- The real strength of avalanche is its core infrastructure and its high transaction throughput.
- Avalanche is making major inroads into the DeFi market and has recently raised $230 million for DeFi innovation.
Amid the recent mania in decentralized finance (DeFi) a number of Ethereum alternatives have come to the surface. We have recently witnessed one such mind-boggling rally in Solana and its journey to the top ten cryptocurrencies by market cap.
However, we will be talking about the new don in DeFi town and it’s none other than Avalanche. AVAX, the native token of Avalanche has witnessed a solid rally recently. Over the last two months since mid-July 2021, the AVAX token price has surged all the way from under $10 to now above $70.
Meaning, AVAX has delivered a solid 7x or 600 percent returns in the last 60 days. As of press time, AVAX is trading at $71.12 and has a market cap of $15.5 billion. This also makes it the 11th largest cryptocurrency by market cap. Last week itself, AVAX touched an all-time high of $79.
Just like Solana, Avalanche is also among the layer-one blockchain networks eating into the market share of Ethereum. Just to give a perspective, Ethereum dominated 96 percent of the DeFi total value locked (TVL). Now, with the emergence of these new players, the Ethereum share has dropped to 67 percent of DeFi TVL.
Before we dive into the major factors driving the growth of Avalanche, let’s take a look at what is Avalanche and know a bit about it.
How Avalanche came to life
Avalanche is just a three-year-old project started in 2018 by Ava Labs and Cornell computer science associate professor Emin Gün Sirer. The blockchain claims to be the fastest blockchain measured by time-to-finality. It also claims to be having the most validators in comparison to other proof-of-stake (PoS) protocols.
Back in 2019, Avalanche secured a fundraise of $18 million and released its AVAX tokens priced at $0.33 each. In the subsequent year, Avalanche auctioned another 24.9 million AVAX tokens through a private sale priced at $0.50. Last year in July 2020, Avalanche raised another $42 million through its public token sale. Finally, just two weeks back, Avalanche had its biggest fundraise of $230 million taking its total amount raised close to $300 million.
As said, Avalanche is among the few layer-one competitors to the Ethereum blockchain network. The blockchain network boasts a transaction throughput of 4,500 TPS with less than three-second finality. On the other hand, Ethereum can process only 15-30 transactions every second with a 1-minute long finality.
Furthermore, the transaction costs on Avalanche are very less in comparison to those on Ethereum. As of date, Avalanche hosts more than 320 decentralized applications (DApps) to the platform. Some of the popular projects like chainlink, Sushiswap, Circle, and The Graph use the smart contracts infrastructure on Avalanche.
Besides, Avalanche has started attracting projects in the emerging NFT space. Popular sports-themed trading card company Topps minted its Major League Basketball NFT Collection on Avalanche, dubbed “Inception”.
The Avalanche core infrastructure
The major strength of the Avalanche blockchain is its core infrastructure that aims at providing higher decentralization. The core Avalanche blockchain comprises three other integrated blockchains:
- The Exchange Chain (X-Chain): This is primarily related to creating and exchanging assets.
- Platform Chain (P-Chain): This looks after coordinating with the validators and creating subnets.
- The Contract Chain (C-Chain): This looks after executing Ethereum Virtual Machine contracts. A large number of transactions happen in the C-Chain since Ethereum developers can easily build Ethereum-compatible applications using this blockchain.
The Avalanche main network secures and validates all these three blockchains. Avalanche calls the main network as a subnet wherein a “dynamic set of validators working together to achieve consensus on the state of a set of blockchains”. Users can participate in securing the Avalanche network by staking 2000 AVAx tokens currently valued at $142,000.
The subnet also facilitates certain niche use cases that are highly customizable. This can be thus useful to businesses and governments. Besides, the avalanche blockchain architecture also supports private subnets. Thus, anyone who wants to deploy private blockchains can do so.
