Avalanche Ecosystem DFK Chain Permanently Shuts Down
The wave of public chain shutdowns has affected the Avalanche ecosystem, with the once-famous chain game DeFi Kingdoms' DFK Chain announcing its permanent closure.
DFK Chain, based on Avalanche's Subnet technology, served as the face of the Avalanche ecosystem subnet. Avalanche has struggled to find its positioning in this cycle, with its survival space being eroded by new public chains, ultimately losing in the brutal competition among public chains.
With the closure of the subnet project, funds and users are shifting from the dedicated chain to the main chain or other ecosystems; the event-driven nature creates operational and competitive pressure, benefiting the target chains for migration while putting pressure on the narrative of the Avalanche subnet.
Source: Public Information
ABAB AI Insight
DeFi Kingdoms, as an early star subnet game on Avalanche, relied on running on an independent chain; now, due to cost or activity levels, it has decided to sunset and migrate to C-Chain, reflecting the challenges of the subnet model in this cycle.
The unclear positioning of Avalanche and intensified competition from new public chains have led to a contraction of ecosystem projects; similar to the paths of other L1s losing market share in the cycle, resources are concentrating from subnet experiments to the mainnet or more active chains.
This shutdown is similar to multiple cases where application chains or subnets have merged due to unsustainable economics; the current public chain competition is in a phase of market share redistribution and survival of the fittest.
Essentially, this represents a restructuring of the industry chain: the closure of the subnet face accelerates the ecosystem's transition from decentralized dedicated chains to centralized usable infrastructure.
ABAB News · Law of Cognition
The subnet face may also permanently shut down
Unclear positioning will be eroded by new public chains
The wave of shutdowns ultimately tests the real demand of the ecosystem