Web3 Automation Provider Sees 900% Demand Increase

Ava protocol reported a 900% surge in demand for its blockchain automation solution.  The EigenLayer AVS offers Web3 infrastructure to support cross-chain automation, enabling composable autonomous transactions and allowing developers to deploy dApps rapidly.

The protocol records $3 billion in restaked assets since launching on EigenLayer’s mainnet four months ago. Ava Protocol’s operator Total Value Locked (TVL) reportedly spiked to $1.7 billion worth of Ethereum (ETH) within two weeks of its launch.

Additionally, the report reveals it has gained over 11,500 unique wallets and reached over 1,000 daily automated transactions running on the testnet.

The Web3 automation provider’s solution “super-transactions�aims to offer “seamless, private, and composable automation�for any smart contract function, eliminating the need for developers to write code.

Ava Protocol simplifies blockchain for developers and non-technical users. With the automation provider’s solution, users can access enhanced privacy, composability and significantly lower transaction costs.

The Future Of The Blockchain Automation Landscape

Chris Li, the founder of Ava Protocol, remarked on how super-transactions “are transforming the landscape of blockchain automation�by assisting creators to build more efficiently and simplifying the creation of Web3 applications:

By offering no-code, composable automation, we empower developers and creators to build more efficiently, whether they’re working in DeFi, NFTs, or RWAs. Our platform brings simplicity to complex processes, making them accessible to non-technical users through intuitive tools like our drag-and-drop interface, or our AI-powered automation copilot.

The Web3 infrastructure provider recently partnered with Soneium, Sony’s Ethereum Layer 2 (L2) blockchain, to bring automation to the network through Soneium Spark’s Incubation program. The collaboration seeks to “simplify blockchain�for Soneium developers and users with limited technical knowledge by executing transactions and smart contracts based on predefined conditions.

The partnership is set to enable creators and developers in Sony’s blockchain to monetize their work with intent-base, no-code automation, allowing them to tokenize Real-World Assets (RWA) and unlock fractional ownership alongside new distribution methods.

Moreover, Ava Protocol has also partnered with other EigenLayer AVSs to offer its automation services, including fixed-rate lending dApp Term Finance, quantitative trading DEX Lhava, RWA ecosystem Zoth, and restaking rewards provider Hourglass.

Ava Protocol expects to issue its token following its recent development and collaborations in the following months. The automation provider seeks to “cement itself�as a leading player in the sector by launching its cryptocurrency in the next two to three months.

At the time of this writing, further details about the token’s launch have not been revealed.

In a statement released through X, the Eigen Foundation highlighted the importance of this milestone: “We’re thrilled to announce the unlocking of the EIGEN token, a big step for the Eigenlayer ecosystem. This opens up new possibilities for open innovation, shared security, and participation across the network.”

They added that the unlock enables developers to build Actively Validated Services (AVSs) using EIGEN staking, enhancing protocol security and functionality. “The unlock of EIGEN marks the beginning of broader engagement. It acts as a catalyst for economic expansion, governance, and protocol development, driving growth and strengthening the decentralized ecosystem,�the Eigen Foundation added.

Buy Or Sell Eigenlayer (EIGEN)?

Market sentiment has been mixed on the first day of trading. Lookonchain reported significant purchases by whales, indicating strong interest from large-scale investors. One transaction involved an address purchasing 383,672 EIGEN at $4.05, totaling $1.55 million. Another address spent 1.31 million USDC to acquire 318,651 EIGEN at $4.10.

2 whales bought 702,324 $EIGEN($2.86M) in the past 4 hours!

0x2dcd spent 588 $ETH($1.55M) to buy 383,672 $EIGEN at $4.05.//t.co/QtcgQQJfSR

0xb112 spent 1.31M $USDC to buy 318,651 $EIGEN at $4.1.//t.co/qy5SoAuuru pic.twitter.com/Dzt65tYwJT

�Lookonchain (@lookonchain) October 1, 2024

Despite these buys, not all activity has been bullish; notable crypto whale GCR was reported to have sold a significant amount of EIGEN shortly after the unlock, depositing over 250,000 EIGEN into Binance. “GCR (@GiganticRebirth) claimed an airdrop of 253,946 EIGEN($1.06M) through 7 wallets and deposited all of it into Binance 40 minutes ago. #GCR�Lookonchain reports.