Expanding Its scope In DeFi
To get broader market acceptability, Avalanche has initiated some key measures. One such is establishing the cross-chain Ethereum bridge. This allows users to seamlessly transfer ERC-20 and ERC-721 tokens between avalanche and Ethereum.
The bridge will facilitate easy migration of Ethereum’s Defi infrastructure to Avalanche. Thus, users will be able to create faster and cheaper transactions as a result. One of the early beneficiaries of the Avalanche-Ethereum bridge is the DeFi player and decentralized exchange (DEX) Pangolin. This DEX allows trading of all tokens issued on avalanche and Ethereum.
The Ethereum-bridge also allows Avalanche users to circumvent the high transaction times in swapping assets. So far, using the avalanche-Ethereum bridge, a total of $1.72 billion worth of assets have been transferred. Apart from Pangolin, other DApps such as Union, Prosper, bZx, JellySwap, and others have joined the Avalanche ecosystem.
Currently, Avalanche is working on bringing two leading DApps on Ethereum to its native blockchain platform. Last month, the blockchain introduced a $180-million Liquidity mining incentive program Avalanche Rush to its platform. This program has been partially distributed to Aave and Curve Finance.
In the initial phase, AVAX will provide liquidity incentives to Curve and Aave users. The Avalanche Foundation has already set aside $27 million worth of AVAX to fund this program.
The Avalanche (AVAX) price rally
Some of the key developments happening on the Avalanche blockchain. have been the reasons behind the recent rally in the AVAX tokens. The launch of Avalanche Rush has been one of the key reasons behind this AVAX rally. Besides, the Avalanche Foundation has raised another $230 million to accelerate DeFi innovation on the platform.
There’s a growing investor optimism surrounding upcoming initial DEX offerings (IDO) dubbed AvaXLauncher. This will serve as the new launchpad and incubator of the Avalanche ecosystem. The two major upcoming IDOs on Avalanche are Oracle and Gaming Project: Breed, Play and Earn.
With the launch of these projects, stakers and holders of AvaXlauncher (AVXL) tokens will receive a small portion of these IDOs through airdrop.
Avalanche (AVAX) is the Son Goku fighting against Freezer vs. Super Saiyajin Goku
Avalanche is the only network with new tech that gets rid of the problems of Classical Consensus and Nakamoto Consensus.
When someone asked explain Avalanche like I’m five, Twitter Handle Avalunch opined, it is the Son Goku fighting against Freezer vs. Super Saiyajin Goku against Freezer. Much faster and efficient. The number of his opponents are irrelevant scaling.
For clarity, Son Goku is a fictional character and main protagonist of the Dragon Ball Manga series created by Akira Toriyama. Manga — Dragon Ball is a Japanese media franchise created by Akira Toriyama in 1984.
The story follows the adventures of Son Goku, from childhood to adulthood, as he trains in martial arts and explores the world in search of the Dragon Balls, seven magical orbs which summon a wish-granting dragon when gathered. Along his journey, Goku makes several friends and battles villains, many of whom also seek the Dragon Balls.
Community response: I very basically understood how the principles of the tech stack ushered in an entirely new paradigm in crypto. It meets the needs of the next ‘mainstreaming era’. A must-own digital asset.
Jokes aside. It would be very beneficial in my opinion to actually see some legit L1 comparisons so we demonstrate AVAX’s superiority.
Emin Gun Sirer opined: “Working with governments and large foundations is critical to continue to bring blockchain tech to mainstream institutions. The Avalanche Foundation is looking forward to helping the UK develop innovative and competitive digital currency solutions.”
Emin stated this in response to a news which read, “A group of crypto advocates and firms are forming a new coalition to push the United Kingdom to issue a central bank digital currency (CBDC)”
The Digital Pound Foundation have announced their launch and they are focusing on supporting “the implementation of a well-designed digital Pound and digital money ecosystem.” The member firms in the process consist of Accenture, Avalanche, Billon Group, CGI Group, Electroneum, Quant and Ripple.
Community: Why are you pushing for the further centralization of power? Why not choose the path of separation of money and state?
