In the rapidly evolving blockchain gaming landscape, Avalanche is emerging as a preferred platform for high-profile game developers over Ethereum. Recent announcements reveal that several big-name games have either launched or plan to launch their own chains on Avalanche’s tech stack, raising the question: Why are they choosing Avalanche instead of Ethereum?
The answer lies in Avalanche’s innovative upgrades, cost efficiency, and robust infrastructure, which collectively offer significant advantages for developers building gaming ecosystems.
The Role of Avalanche9000
The shift began with Avalanche9000, the network’s largest upgrade implemented in December 2024. Often compared to Ethereum’s “The Merge,” this upgrade radically overhauled validator economics, making it more accessible and cost-effective to build on Avalanche.
Under ACP-77, one of the key changes was replacing Avalanche validators’ high fixed stake cost requirements (2000 AVAX) with a low-cost, pay-as-you-go model. This reduction in upfront costs has made launching a sovereign Avalanche Layer 1 (L1) chain significantly more attractive—potentially even cheaper than alternatives like Celestia rollups or Cosmos Appchains, according to estimates by Blockworks Research’s EffortCapital.
Leveraging the C-Chain Ecosystem
One of Avalanche’s standout features is its C-Chain, the network’s liquidity hub. Developers building an Avalanche L1 can leverage the existing infrastructure of the C-Chain, saving both time and money.
For example:
- Centralized Exchange (CEX) Ramps: Avalanche L1s can integrate with centralized exchanges via the C-Chain without paying hefty fees to establish direct connections.
- Pre-Built Infrastructure: The C-Chain already supports essential tools like oracles, RPCs, indexers, explorers, and NFT marketplaces —features that could cost an independent L1 up to $13 million to bootstrap from scratch.
“Avalanche offers teams a faster go-to-market strategy while saving millions in integration fees,” explained Luigi D’Onorio DeMeo, Chief Strategy Officer at Ava Labs.
This seamless integration is powered by Avalanche’s Interchain Messaging (ICM) protocol, which enables easy asset transfers between Avalanche L1s and the C-Chain. One of the busiest routes today is between the C-Chain and Henesys, the chain built for MapleStory, facilitating thousands of messages daily.
Value Accrual for Native Tokens
Another compelling reason for developers to choose Avalanche is the ability to create clear value accrual streams for their native tokens.
Unlike Ethereum L2s which face limitations in token utility beyond governance, Avalanche L1s can:
- Bootstrap their own validator sets.
- Issue block rewards in their native tokens.
- Use their tokens as gas fees.
These mechanisms provide tangible economic benefits to users and investors, fostering stronger ecosystems around new chains.
How AVAX Benefits from This Growth
The success of Avalanche L1s also contributes to the value of AVAX, Avalanche’s native token. Here’s how:
- Fee Burning: 100% of all C-Chain fees are burned, compared to partial burns on networks like Solana or Ethereum. In 2025, Avalanche burned an average of $453,000 monthly in fees.
- Validator Staking: Validators continue to stake AVAX to secure the primary networks. Currently, approximately $8 billion (360.2 million AVAX) is staked.
- Monthly Validator Fees: Under ACP-77, every Avalanche L1 validator pays a small, continuous monthly fee in AVAX. Depending on the number of validators, these fees range from hundreds to thousands of dollars.
- ICM Transaction Fees: A minimal, indirect fee is burned whenever transactions interact with the C-Chain through ICM.
Customization with AvaCloud’s HyperSDK
Avalanche’s AvaCloud platform further enhances its appeal with the HyperSDK, offering developers a high degree of L1 customization. This flexibility gives Avalanche a competitive edge over the constraints faced by projects building on Ethereum L2s or other rollup-based tech stacks.
Comparing Strategies: Avalanche vs. Ethereum
While Ethereum focuses on subsidizing short-term execution fees for L2s in hopes of attracting long-term data availability fees, Avalanche is taking a different approach. By reducing upfront costs for developers, Avalanche aims to foster rapid adoption and ecosystem growth, positioning itself as a leader in blockchain gaming and decentralized applications.
Similarly, projects like Celestia are giving away data availability (DA) for free to drive future growth. However, Avalanche’s combination of low costs, ready-to-use infrastructure, and robust tokenomics makes it uniquely appealing to developers seeking scalability and sustainability.
Final Thoughts
The decision by major gaming companies to build on Avalanche rather than Ethereum highlights the network’s strengths in cost efficiency, infrastructure support, and value accrual. With its focus on reducing barriers to entry and empowering developers, Avalanche is carving out a niche as a premier platform for blockchain gaming and beyond.
As the industry continues to mature, Avalanche’s strategic innovations may well position it as a dominant force in the next wave of blockchain adoption.
