Key Takeaways:
- Avalnche launches a $180 million project in collaboration with Aave and Curve Finance.
- In responce, Avalanche’s native token AVAX jumps 57% in two days, peaking at its three-month high.
YEREVAN (CoinCHapter.com) – AVAX, the native token of the Avalanche open smart contracts platform for building decentralized applications (dApps), surged 57 percent and peaked at a three-month high of $33.3 on Thursday.
The rally came in the wake of an announcement from Avalanche on August 18. The company launched a $180M liquidity mining incentive program collaborating with two DeFi platforms: Aave and Curve Finance.
In detail, Aave is a liquidity protocol for earning interest on deposits and borrowing assets, while Curve Finance is an exchange liquidity pool atop Ethereum, used for efficient stablecoin trading. Both projects are growing in popularity, and the collaboration with Avalanche could be beneficial for all platforms involved.
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Avalanche Rush
Dubbed the Avalanche Rush, the $180 million project aims to bring more applications and assets onto the Avalanche platform and grow its ecosystem. In Phase 1 of the project, the AVAX token will provide liquidity mining incentives for Aave and Curve users over three months.
Aave will allow Avalanche users to supply and borrow crypto assets and earn interest. In addition, Curve Finance will enable the exchange of stablecoins with low fees.
Avalanche allocated $20 million worth of AVAX tokens for Aave users and $7 million for Curve. The platform plans to give more in the upcoming months, starting the project’s Phase 2. According to the company, the Avalanche Rush intends to build a more efficient ecosystem for users and developers.
The Avalanche Rush incentive program cements the Avalanche Foundation’s commitment to scale DeFi and create a more accessible, decentralized, and cost-effective ecosystem.
reads the official announcement.
Michel Egorov, the chief executive of Curve Financial, sees the upcoming collaboration to enhance the DeFi sector. However, he commented that strong Level 2 solutions would increase the competition for Ethereum.
As DeFi becomes more and more popular, it becomes clear that Ethereum blockchain is currently struggling to fit all the activity. Thus, it is important to expand to other chains and L2s. We find Avalanche offering an excellent opportunity with its unique decentralized consensus mechanism, high throughput, and low transaction fees.
stated the CEO.
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Meanwhile AVAX…
… started its rally ahead of the news. The digital asset was bullish since the recovery wave swept across the altcoin market on July 21. However, the sharp uptrend started in anticipation of the announcement on August 17. AVAX peaked at $33.3 in the early Asian-Pacific session Thursday but slid back to $32.7 in later hours.
The cryptocurrency has reached a significant support/resistance bar at $29.6-31.7. Should the rally subside, the token could retest it as support. Correction is possible, as the bullish price action sent the relative strength index (RSI) into an overbought domain. The RSI (momentum indicator: purple graph at the bottom of the chart) stood at 92.5.
Generally, an RSI above 70 worries the traders, as the asset could be considered overbought. Subsequently, they might withdraw from the trade to secure the profits, and, as a result, the price could correct downward.
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Despite the possible correction, the fundamentals for the rally look optimistic. The technicals on the chart also look strong, at least in the short term. Avalanche enhanced the ecosystem with the help of Aave and Curve Finance DeFi platforms. The upcoming sessions will show if digital asset holds the bullish incentive.
