Key Takeaways:
- The so-called “Ethereum killer” Avalanche (AVAX) exploded 80% amid a broad recovery across crypto assets.
- Crypto Carbon Ratings Institute listed Avalanche as one of the lowest energy-consuming networks in the industry.
YEREVAN (CoinChapter.com) – Avalanche (AVAX) caught the multi-factor recovery wave led by Bitcoin (BTC), rallying over 80% to $88.80 after bottoming out on Jan. 22.
Moreover, the uptrend was also fueled by liquidations among short-sellers betting on declining crypto prices. According to Coinglass, a liquidation-tracking resource, short liquidations in the crypto world totaled $124.90 million on Feb 7.
Also read: Ethereum killers Solana (SOL), Terra (LUNA), and Avalanche (AVAX), back on track after brutal January—what to expect?
Avalanche saw short liquidations outpace long liquidations, by quite a wide margin, along with other platforms, like Algorand (ALGO) and Dogecoin (DOGE).
Bullish AVAX technicals
Additionally, the Avalanche token broke out of the bullish Falling Wedge formation with a promise of more gains. In detail, the setup entails two down-sloping, converging trendlines that drive the price down and lower the amplitude as the formation progresses.
However, once the token breaks the resistance, it generally secures an upside move, which AVAX did on Feb. 4.
The rally stalled around the 50-day exponential moving average (EMA-50), which acted as resistance. However, if AVAX breaks above the red wave, it could retest it as support, securing the uptrend.
Also read: Avalanche eyes bull run to $100 as AVAX jump nearly 19% in two days.
Avalanche’s low energy consumption
The Crypto Carbon Rating Institute (CCRI) concluded that Avalanche’s annual energy consumption equals 46 U.S. households, which is 35,000 times lower than Ethereum.
In detail, CCRI is a research company focused on the environmental impact of cryptocurrencies. The Institute released the results of the mentioned study on Feb 2, as it researched the six leading proof-of-stake platforms and their proof-of-work counterparts.
The research revealed that Avalanche uses 0.0005% of the amount of energy consumed by the Bitcoin blockchain and only 0.0028% of Ethereum (ETH). While the average U.S. household is estimated to consume 10,600 kWh per year, Avalanche uses up energy equal to 46 of them.
Also read: KPMG Canada becomes the latest mainstream firm to add Bitcoin and Ether to its treasury.
Meanwhile, Bitcoin and Ethereum use the equivalent of 8.5 and 1.6 million households, respectively. Avalanche is “green” by CCRI’s standards, but Polkadot won the race with only 70,237 kWh energy consumption per year.
Avalanche founder and CEO Emin Gun Sirer posted the news on Feb 3.
