Avalanche is set to implement the Granite upgrade this week, aiming to significantly enhance transaction speeds and adapt to varying onchain traffic. Developed by Ava Labs, the upgrade seeks to reduce settlement times to under two seconds, improving the blockchain's efficiency for institutional applications. This technical advancement comes as Avalanche faces a $1.4 billion outflow from its DeFi sector over the past six weeks, with its onchain economy now nearly 90% below its 2022 peak of $17.8 billion. The Granite upgrade introduces three major updates: dynamic transaction processing speeds, reduced crosschain costs, and biometric data signing for mobile users. These enhancements are expected to bolster Avalanche's competitiveness in the blockchain space, despite recent financial challenges.