# Avalanche Subnet

By [draiwuan](https://paragraph.com/@draiwuan) · 2024-10-31

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Avalanche recently introduced two critical subnets within just two weeks, advancing its network’s scalability and functionality. The **Evergreen Subnets** are Avalanche's latest subnet group, focusing on traditional organizations by offering private, customizable blockchain tools. They support strategies related to digital assets and allow businesses to set KYC/KYB standards and regulatory conditions. Evergreen subnets resemble private blockchains but maintain interoperability with other Avalanche subnets via **Avalanche Warp Messaging (AWM)**, which enables asset swapping, data transfer, and inter-subnet communications without intermediaries.

Two Evergreen subnets are **The Spruce Testnet**—for financial product trials with institutional partners like WisdomTree and Qredo—and **Intain**, aiming to establish an on-chain marketplace for asset-backed securities. This strategic launch positions Evergreen to attract traditional institutions, potentially bringing substantial capital and new users into the crypto ecosystem.

Additionally, **Beam Subnet** was launched by gaming DAO Merit Circle, targeting the gaming sector. Beam will serve as the infrastructure backbone for several high-quality games and projects, with Merit Circle’s MC token used as gas fees. Partnering with Avalanche’s Ava Labs, Beam aims to create an interactive gaming community within Avalanche. Once operational, games on Beam could connect to other Avalanche gaming subnets, expanding the gaming ecosystem.

Currently, subnets like **DFK Chain** and **Swimmer Network** are popular, with DFK Chain maintaining high user activity. Emerging subnets like **Xana** are also drawing attention by integrating metaverse, AI, and NFTs. While traditional subnets dominate user engagement, newer subnets such as **Dexalot** are driving transaction volume in DeFi. **Avalanche’s main C-Chain** also saw upgrades, including Circle's Cross-Chain Transfer Protocol and a gas limit increase, both of which enhance network capacity for complex dApps and increase USDC liquidity.

Avalanche’s strategy is to draw both traditional finance and non-crypto users into the ecosystem via targeted subnets for finance and gaming. This approach may lead to notable expansion but highlights the time-intensive preparation needed, as only a few subnets are currently active. The arrival of Merit Circle’s gaming ecosystem could further accelerate growth, particularly for gaming-focused subnets.

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*Originally published on [draiwuan](https://paragraph.com/@draiwuan/avalanche-subnet)*
