Decentralized Exchange Pangolin's Trade Volume Crosses $1B Two Months After Launch
Pangolin (PNG), a community-driven decentralized exchange (DEX) that runs on the Avalanche blockchain, has surpassed $1 billion in total trade volume only two months since its launch.
What Happened: The DEXs rapid growth comes on the back of record-high gas fees on the Ethereum blockchain leading to an exodus of users from popular Ethereum-based DEXs like Uniswap.
For scale, the average price of a token swap on Pangolin costs around $1.19, whereas the same transaction would cost between $55 to $72 on Uniswap.
Why It Matters: Pangolin claims that in light of DeFi users being priced out of applications that are vital to secure participation in the ecosystem, over $120 million in assets have been migrated to Avalanche over the Avalanche-Ethereum Bridge.
The blockchain can also confirm over 4500 transactions in under a second, which is considerably higher than several existing networks.
“On Avalanche, transaction fees are burned, rather than added on as a tip for miners as we see in PoW systems. This creates a natural, deflationary pressure on the AVAX supply curve to benefit all holders and users within the Avalanche ecosystem,” said Emin Gün Sirer, founder and CEO of Avalanche.
Both the Avalanche blockchain and decentralized exchange Pangolin are a product of Ava Labs, a blockchain technology company backed by investment from Andreessen Horowitz, Initialized Capital, and Polychain Capital, and angel investments from Balaji Srinivasan and Naval Ravikant.
What Else: Pangolin’s native governance token PNG follows a unique token distribution model where 100% of its supply is given to users. At press time, the token was trading at $2.16. The price of Avalanche’s native token AVAX was priced at $31.16 at the time of writing, up 863% year to date.
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