The Quiet Resurgence of Avalanche C Chain: The Return of Stable Returns

In the current market environment, Avalanche's C chain is experiencing an unremarkable recovery. Despite the total value locked (TVL) of most ecosystems slowly declining, with market hotspots occupied by artificial intelligence, re-staking, and meme coins, the C chain is rising against the trend. Recent data shows that active addresses have increased for three consecutive weeks, the TVL of mainstream protocols has risen again, and even some forgotten old projects like BENQI have made a strong comeback.

Meanwhile, the infrastructure of the Avalanche ecosystem continues to upgrade. These developments hint at a fact: the value of infrastructure is being reassessed by the market. Savvy investors seem to have quietly positioned themselves; they do not follow trends nor are they keen on storytelling, yet they often stay at the forefront of the market.

Characteristics of Savvy Investors

The so-called "smart money" does not refer to the investors with the largest amount of capital, but rather to those who can maintain a high win rate in the long-term market. Their investment strategies usually include the following points:

1. Stay calm: Whether in a bull market or bear market, maintain rational judgment, neither overly optimistic nor excessively pessimistic.
2. Risk control first: focus more on the project's code audit rather than simply pursuing high returns.
3. Value on-chain transparency and liquidity: Prefer projects that have public data and sufficient liquidity.

These investors typically possess both financial analysis skills and technical insight, enabling them to conduct financial modeling and smart contract code reviews simultaneously. Their investment behavior often serves as a barometer for the ecosystem, such as the recent significant increase in BENQI liquidity being one of their choices on the chain.

Stable Income Strategy

During periods of market volatility and low sentiment, savvy investors begin to position themselves in stable yield protocols. Taking BENQI in the Avalanche ecosystem as an example, its TVL has surged to $520 million, with nearly 10 million AVAX staked in liquid staking of sAVAX, reaching new highs almost every day.

The projects chosen by these investors typically have the following characteristics:

• Stable Annual Percentage Rate (APR)
• Strong asset reusability
• Transparent mechanism, simple operation
• User-friendly interface

On-chain data shows that there are addresses that have been converting AVAX to sAVAX for several consecutive days and using it for lending and borrowing operations, with a total exceeding one million dollars. This "yield-collateral-compounding" combination strategy is a typical robust profit-making method for savvy investors.

Strategic Position of Avalanche C Chain

Although Avalanche has launched the Subnet multi-chain strategy, the C-Chain remains the core of its infrastructure development. A recent series of initiatives confirm this:

• Launched the Avalanche Visa virtual card, supporting direct consumption of multiple cryptocurrencies.
• The Core wallet supports gas-free operations, significantly lowering the entry barrier for new users.
• Upgrade on-chain data services to facilitate developers and investors in querying contract and asset data.

These measures indicate that the C chain is preparing to accept real users and asset inflows. For savvy investors, this is precisely the core logic behind their optimism for Avalanche: only solid infrastructure can navigate through cycles during market volatility. As part of the early infrastructure, BENQI is being reassessed and repriced by the market.

Long-term Value of Stable Returns

From a more macro perspective, savvy investors are not betting on a specific project, but are investing in a long-term logic: stable returns are the moat during market turbulence. Whether it is BENQI's sAVAX, Lido's stETH, or Frax's sfrxETH, they are all seeking new ways to release value for non-tradable assets.

This trend is reflected throughout the market:

• Frax focuses on stable pools like sDAI to improve asset utilization.
• Pendle's structured yield products continue to be popular, sparking new arbitrage strategies.
• Maker launched SubDAO to decentralize governance pressure and enhance long-term stability.
• EigenLayer creates a new layer of yield through "re-staking", attracting TVL to flow back.

These seemingly conservative choices are actually laying the foundation for the next bull market, emphasizing refined management, transparency, and sustainability.

Core Considerations in Investment Decisions

Savvy investors pay more attention to the following aspects when making investment decisions:

• Risk control capabilities of the protocol
• The authenticity and sustainability of the source of income
• The authenticity of on-chain liquidity and the reliability of TVL data
• The team's continuous iteration capability and the community's activity level

Only when the answers to these questions are satisfactory will they be determined to invest. This cautious attitude and in-depth analysis are key to their ability to succeed in the market in the long term.

Tips for Becoming a Smart Investor

For those looking to enhance their investment wisdom, the following points of advice are worth considering:

1. Pay attention to the project's audit status and code open-source status.
2. Carefully examine on-chain data, including TVL, active wallet count, and asset structure.
3. Assess the availability of assets, such as whether they can participate in lending or other uses after being staked.
4. Analyze the product update frequency of the team and the level of community interaction.

While market opportunities may be approaching, it is still crucial to remain rational and focused on fundamental analysis. True wisdom lies not in chasing short-term trends, but in deeply understanding the underlying logic and long-term value of the market.