Analyzing the Distribution and Growth of AVAX Stake in the Avalanche Ecosystem
Avascan is not only an explorer, but it is also a powerful data analytics tool that allows us to gain valuable insights into the Avalanche ecosystem.
The Avalanche ecosystem has gained significant attention and recognition as a high-performance blockchain platform. As more participants join the network, it becomes crucial to examine the distribution and growth of AVAX stake to understand the dynamics and potential implications for the ecosystem’s development. Moreover the distribution and growth of AVAX stake in the Avalanche ecosystem are key factors to assess the network’s decentralization and adoption. This analysis aims to provide insights into stake distribution, validator participation, hosting preferences, and delegation trends.
Validator Analysis
As of today, there are 1256 active validators in the network. By graphing these validators, we can evaluate their geographical distribution, as depicted in the image below. It is evident that the majority of nodes are concentrated primarily in America, followed by nodes in Europe, and finally, a smaller presence in Asia.
Below is a table providing the quantitative data by continent:
+---------------+---------+
| Continent | Nodes |
|---------------+---------|
| North America | 539 |
| Europe | 411 |
| Asia | 151 |
| Oceania | 10 |
| South America | 7 |
+---------------+---------+When representing the distribution of the amount of AVAX stake held solely by validators, we observe a trend that mirrors the distribution of nodes. The United States alone holds 32% of the stake, followed by Germany with approximately 15% and Japan with 10%. This indicates a similar concentration of stake as seen in the node distribution.
Another analyzed factor is the hosting location of the nodes, whether they are privately hosted or rely on hosting providers. In the image below, it can be observed that over the 45% of the nodes utilize AWS (Amazon Web Services) as their hosting service.
Lastly, it is worth analyzing the usage of different versions of Avalanche. It is noteworthy that nearly all nodes are using the latest major release, version 1.10. This indicates a strong adoption of the latest updates and features provided by the Avalanche network.
When considering only the minor release of 1.10.X, it can be observed that approximately half of the nodes have been updated to the latest version Cortina.2–1.10.2.
Delegator Analysis
Let’s now examine the data related to the stake of delegators. We will start focusing the quarterly trend of AVAX staked. What can be observed is a consistent growth in delegated AVAX until the last quarter of 2022. As for the first quarter of 2023, it follows a similar pattern to the previous quarter, but there seems to be a noticeable decline that could be significant for Q2–2023.
Looking at the cumulative annual delegated amount, a steady increase from year to year is observed. However, it is worth noting that the rate of increase may vary between years. In 2021 there was a significant growth compared to the 2022. Furthermore, as we are halfway through 2023, considering the data available up until 2023–05–30, we can anticipate that by the end of the year, the delegated AVAX amount will be slightly higher than the previous year, assuming a linear growth trend.
Looking at the scatter plot of delegated AVAX vs. time, we can indeed observe some interesting patterns. Initially, there was a significant spike in early 2021, indicating a surge in AVAX delegation. Following that, the trend shows a relatively steady and linear growth from Q3–2021 to Q2–2023.
However, it is worth noting that the recent observations suggest another spike in the delegation of AVAX. This spike may indicate a sudden increase in interest and participation in AVAX staking during the current period.
It is important to clarify that the scatter plot takes into account the start and end dates of the validation period, meaning that AVAX can be staked even for a single day. This is why the scatter plot differs from the cumulative graphs discussed earlier. The scatter plot provides a more granular view of AVAX delegation over time, capturing shorter-term fluctuations and highlighting specific points of delegation activity.
Another interesting graph to consider is the average delegation period expressed in the average number of days. It can be observed that initially, delegators chose to lock their AVAX for approximately one year. However, there was a gradual decrease in the delegation period, followed by a sharp drop in the 2021-Q2. Eventually, the delegation period stabilized around 50 days.
An additional valuable data to analyze is the geographical distribution of delegations, as depicted in the following graph, here are considered only the active delegation with and end time below 2023–06–12.
What stands out is the predominant factor of the United States, with the highest concentration.
It is important to analyze these geographical distribution patterns to understand the regional preferences and trends in AVAX delegation.
Here is a table with a data summary:
+----------------------+---------------+
| country | AVAX |
|----------------------+---------------|
| Ireland | 1.4 million |
| France | 1.9 million |
| Japan | 2.4 million |
| Germany | 3.9 million |
| United States | 26.7 million |
+----------------------+---------------+Another meaningful comparison can be made by considering the continents. In this case, we find that the Americas are in the first position, followed by Europe with approximately half the amount of AVAX.
+------------------------+----------------+
| continent | AVAX |
|------------------------+----------------|
| Africa | 1.1 million |
| Oceania | 1.2 million |
| Asia | 6.8 million |
| Europe | 11.1 million |
| North America | 27.9 million |
+------------------------+----------------+An additional significant chart that we can analyze is the distribution of the number of nodes, rather than the distributed stake. The chart for this is shown below.
Expanding on this, it can be observed that the distribution of nodes across different regions is consistent with the distribution of stake, with no significant variations.
Conclusions
In conclusion, the analysis reveals several key insights about the Avalanche ecosystem. Firstly, the number of active validators currently stands at 1256, with a significant concentration in North America. Europe also boasts a substantial number of nodes, accounting for approximately 36% of the total. This distribution highlights the importance of these regions in the network.
When examining the stake distribution, a similar trend emerges, mirroring the distribution of validators. The United States holds the highest stake, followed by Europe, while other regions such as Asia have a smaller share. The total amount of AVAX staked is around 200M, indicating a considerable level of participation by stakeholders, considering that the total supply is nearly 700M.
Additionally, the data shows that nearly the 45% of the nodes rely on the Amazon Web Services (AWS) platform for hosting, while a negligible amount is hosted on private networks. This preference for a cloud-based hosting solution could lead to decentralization problems.
Furthermore, the analysis of the delegator data reveals a consistent growth in staked AVAX since the launch of the Avalanche ecosystem. Currently, approximately 40M AVAX are delegated by users. The staked AVAX graph exhibits an initial boost in mid-2021 and appears to be experiencing another surge in the recent period, indicating an increasing interest and participation in staking activities.
Moreover, the average delegation period has been trending towards a duration of around 50 days. This suggests that delegators prefer to have their AVAX tokens liquid and accessible at regular intervals, potentially indicating a desire for flexibility and the ability to respond to market dynamics.
Finally, the geographic distribution of delegations and staked AVAX aligns with the pattern observed in the node distribution. The United States retains the highest concentration, followed by Europe. This concentration underscores the need for efforts to encourage broader participation and a more even distribution of stake across regions.
Overall, the analysis showcases a growing ecosystem with promising adoption and engagement. While challenges such as centralization and uneven distribution persist, the data suggests a positive trajectory, indicating the potential for a more decentralized and widely adopted Avalanche ecosystem in the future.
References:
