which can follow custom rules. Data on Avalanche Layer 1 activity is widely published and relatively consistent across major analytics sources. By contrast, many non-core blockchains use their own explorers and data interfaces, and some do not publish standardized metrics, which makes ecosystem-wide activity harder to report. As a result, publicly available analytics for categories that commonly use non-core blockchains (e.g., gaming and certain media apps) can appear limited, fragmented, or not directly comparable to Avalanche Layer 1 metrics. As of December 31, 2025, approximately 950 monthly active open-source developers reportedly contributed to Avalanche ecosystem repositories. Overview of the Avalanche Network’s Operations In order to own, transfer or use AVAX directly on the Avalanche Network (as opposed to through an intermediary, such as a custodian), a person generally must have internet access to connect to the Avalanche Network. AVAX transactions may be made directly between end-users without the need for a third-party intermediary. To prevent the possibility of double-spending AVAX, a user must notify the Avalanche Network of the transaction by broadcasting the transaction data to its network peers. The Avalanche Network provides confirmation against double-spending by memorializing every transaction in the Avalanche Blockchain, which is publicly accessible and transparent. This memorialization and verification against double-spending is accomplished through the Avalanche Network validation process, which adds “blocks” of data, including recent transaction information, to the Avalanche Blockchain. Unlike other blockchains that rely solely on sequential production of blocks through PoW or PoS mechanisms, however, the Avalanche Network introduces the Primary Network and Avalanche Layer 1 division, allowing for parallel processing and validation of transactions. AVAX Spot and Futures Markets AVAX spot markets generally allow investors to open accounts with digital asset exchanges and then buy or sell AVAX via websites or mobile applications. Prices for AVAX trades on these markets are typically publicly reported. Investors wishing to trade AVAX on a digital asset platform must deposit an accepted government-issued currency or previously acquired digital assets into their platform account before they can purchase or sell AVAX. This process of setting up an account with a trading platform and executing trades is separate from, and should not be confused with, the process of transferring AVAX between addresses on the Avalanche Blockchain. The latter involves activities directly on the Avalanche Network, while trading on digital platforms occurs within the exchange’s order book. The platform generally records an investor’s AVAX ownership in its internal books, not on the Avalanche blockchain. AVAX is typically not transferred to the investor’s personal wallet unless they request a withdrawal to an off-platform AVAX address. Outside of spot markets, AVAX can also be traded over-the-counter (OTC). The OTC market is predominantly institutional, with participants including firms that provide two-sided liquidity for AVAX, investment managers, proprietary trading firms, high-net-worth individuals, entities holding significant amounts of AVAX, and family offices. The OTC market offers a flexible environment in terms of quotes, pricing, and quantity, though it often involves large quantities of AVAX. There is no formal structure to the OTC market, nor an open meeting place for transactions. Parties involved in OTC trades typically agree on the price—often by phone or email—before one party initiates the transfer by sending AVAX to the buyer’s AVAX address. The buyer would then transfer the agreed-upon currency to the seller’s bank account. OTC trades are sometimes hedged and eventually settled on digital asset trading platforms. In addition, Avalanche futures and options trading occurs on exchanges in the United States regulated by the CFTC. The market for CFTC-regulated trading of Avalanche derivatives has developed substantially. As of September 2, 2025, CFTC regulated Avalanche futures represented approximately $134.9 million in notional trading volume on Coinbase Derivatives, LLC (“Coinbase Derivatives”), a designated contract market (“DCM”) registered with the CFTC, representing around $124.8 million in open interest. Avalanche futures on Coinbase Derivatives traded around $0.7 million per trading day as of September 2, 2025, and represented around $0.6 million in open interest per trading day. Through the common membership of NASDAQ and the Coinbase Derivatives AVAX futures market in the Intermarket Surveillance Group (“ISG”), NASDAQ may obtain information regarding trading in the Shares and listed Avalanche derivatives from the Coinbase Derivatives AVAX futures market via the ISG and from other exchanges who are members or affiliates of the ISG. Such an arrangement with the ISG and the Coinbase Derivatives AVAX futures market allows for the surveillance of AVAX futures market conditions and price
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