Validators process transactions and receive validator rewards (supply-side fees).

AVAX is a smart contract platform for decentralized applications (a blockchain). Avalanche was founded by Emin Gün Sirer and launched in 2019.

AVAX holders own and govern the protocol. They currently take (burn) all of the total transaction fees paid by users (revenue). AVAXs investors include a16z, Polychain, Galaxy Digital, etc.

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Blockchains (L1)

Avalanche

# Avalanche Transactions per second Methodology

## 1. Overview

The transactions per second (TPS) metric measures the average number of transactions processed on the Avalanche blockchain per second over a given day. This metric provides insight into network throughput and activity levels by taking the total unique transactions in a day and dividing by the number of seconds in that day (86,400). The calculation aggregates all on-chain transactions regardless of type or complexity, providing a comprehensive view of network utilization.

## 2. Data sources

- **Avalanche blockchain transaction records**: Raw transaction data from the Avalanche C-Chain containing transaction hashes, block timestamps, gas usage, sender and recipient addresses, and gas pricing information
- **Account labeling data**: External data sources providing human-readable labels and classifications for blockchain addresses to distinguish between contracts, protocols, and unlabeled addresses
- **Configuration data**: Chain availability filters and system parameters including the seconds-per-day constant (86,400)

## 3. Step-by-step calculation

### Component A: Transaction data extraction
- **Purpose**: Extract and standardize raw Avalanche transaction data with essential fields
- **Logic**: Retrieve all transactions from Avalanche blockchain records, extracting distinct transaction hashes, block timestamps, block numbers, sender and recipient addresses, gas usage amounts, and effective gas prices. Gas prices are converted from wei to AVAX units by dividing by 10^18. Each transaction is tagged with the Avalanche chain identifier and WAVAX token address as the native gas token
- **Key fields**: `transaction_hash` for unique identification, `block_timestamp` for temporal aggregation, `from_address` and `to_address` for transaction participants, `gas_used` and `effective_gas_price` for fee calculations

### Component B: Daily transaction aggregation
- **Purpose**: Count unique transactions per day and categorize by destination address
- **Logic**: Group transactions by day using timestamp truncation to daily boundaries. For each day and destination address combination, count approximate distinct transaction hashes to handle potential duplicates efficiently. Transactions are classified with standard blockchain identifiers including chain ID as 'avalanche', market sector as 'blockchains_l1', and business segment as 'blockchain'
- **Key fields**: `timestamp` truncated to day level, `transaction_count` using approximate distinct counting on `transaction_hash`, `to_address` for destination categorization

### Component C: Account label enrichment
- **Purpose**: Enhance transaction data with human-readable destination labels
- **Logic**: Join daily transaction aggregates with account labeling data using recipient addresses. Addresses with available labels receive their designated titles (typically contract or protocol names), while unlabeled addresses are categorized as 'Unlabeled'. This provides context about transaction destinations and helps distinguish between different types of network activity
- **Key fields**: `contract_name` derived from account labels or defaulted to 'Unlabeled'

### Final aggregation
- **Combining components**: Sum all daily transaction counts across all destination addresses to get total daily transaction volume for the Avalanche network
- **Currency conversion**: Not applicable for this count-based metric
- **Time aggregation**: Transactions are aggregated to daily boundaries using timestamp truncation, with each day representing a complete 24-hour period
- **Final calculation**: Divide the total daily transaction count by 86,400 (the number of seconds in a day) using safe division to calculate the average transactions per second for each day. The result represents the sustained TPS if transactions were evenly distributed throughout the day

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Average confirmed user transactions added per second.

AvalancheAVAX

Transactions per second

Transactions per second

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