Key Avalanche Takeaways:
- Avalanche (AVAX) has seen over 44 percent weekly gains, and the trend could persist for the reasons listed below:
- The developers are showing increased interest for the platform.
- The Avalanche ecosystem is growing with new protocol deployments.
- The dependence on Bitcoin trends could pay off, considering the green candles on the BTC charts.
YEREVAN (CoinChapter.com) – Avalanche, a proof-of-stake smart contract platform has had a fruitful week with a 44.3 percent gain. Despite a minor setback on Sep. 13-14, the digital asset peaked at a new all-time high during the week ($66.8 on Sep. 12). Moreover, Avalanche bulls could push the AVAX wagon even higher, considering the following three reasons.
#1 Developers’ growing interest
Outlier Ventures, a capital management firm, gathered data on repository hosting service GitHub to investigate developers’ interest in a total of fifty different blockchains. The firm published the results, pinpointing Avalanche, as the number one blockchain in the rising trend category.
In detail, the study was based on the number of commits, which are a measure of developers’ activity. Cardano was the winner by the sheer number of commits per month (June 2020- May 2021). While Avalanche took the price as the fastest growing trend, with a 709% rise in CPY (commits per year) throughout the same period.
Generally, developers’ activity on any platform signifies heightened interest and boosts the probability of a blockchain doing well in the long run. As Avalanche was able to spark an explosive growth in interest, AVAX could also push to new all-time highs.
#2 Avalanche’s expanding ecosystem
In hindsight, Avalanche is a proof-of-stake protocol, thus it needs the approval of the validators to endorse any update, or bring projects onto the platform. The network proposed to deploy Aave, a borrowing/lending protocol onto Avalanche.
The announcement urged the Aave community to vote and pointed out that Aave governance prior to the deployment is paramount.
The Avalanche blockchain is well-suited for building DeFi applications due to scalability, high throughput, and near-instant finality.[…] Having the Aave community embrace deployment on established chains like Avalanche will allow more users to access Aave’s offerings across the DeFi ecosystem.read the proposal.
Moreover, Avalanche announced that it has allocated up to $20M AVAX tokens specifically for Aave users over a three-month period. During the mentioned time, Aave users can earn AVAX rewards while using Aave on Avalanche.
Through the Avalanche Rush program, the Avalanche foundation has allocated up to $20M AVAX for users of the Aave protocol over a three-month period to earn AVAX rewards while using Aave on Avalanche for the first phase of the program.
Should the community vote in favor of the deployment, both platforms could benefit and see a rise in the number of users.
#3 Bitcoin’s bullish trend
Like many other altcoins on the market, AVAX’s price action has also followed Bitcoin’s lead in the past. On July 21, the alpha crypto initiated a recovery wave, where it gained 43 percent in 10 days. AVAX gains were identical.
August 4-9 Bitcoin logged another 23 percent. Avalanche followed with a 30 percent advance. Sep. 7-9, when Bitcoin lost 16 percent, the smart contract platform followed suit, shedding over 30 percent off its value. The ripples of Bitcoin trends echo on AVAX charts, so if the flagship crypto continues the bullish streak, Avalanche is likely to follow.
As of the moment, AVAX/USD pair traded at 61.3, a close value to its all-time high of 66.8. The $63.3 line acted as resistance earlier in the Asian-Pacifica session Thursday. However, should the digital asset break out, it could score a new all-time high, after possibly retesting the said line as support.
For the time being, AVAx confidently traded above its 20-day exponential moving average (EMA-20), using it as additional support.