The Avalanche C chain has quietly warmed up, smart capital is laying out stable returns.

Amidst a generally sluggish market, Avalanche's C-Chain has shown a counter-trend upward momentum. Active addresses have increased for three consecutive weeks, the total value locked (TVL) in mainstream protocols has risen again, and even some old projects that were once forgotten by the market have made a strong comeback. Meanwhile, the Avalanche ecosystem continues to improve its infrastructure, launching new features such as virtual card services and wallets that support gas-free operations. These signs all suggest that the value of infrastructure is being reassessed.

True smart money does not simply chase high returns, but focuses on long-term stable winning rates. Their investment strategies typically include the following characteristics:

1. Stay calm and rational, do not be overly greedy or easily panic.
2. Prioritize risk control over returns, focusing on the security of the protocol.
3. Emphasize the transparency of on-chain data and asset liquidity.

These investors are more like a combination of fund managers and technical experts in the Web3 space, proficient not only in financial analysis but also in deeply understanding smart contract code. Their investment trends often serve as a barometer for the entire ecosystem.

In the second half of 2024, amid market turbulence, smart money began to favor stable income protocols. For example, the BENQI project in the Avalanche ecosystem has attracted these funds, with its TVL soaring to $520 million, and the quantity of liquid staking token $sAVAX has also reached new highs.

Such projects usually have the following characteristics:

• Stable annualized yield
• Assets can be flexibly reused.
• The operation mechanism is transparent, with no complex lock-up requirements.
• User-friendly interface, easy to operate

On-chain data shows that some large addresses are continuously converting AVAX to sAVAX and participating in lending loops, with single transactions exceeding one million dollars. This "yield-collateral-compounding" strategy is a typical operation of smart money under the current market conditions.

Contrary to common perception, Avalanche's C-Chain has not been marginalized; instead, it is becoming the core of its infrastructure development. Recently, Avalanche launched a virtual card service that supports multiple cryptocurrencies and also introduced a wallet that supports gas-free operations, significantly lowering the usage threshold for new users. At the same time, on-chain data services have also been upgraded, providing developers and investors with more convenient data query services.

These measures indicate that the C chain is paving the way for actual users and asset inflows. For smart money, this is precisely the core reason they are optimistic about Avalanche: only solid infrastructure can truly withstand the test of market cycles when the market is filled with various conceptual speculations.

From a more macroscopic perspective, smart money does not simply invest in a specific project, but is betting on a long-term logic: stable returns are a safe haven during periods of market turbulence. Whether it is BENQI's $sAVAX or similar products in other ecosystems, they are opening new pathways for value release for non-trading assets.

This trend is reflected throughout the entire cryptocurrency market. For example, some projects focus on enhancing the utilization of stablecoin assets, while others have launched innovative structured yield products. At the same time, some large DeFi protocols are also enhancing long-term stability by improving governance structures. These seemingly conservative choices are actually laying the groundwork for the next bull market.

True smart money does not simply ask whether a certain token can skyrocket, but rather pays more attention to the following aspects:

• The risk control capability of the protocol
• Sustainability of income sources
• The authenticity of on-chain liquidity
• The project's team's continuous iteration capability and community activity level

They will only consider investing when all these questions are answered positively.

For ordinary investors, if you want to enhance your investment judgment ability, you can start from the following aspects:

1. Pay attention to the project's security audit status and code open-source status.
2. Learn to view and analyze on-chain data
3. Assess the availability and flexibility of assets
4. Observe the update frequency of the project team and the level of community interaction.

In the upcoming bull market, rational analysis and a solid layout will be more valuable than blindly chasing trends. Stay calm, master the fundamentals, and you will gain an advantage in the market.