Enclave Markets sees institutions coming to DeFi through fully encrypted exchanges
Avalanche Weekly Overview - Feb 12, 2025
Welcome to the Avalanche Weekly Overview. A one-stop-shop for the AVAX community to get up to speed on the Avalanche blockchain network’s latest updates, metrics, releases, insights, ecosystem developments and more. All in one place.
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Avalanche by the numbers
AVAX token price: $24.85 (-6.67%)
Max transactions per second: 190.33 (-69.17%)
Network’s 7-day total transactions: 27.48M (-0.37%)
Avalanche C-Chain daily txns: 302K (-31.3%)
DeFiLlama’s Avalanche TVL: $1.24B (-4.92%)
Top 3 Avalanche DeFi projects by TVL:
Benqi: $578.36M (-12.94%)
Aave: $549.92M (+0.31%)
LFJ: $127.67M (-0.21%)
These metrics are based on a 7-day time frame, unless noted otherwise.
Inside the network
🔺What we’re watching: Institutions, like many of us, are keeping an eye on crypto. For Enclave Markets, a Fully Encrypted Exchange (FEX) built on Avalanche, it sees the future of institutional adoption of web3 being shaped by encrypted trading, executives from the team shared on a recent livestream, alongside Ava Labs Co-Founder Emin Gün Sirer.
🔺Why it matters: Enclave Markets is honing in on creating a secure, efficient trading market for retail and institutional investors. Its FEX model combines centralized and decentralized trading benefits, while protecting against typical market makers methods that extract value from trading activity.
Enclave's architecture combines cryptographic protection with decentralized custody to create a “fair market place [that] also secures the privacy of the order flow.” Enclave Markets CEO David Wells said on the livestream.
Gün also highlighted the importance of trading on encrypted exchanges and keeping order flow private for both retail and institutions. It’s important to have “secure liquid markets” with institutions, so they can protect their strategies from getting “picked up on” by other market participants, he added.
Traditionally, market makers and brokers have had the advantage as the “middleman” in financial markets, making risk-free profit regardless of market conditions. Their role as the liquidity provider has allowed them to impact market movements, especially in low regulatory environments like crypto. In general, liquidations, stop loss hunting, front-running, MEV bots and many more strategies have extracted the maximum value from the traders on their platforms.
The platform operates within its Secure Enclave to prevent front-running and MEV, while protecting trading strategies through encrypted order flow. This ensures that no party, including exchange operators, can access sensitive trading activity.
The platform's dual components – Enclave Cross and Enclave Spot – work together to enhance the trading experience. Enclave Cross facilitates confidential OTC trades through a fully-encrypted crossing network that matches counterparties at the bid-ask midpoint, while Enclave Spot provides a spot market with instant liquidity and cryptographic safeguards.
For institutional participants, the platform offers integration with qualified custodians and maintains deep liquidity pools for efficient trading. Individual traders can also access these same features through web3 wallet connections, operating within the same secure framework.
🔺The big picture: Avalanche has had many developments in recent quarters across the ecosystem. The upgrade to Avalanche9000 saw a reduction of fees and enhanced developer experience for launching dApps, promoting more innovation in the ecosystem. The network has also experienced a 29.38% increase in stablecoins, adding $522.13 million in the past 30 days, according to DefiLlama data. These indicate rising activity and growth of assets across the network.
Enclave's deployment on Avalanche displays the network's ability to support this sophisticated financial infrastructure while maintaining secure decentralization. It also helps further bridge traditional finance and DeFi with the rising institutional adoption of digital asset trading.
As demand for digital asset markets grows, the need for institutional-grade trading with high levels of privacy, without market manipulation are important.
“Soon commodities will be tokenized, equities, foreign exchange [and] real estate,” Wells said. “As tokenization happens, our marketplace model will significantly grow into those other asset classes.”
Scaling the ecosystem
Top 3 Avalanche games by 7-day total txns:
Gunzilla Testnet: 15.87M (-7.65%)
Pulsar: 13.7M (+5.91%)
Defi Kingdoms: 4.7M (-1.35%)
GoGoPool’s $ggAVAX token is now available on Folks Finance, a cross-chain money market, as a collateral to use or borrow stablecoins or AVAX, while gaining yield
Joepegs, the NFT marketplace built by LFG, has integrated into Splenium, a DeFAI copilot on Avalanche
Benqi Finance’s $sAVAX asset is the most popular deposit on Yield Yak’s Milk Vaults, with over 75% of the total $3.5M TVL
COLONY has over 65.6M in staked $CLY tokens, up about 10% in the past 6 months
Active L1s: 51
L1 validators: 280
Total L1 validators: 1,457
Total blockchains created in the Avalanche network: 54
Total staked across Subnets: 461,374 AVAX
Distribution of L1s by category. Source: Snowpeer
Note: Avalanche’s subnets have been renamed to Avalanche L1s as of July 29.
AVAX community wins
Join the Gaming Night with Avalanche Foundation and The Pit Game on an X livestream
Check out this post on Avalanche L1’s recent web3 gaming wins, including 1.2B in total transactions and 170K daily average transactions
MapleStory’s head of strategy shared a thread explaining how game developers can rethink virtual economies and the role of dynamic pricing
Speaking of gaming economies… BloodLoop’s game is launching soon, read this rundown by Twitch Streamer eeelistar on how gamers can own a piece of its in-game economy and mint them here
Avalanche Archives
Here’s Avalanche-based articles that made headlines this week.
Listen to the Tokenized Podcast\ episode with Ava Labs Chief Business Officer John Nahas, diving into stablecoins, Avalanche’s institution expansion and more
Swedish digital asset manager launches Avalanche, Cardano ETP on Nasdaq Helsinki (Cointelegraph)
Kite AI introduces AI-driven layer-1 blockchain on Avalanche (Cointelegraph)
Check out the Avalanche blog for more updates.
Join in the fun
Want to dive deeper into Avalanche?
Buy your tickets to Avalanche Summit in London from May 20-22
In Hong Kong? GUNZ, a blockchain built by Gunzilla Games, is hosting an event on Feb 17 at 7:30PM – sign up here
Find the latest Ava Labs job postings here
And check out the Avalanche Ecosystem Job Board for other companies building in the network
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.