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- #Gate 2025 Semi-Year Community Gala# voting is in progress! 🔥
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Avalanche's (AVAX) Transaction Costs Decreased by 75 Percent, Transaction Volume Increased! Here's Why!
Avalanche's (AVAX) upgrade in December, called Avalanche9000, resulted in a 38% increase in daily activities on the network by significantly reducing transaction costs.
Avalanche Blockchain Upgrade, Increasing Transactions by Reducing Fees by 75%
According to data from Flipside and Bitquery, since the upgrade was released on December 16, transaction fees, commonly known as gas fees, have decreased by an average of 75%. The daily transaction count has increased to an average of 354,691, reflecting increased network usage.
Avalanche, a proof-of-stake blockchain focused on DeFi and the fifth largest smart contract platform by market capitalization, operates a multi-chain structure:
The upgrade included seven improvement proposals, and ACP-125 made one of the biggest impacts by reducing the basic smart contract fee on the C-Chain from 25 nAVAX to just 1 nAVAX. (one nAVAX is one billionth of an AVAX).
In addition, the validator fee, previously set at 2,000 AVAX, was replaced with a monthly subscription model ranging from 1 to 10 AVAX, making it easier for new projects to launch Layer 1 (L1) protocols on Avalanche.
Changes are part of a broader effort to increase purchasability and adoption.
Ava Labs' lead protocol architect Stephen Buttolph had previously explained in an interview that the goal was to reduce costs across the entire Avalanche technology stack, from C-Chain fees to capital requirements for validators.
With cheaper transactions and easier validator entry, the Avalanche network is now positioned as a more competitive and scalable smart contract platform, attracting more activity from both developers and users.