Avalanche epic update completed! Lower entry cost for institutions? Explosive growth expected next year

Subnet transformation, Avalanche9000 brings a brand new Layer1 landscape

After the founder of "Fat Penguin" announced the establishment of Abstract for the consumer market, another major news has also sparked discussion in the crypto community: Avalanche officially launched the Avalanche9000 major network upgrade with the codename "Etna". The official hailed it as the "largest-scale technological transformation in history", aiming to make it easier and more cost-effective for enterprises and development teams to build Layer1 blockchains (or "subnets"). If this direction is successfully implemented, there may be a "explosive growth" of a large number of new Layer1 projects in 2025, making Avalanche the center stage of the next market frenzy.

Source: Avalanche Avalanche officially launched the major network upgrade of Avalanche9000, code-named 'Etna'.

Avalanche has always been known for its "high speed and low latency" advantages, but in the past, the Subnet architecture required nodes to stake 2,000 $AVAX (market price of about $100,000) to run their own chain, which was quite expensive for many small and medium-sized teams. With the implementation of the Avalanche 9000, the new proposals, ACP-77 and ACP-125, are expected to reduce these thresholds to approximately $1.3 $AVAX (approximately $64) per month, reducing initial operating costs by more than 99.9% compared to traditional models. Developers no longer have to choose between "Ethereum mainnet or self-built public chain", but can choose the lightweight Avalanche Layer1 solution that is compatible with the EVM ecosystem. "Changing from 2,000 $AVAX staked to 1.3 $AVAX per month", many developers describe it as an "epic reform", and expect a large number of new projects to be poured in within a few months of the new system going live.

The transaction cost is more affordable, and Etna's update is highly anticipated.

The 'Etna Upgrade' not only reduces the hardware and capital expenditure required for validators, but also includes the ACP-125 proposal, which lowers the Base Fee floor on the mainnet C-Chain from the original 25 $nAVAX to 1 $nAVAX. In other words, when users send transactions on the chain, the cost can be closer to the 'unnoticed' level during low network loads, which is a great boon for users who like to operate DApps or conduct DeFi transactions on Avalanche. According to official data, the adjustment of the Base Fee is close to a 96% reduction, creating a more competitive trading environment.

Image source: Avalanche Base Fee adjustment close to 96% reduction

The Etna upgrade also introduces a dynamic fee mechanism to the P-Chain, changing the previous fixed fee simple mode. By adjusting the fee rate to cope with large transaction volume or high demand peaks, Avalanche hopes to further resolve the problem of soaring fees during network congestion in the past. On the other hand, the increased Layer1 transaction types and cross-chain information (ICM) standards also provide more innovative flexibility for various upcoming decentralized applications.

Institutional favor, 2025 ecological or explosive expansion

The Avalanche team has stated that this new approach can encourage developers from different industries to use Avalanche technology to build subnets or Layer1 blockchains, and expects a large number of new projects to go live on the mainnet in 2025. Previously, Avalanche also announced the completion of a $250 million token sale, led by Galaxy Digital, Dragonfly, and ParaFi Capital, attracting high industry attention. Sufficient funding combined with technological innovation implies that the Avalanche ecosystem may usher in a wave of large-scale construction and service explosions.

It is worth noting that the upgrade also optimizes the cross-chain communication function ACP-118, assisting subnets (Layer1) and the main network to more efficiently verify events and information. It accelerates the landing of various scenarios such as DeFi, NFT, games, and tokenization of real assets; especially in the past, the threshold for deploying a dedicated chain was too high, but now it is as low as $1.3 AVAX per month, giving many originally hesitant enterprises and institutions the opportunity to try going on-chain.

Facing the upcoming new ecosystem, most market analysts are optimistic about the development trend of Avalanche next year. If the costs and operational barriers are significantly reduced, coupled with the endorsement of mainnet consensus and security, the willingness of institutional funds to enter the market will significantly increase. In the future, in industries such as finance, gaming, social, prediction markets, etc., there may be a competition to establish their own Layer1 to provide more efficient and customized blockchain services. At that time, Avalanche will also focus more on the 'multi-chain ecology' strategy.

Avalanche's next step is a new multi-chain pattern

The upgrade from Avalanche9000 reveals Avalanche's attempt to attract more institutions and developers to join the ecosystem with low thresholds and high flexibility. For blockchain entrepreneurs, traditional enterprises, or other large capitals who are still observing, this revision does bring expected opportunities. Under the 'Etna' reform drive, Avalanche will also transition from the existing subnetwork architecture to a truly multi-chain world, enabling the ecosystem to expand at a faster pace.

Source: Avalanche Avalanche, in industries such as finance, gaming, social, and prediction markets, are competing to establish their own Layer1 to provide more efficient and customized blockchain services.

The 'decentralized finance + consumer entertainment' solution in the Avalanche ecosystem may be able to tap into unprecedented market space. Market participants expect that next year, Avalanche will have opportunities to excel in both technological applications and user growth. Whether it can successfully maintain its development dividends and ascend to the next bull market cycle has become a highly observed focus in the cryptocurrency community.

Further Reading Avalanche Chain welcomes its biggest upgrade! What did Avalanche 9000 do? Understand the development and impact Global consumption made easy with one card! Avalanche launches encrypted payment card, can Taiwan use it?

[Disclaimer] The market is risky, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, perspectives, or conclusions in this article are applicable to their specific circumstances. Invest at your own risk.

'Avalanche epic update completed! Lower entry cost for institutions? Explosive growth next year' This article was first published in 'Crypto City'.