Bitcoin
BTC$28 321.68

2.28%

Ethereum
ETH$1 817.69

3.62%

Tether
USDT$1.001105

-0.07%

Binance Coin
BNB$325.66

0.31%

USD Coin
USDC$0.999778

0.08%

XRP
XRP$0.434678

-3.53%

Avalanche (AVAX) just hit a new ATH, but what’s really behind the price surge?


17 Sep 2021

#Avalanche

AVAX price soared to a record high as heavy inflows enter the protocol through its cross-chain bridge and institutional investors pledge $230 million in funding for the rapidly expanding Avalanche ecosystem. On Thursday Avalanche’s (AVAX) price hit a new all-time high at $68.89, and over the last few months, the project has risen to challenge the Ethereum network’s dominance among smart contract platforms. According to the project’s website, the layer-one protocol is capable of surpassing 4,500 transactions per second (TPS) with a time to finality of less than 2 seconds.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $32.10 on Sept. 7, the price of AVAX has rallied 111% to establish a new all-time high on S as its 24-hour trading volume spiked 200% to $2.8 billion.

Three reasons for the surging price of AVAX include the recent completion of a $230-million investment round by large capital funds, the continued migration of liquidity to the Avalanche network, and new integrations and protocol upgrades that help improve the user experience.

Big funds back Avalanche

The jump in momentum seen in AVAX’s price on Thursday came following the announcement that a handful of large funds, including Polychain Capital, Three Arrows Capital and Dragonfly capital, took part in a $230-million funding round for the project. This marks the largest investment into the Avalanche ecosystem to date and indicates that larger institutional players are starting to take a keen interest in the Ethereum competitor.

The Avalanche network is cross-chain compatible with Ethereum, meaning any tokens or projects that operate on Ethereum can fully migrate to the Avalanche ecosystem and take advantage of its higher throughput capabilities and lower transaction costs.

With no definitive date on when Ethereum 2.0 will be fully operational or what its final capabilities will be, networks like Avalanche now have an opportunity to make the case for why they are a better choice, which could lead to an increase in their market share.

Liquidity migration and rising TVL

A second reason for the building strength seen in AVAX has been the continual migration of assets from networks like Ethereum to Avalanche to participate in its growing decentralized finance (DeFi) ecosystem. Evidence of the asset migration can be found in the total value locked (TVL) data provided by Defi Llama, which shows that the TVL on Avalanche has been climbing rapidly since Aug. 19 and reached a new record high of $2.17 billion on Thursday. The rise in TVL is largely due to the launch and growth of several successful DeFi protocols on Avalanche, including Benqi (QI), Trader Joe (JOE) and Pangolin (PNG).

Partnerships and crypto-related integrations

A third factor that has helped boost the value of AVAX has been a series of partnership and integration announcements that have excited investors and put the spotlight on the project. The Avalanche nonfungible token (NFT) ecosystem has seen an influx of interest thanks to a partnership with the sports card and memorabilia company Topps, which launched its “Inception” NFT digital collectibles series on the network.

There is also a vote underway in the Aave community, one of the top DeFi protocols in the cryptocurrency ecosystem, to see if investors want to see Aave launch on the Avalanche network. A vote of approval could lead to a further increase in TVL on Avalanche, as assets held in Aave on Ethereum have the potential to be migrated to Aave on Avalanche.

According to data from Cointelegraph Markets Pro, market conditions for AVAX have been favorable for some time. The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity. VORTECS™ Score for AVAX spiked into the green and reached a high of 86 on Monda, around 24 hours before the price increased 40% over the next two days.


Related

Avalanche (AVAX) price is up, but do fundamentals support the rally?
Avalanche (AVAX) price is up, but do fundamentals support the rally?
Avalanche (AVAX): The bulls tried to push the price back above the uptrend line
Avalanche (AVAX): The bulls tried to push the price back above the uptrend line
Here’s why Avalanche, OriginTrail and Coti hardly budged as Bitcoin fell to $40K
Here’s why Avalanche, OriginTrail and Coti hardly budged as Bitcoin fell to $40K
Avalanche (AVAX) in overbought zone after 100% gains in a week - Correction ahead?
Avalanche (AVAX) in overbought zone after 100% gains in a week - Correction ahead?
Avalanche Rush to give out more than 180M in DeFi incentives
Avalanche Rush to give out more than 180M in DeFi incentives

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 71.6% 54 $28 321.68 2.28% 8.48% $547 363 076 214 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 78.8% 39 $1 817.69 3.62% 5.68% $222 437 708 965 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 90.8% 1 $1.001105 -0.07% -0.18% $78 572 798 041 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 70.8% 51 $325.66 0.31% -1.61% $51 419 192 454 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 92% 2 $0.999778 0.08% -0.02% $34 416 346 579 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 84.4% 21 $0.434678 -3.53% 17.51% $22 147 264 021 XRP 7 days price change
7 HEX (HEX) HEX HEX predictions 62% 82 $0.111054 -9.71% 27.40% $19 257 973 692 HEX 7 days price change
8 Cardano (ADA) ADA Cardano predictions 74.8% 44 $0.367937 -0.76% 10.36% $12 775 060 278 ADA 7 days price change
9 Lido stETH (STETH) STETH Lido stETH predictions 90.8% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 73.2% 51 $0.076721 1.67% 2.49% $10 178 610 379 DOGE 7 days price change
11 Polygon (MATIC) MATIC Polygon predictions 76.8% 47 $1.15 2.04% -3.24% $10 016 033 654 MATIC 7 days price change
12 Solana (SOL) SOL Solana predictions 72% 52 $22.02 1.29% 9.81% $8 449 847 577 SOL 7 days price change
13 Binance USD (BUSD) BUSD Binance USD predictions 93.2% 1 $0.999969 0.04% -0.06% $8 063 768 426 BUSD 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 72.4% 49 $6.33 2.46% 0.91% $7 401 853 780 DOT 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 71.6% 59 $95.37 8.32% 16.29% $6 919 022 798 LTC 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.