on the Mainnet with validators.
In this post, we will deep dive into Avalanche Subnets.
Introduction to Subnets
Avalanche built a scalable blockchain infrastructure with high throughput, sub-sec transaction finality, and a modular design at its core. They also built HyperSDK that allows other projects to launch their own sovereign chains utilizing Avalanche tech stack.
Avalanche also built a cross-chain messaging protocol to support interoperability between different sovereign chains. These sovereign chains are known as subnets. Developers could launch subnets based on their use case requirements.
They get customization options where they could choose gas fees, governance, security mechanisms, privacy, etc. Since Avalanche also supports private subnets, enterprise clients love that, and we've been seeing great progress on enterprise adoption for subnets.
Adoption
Projects need to become a validator on the Avalanche P Chain, which has a 2000 AVAX minimum staking requirement. So, the growing ecosystem of subnets here also helps the demand side of $AVAX. There are currently 2800+ subnets running on testnets.
More than 100 projects are already live on the mainnet, and 28+ projects are live with validators. Avalanche subnets also have options to borrow security from the Avalanche P Chain and use $AVAX as a gas token, so some of them will utilize that too
In the end, it all depends on the use case requirements. Gaming requires speed and higher throughput, so they're even okay with launching a subnet with 5 validators, and that's what we're seeing in gaming subnets.
Another use case that I think is a perfect fit for subnets is RWA. Major institutions and banks are in custody of real-world assets, and if they wanted to tokenize them, they would look for a permissioned and highly scalable infrastructure; subnets serve that purpose for them.
When you compare subnets with L2 tech stacks, you will find similarities in terms of offerings. The only major difference, which is also considered a decision point for projects, lies in the security dependency and high throughput based on use case requirements.
I think the plot is already set, so let's get straight to the list of the top 10 projects in the Avalanche Subnets ecosystem that I find exciting based on use case and onchain tractions.
Gaming Subnets
1) Merit Circle
MeritCircle, a Gaming DAO with a $95M worth treasury, launched the Beam subnet last year. It's currently the most popular subnet on Avalanche. They're planning to launch a couple of games on the Beam Subnet this year.
2) DeFi Kingdoms
DeFi kingdoms is a fantasy RPG world game; they're running an Avalanche subnet with 7 validators and have over 2K daily active users, with a daily transaction count of 20K.
3) Sharpnel
Shrapnel is building an AAA shooting game. They're also the most awaited web3 game launch for this year. They launched an Avalanche subnet with 10 validators.
An Podcast Interview with Sharpnel Founder
4) Blitz
Blitz is a popular gaming companion app with over 30M users. They've launched an Avalanche subnet, which will be used for hosting esports tournaments, launching NFT collections, and handling in-game payments. $AVAX will be used as native gas token for the Blitz Subnet.
5) Mirai Labs
Mirai Labs, the gaming studio behind the web3 horse racing game Pegaxy, also announced an Avalanche subnet where they plan to move their entire gaming ecosystem from Polygon to their own subnet.
DeFI Subnets
6) Meld Finance
Meld Finance is building a non-custodial money market platform with the integration of fiat currencies on six blockchains. They've also launched an Avalanche subnet with three validators.
7) Dexalot
Dexalot is an order book DEX that provides 1-2 seconds transaction finality. They're running an Avalanche subnet with 10 validators, and they have 200 unique daily active users as of now.
8) Hubble Exchange
Hubble Exchange built a decentralized order book perpetual exchange with cross-margin support. They're also planning to launch an Avalanche subnet soon.
Evergreen Subnets
Avalanche has launched Evergreen subnets to support financial institutions and enterprises that are looking to launch RWA-based use cases in a permissioned environment.
9) Intain Markets
Intain, a structured finance platform with $5 billion in assets, launched an on-chain marketplace for on-chain asset-backed securities on an Evergreen Avalanche subnet.
Infra Subnets
10) Nodekit
Nodekit is building a shared sequencer L1 blockchain called SEQ on an Avalanche subnet to decentralize transactional sequencing for L2 rollups.
That's it from this thread. I'm not sharing any financial advice here. Use the information I shared above for educational purposes only.