Avalanche builds more and more momentum as a living and colorful decentralized trading hub. Concentrated activity occurs in stablecoin swaps, Bitcoin markets, and AVAX-stablecoin pairs, now very much on public display. While on-chain volumes keep sliding nicely along, who should emerge as the dominant player in this developing ecosystem is becoming increasingly clear. A rush to not just make good tokens but also launch them in sensible and sensible-to-the-market ways is one new trend. Another is trading on the DEXs, which are clearly in competition with each other and now also with centralized trading venues. Stablecoins and AVAX Drive the Majority of Trading Volume About 85 percent of decentralized exchange (DEX) volume on Avalanche comes from three source types: swaps between stablecoins, Bitcoin trading pairs, and AVAX-stablecoin transactions. This concentration of trading activity is a good proxy for what it’s like to trade on Avalanche DEXes. It tells us what types of tokens we should expect to find with decent liquidity when using a DEX on Avalanche. Between AVAX-stablecoin pairs, AVAX-USDC is still the top in terms of volume and user engagement. However, two newer entrants to the stablecoin market, MXNB and AUSD, have been making strides in amassing market share. This seems to suggest that users are beginning to explore stablecoin alternatives with more frequency in a diversifying ecosystem. Swapping stablecoins is a large part of the DeFi experience on Avalanche. If you look inside any DeFi protocol built on Avalanche, you will find stablecoin swaps. Why? Because stablecoin swaps are the DeFi primitive with which you can build everything else—a bit like how in traditional finance, treasury bills serve as the foundation for more complex (and sometimes riskier) financial instruments. And what makes this swap experience particularly nice on Avalanche is that you can do it with very little slippage over very large amounts, which, as you will see, is very relevant to some not-so-simple strategies. Pharaoh and LFJ Dominate, While Uniswap Follows In terms of where DeFi users on Avalanche are trading, the answers aren’t too surprising. Pharaoh Exchange and LFJ are not only the chain’s top DEXs; they generate nearly all of the trading volume on it. Collectively, these two exchange platforms account for just about 85 percent of the volume on which DeFi users on Avalanche are trading. In fact, the top two DEXs on Avalanche are said to be responsible for about as much volume as can be found anywhere on the chain. LFJ, in particular, has the strong user base of BTC-relevant pairs. However, we see a more evenly distributed playing field now. Our near-term data indicates this volume distribution has been captured relatively evenly among Pharaoh, LFJ, and even Uniswap, which now captures approximately 10% of Avalanche’s total DEX volume. This shift in volume capture seems to indicate a more evenly distributed liquidity ecosystem for BTC-relevant pairs. Volume does now seem more evenly split. Our near-term data capture indicates this. When it comes to the liquidity of AVAX-stablecoin, Pharaoh and LFJ are in a dead heat, both offering deep pools and juicy incentives. They are, in fact, positioned in what seems to be an ongoing competition for mindshare and dominance of trading volume in what are, at this point, some of the most essential trading pairs on Avalanche. Token Launchpads See Explosive Growth as Ecosystem Expands Avalanche has experienced a notable increase in token launch activity. The number of new assets entering the market has seen an upsurge, with one of the launchpads, The Arena, witnessing a truly incredible day in May when it was hosting over 6,000 new token launches. This figure not only speaks to the ease of use and accessibility of Avalanche as a protocol upon which to build and launch new assets but also to the clear audience interest in community-based projects and experimental finance. 2/ Around 85% of DEX volumes on Avalanche are made up of the following pairs: Stablecoin Swaps, Bitcoin trading, and AVAX-Stablecoin swaps. pic.twitter.com/PSnbgMewKi — Blockworks Research (@blockworksres) May 27, 2025 Although numerous tokens launched on Avalanche may not be valuable in the long term, the large number of launches and the sheer volume of tokens getting launched is an indicator of an expanding ecosystem. Fast and cheap transactions are great for many use cases, and Aleth’s proof-of-stake protocol is said to offer both. This makes Avalanche suitable for synthetic assets, stablecoins, and many other expansive use cases. As Avalanche moves forward, it continues to build its DeFi territory with a few core themes: the hegemony of stablecoin and AVAX-based trading, the two-horse race of LFJ and Pharaoh Exchange, and the crazy-fast launches of new tokens. With DEI, the newest stablecoin, rapidly gaining traction and a host of other projects joining the fun, Avalanche is in very good shape to hold onto its relevance in a multichain world. And whether you’re trading through old familiar pairs or using one of a handful of new tokens, it’s an economy that seems like it can’t help but fire on all cylinders. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
