5 reasons why Avalanche (AVAX) rallied over 30% in just seven days

AVAX prices rocketed upwards to gain 35% in a week. Image by Pixabay on Stockvault
AVAX prices rocketed upwards to gain 35% in a week. Image by Pixabay on Stockvault

Key Takeaways:

  • Avalanche gained 35.83% last week, reaching $90 for the first time.
  • A slew of fundamentals back the jump, ranging from new projects to growth of the network itself.

NEW DELHI (CoinChapter.com) — Avalanche, a platform for creating custom blockchains and dApps, enjoys a tremendous bull run. The network’s native token, AVAX, gained over 35% in the previous week, reaching new record highs.

Jay Kurahashi-Sofue, VP of marketing at Ava Labs, took to Twitter to list some of AVAX’s bullish drivers.

Yield Farms On Avalanche

As a smart contracts platform that allows users to create custom multi-purpose blockchains or dApps, Avalanche offers a host of services to its users. For example, Snowbank ($SB) is a decentralized reserve currency protocol on the Avalanche network.

Each SB token is backed by an asset basket (SB-AVAX, MIM tokens, etc.) in the Snowbank DAO treasury. The platform also supports staking and minting. At present, Snowbank offers an annual percentage yield of 351,197,963,025,942.1%. At present, the platform has a TVL of $38.7 million.

Blizz Finance is another project on the Avalanche network that offers similarly insane returns. Blizz is a non-custodial liquidity market protocol where users can participate as borrowers or depositors. The platform currently has a TVL of $1 billion.

However, both protocols have risks, and it is advisable to practice caution when investing in such platforms.

Avalanche v/s Ethereum

Moreover, Avalanche is also emerging as one of the contenders for the Ethereum killer title. Avalanche can handle 4,500 transactions per second (TPS) compared to Ethereum’s 15-30 TPS. In addition, the transaction fees are very low on Avalanche, while Ethereum has been trying to solve its high gas rates issue.

Recommended: Avalanche eyes $100 as AVAX posts 14% intraday gains.

Although Ethereum has more projects (2,839) on its network, Avalanche is catching up. The platform boasts 358 projects in just 13 months of launch. Avalanche’s Ethereum bridge seamless migration of Ethereum’s DeFi infrastructure to Avalanche, allowing users access to faster and cheaper transactions.

The total value bridged from Ethereum has reached $5.86 billion, highlighting the growing interest in the Avalanche network.

Avalaunch’s Crabada IDO

Registrations for Avalaunch’s Crabada IDO reached 15,290 applicants. Crabada is an upcoming play and earns NFT-based game that allows users to breed and collect hermit-crabs called Crabada. The game will have Crabada (CRA) as the governance token and Treasure Under Sea (TUS) as the in-game currency.

Avalaunch is an Avalanche network-based launchpad that has positioned itself as an ecosystem accelerator. Avalaunch purchased the entire $400,000 IDO allocation to offer it to participants free of charge, which might be a reason behind the 15,000+ registrations.

Also Read: AVAX jumps 13% amid significant Avalanche ecosystem growth.

Furthermore, with the increased demand for the Crabada IDO, the Crabada team revised the distribution of Breeding coins. The amount of XAVA staked by applicants would now decide the distribution of Breeding Coins. In addition, 1,470 participants would get access to a special breeding event.

TVL Explosion

Total Value Locked represents the sum of all assets deposited in a decentralized finance protocol. The metric is an important tool to gauge the health of a DeFi protocol.

Avalanche, 5 reasons why Avalanche (AVAX) rallied over 30% in just seven days
Total Value Locked on Avalanche has grown steadily in the second half of 2021. Source: Defilllama

Currently, Avalanche has a TVL of $10.28 billion. Increasing TVL attracts investors as it indicates that the network is growing. For Avalanche, further proof of its growth comes from its active addresses and number of transactions.

ATH Daily Active Addresses And Transactions

The number of daily active addresses on the Avalanche Network reached a new record high of 73,566 on Nov 8, with daily transactions reaching 565,437. Both these metrics highlight user engagement on the network.

Avalanche, 5 reasons why Avalanche (AVAX) rallied over 30% in just seven days
AVAX daily transactions and daily active addresses. Source: Avalanche C-Chain Mainnet Stats

The increasing number of daily transactions signifies the increased interest from developers and investors in the Avalanche network. Moreover, the charts also highlight the explosive growth of Avalanche since Aug this year. The number of daily active addresses went from 2,057 on Aug 15 to 15,278 on Aug 31, registering a jump of 642.73%

Grayscale Investments recently announced it was considering adding AVAX to its range of investment products, further fueling AVAX’s meteoric rise to new ATHs.

At the time of writing, AVAX was trading at $89.6, down 1.7% on the day.

How useful was this post?

Click on a star to rate it!

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com