Crypto analyst Aylo offered a comparison of EIGEN’s market performance relative to other tokens via X: “EIGEN launched exactly in line with the pre-market price, sitting at $7B FDV. A few coins with bigger FDVs than EIGEN currently include OP ($8B), ONDO ($7.9B), UNI ($7.7B), FIL ($7.6),BCH ($7.2B),” he noted, suggesting that EigenLayer’s role in Ethereum’s ecosystem could be a critical factor in its valuation.

“EigenLayer is the innovation on Ethereum this cycle, and has had more coverage than almost anything else in the EVM in the last year. Really does feel similar to the conditions that TIA launched in. Does the PA play out the same way? No unlocks for a year too��Aylo noted.

Daan Crypto Trades, another prominent analyst, remarked on the market dynamics: “EIGEN Launched today. I think many market participants will be watching the price action develop to gauge overall market strength and sentiment. So far, price has held up, and even gone up slightly, even though there’s a lot of airdrop participants selling their tokens.”

He speculated on the potential for EIGEN’s market valuation to rise, indicating that the current conditions might be more favorable than in recent months. “If the market keeps trending from here I’m assuming EIGEN can go much higher than $7B FDV. Earlier this year it was estimated to launch at $20B+ (in better market conditions). Having said that, I don’t own any right now but I’d definitely be a buyer at $2-3 and I think many would. So not sure if it gets there at all if it doesn’t do so in the first few days of airdrop selling,â€?Daan concluded.

At press time, EIGEN traded at $4.127.

Is Ethereum Superior To Solana?

While the prominence of Solana is evident, Sreeram Kannan, the founder of EigenLayer, argued in a post on X that Solana prioritizes low latency and global node synchronization over other core features.

On the other hand, Ethereum took a different approach, emphasizing the need for stability and decentralization. Accordingly, in Kannan’s view, the first smart contracts platform offers a more comprehensive solution than its competitor. Currently, EigenLayer manages over $12 billion worth of assets on Ethereum, according to DeFiLlama.

Although Kannan acknowledges the efficiency of Solana, the founder nonetheless picks out some limitations now that the platform is building a global state machine. At the top of the list is the blockchain’s sacrifice of programmability and verifiability.  

Meanwhile, the EigenLayer lead thinks Ethereum is excelling, especially on performance, thanks in part to the success of rollups and the resulting wild adoption. This off-chain solution provides instant confirmation and is more performant than web2 applications.

At the same time, Ethereum is programmable, enabling EigenLayer to add more features like an arbitrary decentralization of verifiable tasks. As a result, the liquidity restaking platform, Kannan adds, has enabled cloud-scale programmability.

Layer-2 Platforms Thriving: Why Is ETH Struggling?

The co-founder of Celestia, Mustafa Al-Bassam, also appreciates what Ethereum brings to the table and is absent or underdeveloped in other networks. In a post on X, Al-Bassam said the first smart contracts platform is “underrated.”

Specifically, the co-founder lauded the thriving rollup ecosystem in Ethereum, saying it is “by far the largest and most successful.” As of September 30, L2Beat data shows that the layer-2 ecosystem in Ethereum manages over $38 billion, with Arbitrum and Base among the largest platforms.

Even as Base and other Ethereum layer-2 platforms draw activity, ETH, the native currency, is struggling for momentum. The daily chart shows bulls have yet to break above $2,800, although support remains at $2,400.

Dwindling upside momentum has been partly blamed on the proliferation of layer-2 scaling solutions. The network becomes inflationary as more activity is re-routed off-chain, and enhancements like Dencun are activated to make layer-2 transactions even cheaper. Looking at Ultra Sound Money, fewer ETH are not being torched.