- The AVAX/USDT pair began the week on a bullish note by posting 14% gains.
- Avalanche’s native token looks primed to achieve a $100+ price.
- Ethereum dApps can now be launched on the smart contract platform
JAIPUR (Coinchapter.com) – Avalanche’s native blockchain asset started the week by logging a new all-time high, rising 14% on Monday. AVAX bulls bought the token en-masse, lifting it from sessional lows at $83.79 to $97.24. The AVAX/USDT pair is now consolidating at $92 and looks to top $100 in the next upside move.
The bullish momentum also took shape due to the rapid adoption of the Avalanche smart contract platform. Also, the recent launch of another $200 million+ fund to support DeFi, NFT, social tokens, and other applications strengthened investor confidence in AVAX. Named Blizzard, the fund is the brainchild of the Avalanche Foundation, Ava Labs, Polychain Capital, and Three Arrows Capital.
Related: AVAX jumps 13% amid significant Avalanche ecosystem growth
Avalanche Ecosystem Growth
Compatibility With Solidity
Fundamental developments in the Avalanche ecosystem spurred appreciation in the platform’s token price. In addition, as per the latest update from the official Twitter handle, it is now possible to deploy Ethereum-based decentralized applications on Avalanche.
The relatively young smart contract platform has a contract chain (C-Chain) that runs on the mainnet.
“C-Chain runs a fork of go-ethereum called coreth that has the networking and consensus portions replaced with Avalanche equivalents. What’s left is the Ethereum VM, which runs Solidity smart contracts and manages data structures and blocks on the chain. As a result, you get a blockchain that can run all the Solidity smart contracts from Ethereum, but with much greater transaction bandwidth and instant finality that Avalanche’s revolutionary consensus enables.”
Developers can leverage Ethereum specific tools and environments such as Remix, Truffle, Hardhat to deploy applications on Avalanche.
Exploding DeFi Ecosystem
The AVAX underpinning platform registered impressive DeFi numbers ever since smart contract applications started attracting funds from users. According to DeFi Llama, the public blockchain holds $10 billion in liquidity from a total of 59 protocols operating at the moment. AAVE is the leading DeFi application amongst them all.
Avalanche’s DeFi ecosystem got a significant boost, with John Wu, president of Ava Labs, receiving a mainstream media feature. In his conversation with the Insider, Wu explained why hedge funds prefer Defi moreover Bitcoin ETFs.
“#DeFi is a giant petri dish of genius, of things that will give them more power and more access to products that they can’t get in the traditional finance world …It’s a wonderful thing.”
said the Ava Labs president
NFT Growth
The gradual pilferage of NFT projects on Avalanche triggered a wave of bullish sentiment. Since non-fungible tokens and metaverse are quite the hype, the platform’s growing support for such applications led to the AVAX/USDT pair gaining 26% over the last three days.
AVAX/USDT Technical Setup
AVAX looks bullish on the daily chart but, explosive price action led to Avalanche’s native blockchain token sparking overbought concerns. Sellers showed up to book profits off the latest rally as a result. As a result, the AVAX/USDT pair dipped to $90 with a relative strength index (RSI) drop below 70 (on the 4h chart).
But the correction is a recipe for consolidation. A tussle between bulls and bears would solidify the token’s support in the $85-90 range, which in turn, will form the launchpad for further rallies.
Related: AVAX rallies 13.29% as Avalanche announces “big upgrade” eyeing reduced fee structures
The AVAX/USDT pair trades within an Ascending Channel formation. The ongoing upside run started after the bounce off the lower trendline on October 31. Bulls may have lost steam but remain resilient in pursuing the $100 resistance and $110 later.
“$AVAX
New all time high. Look for the support flip. Insanely bullish chart, nothing but higher lows and higher highs.”
noted DJ-turned crypto trader and investor Scott Melker