Aren’t CBDCs largely against the ethos of crypto i.e. against centralized power?
It is perfectly normal for every clear-headed state to take advice about blockchain from Avalanche.
Have they given an indication of timescale when we could expect I central-bank digital currency? You guys are doing great work.
I think before issuing their own CBDCs they can buy large amounts of AVAX and use that for test purpose. Then they will ban every crypto that is not under control.
Avalanche Price Analysis: AVAX rallies back to $58-$59 previous support, reversal to follow?
- Avalanche price analysis is bearish today.
- AVAX/USD rallied back to previous support.
- Bearish momentum is likely to reverse Avalanche today.
Avalanche price analysis is bearish today as strong previous support has been reached after a strong rally earlier today. Therefore, we expect AVAX/USD to reverse and continue lower later today along with the overall bearish momentum.
The overall market traded in the green over the last 24 hours with Bitcoin up by 4.78 percent. Meanwhile, Ethereum is up by 8 percent, while Polkadot (DOT) leads the market with a gain of almost 18 percent.
Avalanche price movement in the last 24 hours: Avalanche looking to retest previous support at $59 as resistance
AVAX/USD traded in a range of $53.33 – $58.19, indicating substantial volatility over the last 24 hours. Trading volume has declined by 22.4 percent and totals $560.9 million, while the total market cap trades around $12.72 billion, ranking the coin in 14th place overall.
AVAX/USD 4-hour chart: AVAX to reverse today?
On the 4-hour chart, we can see Avalanche price action approaching a strong resistance area, likely resulting in a reversal later today.
Avalanche price action has seen bearish momentum return so far in October after a strong increase over the second half of September. Over the past two weeks, several lower lows and highs have been set, leading AVAX/USD to the $51 current low.
Currently, Avalanche retraces higher as bulls look to set another higher low. Likely resistance will be found at the previous support at $59, and another push lower will follow.
Alternatively, if AVAX/USD breaks above the resistance, we could see a further upside, indicating that a major reversal to the upside might be in play later this week. However, until then, we remain bearish for the Avalanche price and expect it to decline to the $50 mark next.
Avalanche Price Analysis: Conclusion
Avalanche price analysis is bearish today as a strong resistance area was reached over the last 24 hours. Therefore, AVAX/USD will likely reverse over the next 24 hours and look to test the $50 support next.
While waiting for Avalanche to move further, read our guides on the Best NFT marketplaces, NFT history and development, as well as NFT Music.
Shiba Inu outranks AVAX and Chainlink as SHIB becomes the 12th largest crypto by market cap
- Shiba Inu has posted nearly 367% in weekly gains, beating cryptocurrencies like UNI, AVAX, LINK and LTC.
- The jump in SHIB price comes at a time when the token’s ecosystem has 10,000 NFTs, Shiboshis launch lined up.
- Shytoshi Kusama has revealed that SHIB is ready to enter the crypto gaming universe with the launch of Shiboshis.
Shiba Inu is ready to overtake Dogecoin with its rapid growth in market capitalization. The memecoin is currently the most traded cryptocurrency on Binance, Coinbase and Huobi.
Shiba Inu ranks 12th among cryptocurrencies, beats Ethereum-killers and Chainlink
Shiba Inu, a memecoin created anonymously by Ryoshi in August 2020, is now trending as the most traded cryptocurrency across top exchanges. The three tokens SHIB, BONE and LEASH from Shiba Inu’s ecosystem have observed a spike in demand over the past two weeks.
The launch of Shiba Inu’s decentralized exchange platform ShibaSwap and implementation of the “burn mechanism” triggered a rally in the memecoin’s price. The memecoin currently ranks 12th in market capitalization on CoinGecko, the world’s largest independent crypto data aggregator.
Several developments in the SHIB ecosystem have contributed to the ongoing rally. The key factors are the implementation of the burn mechanism, the announcement of the launch of 10,000 Shiboshis on ShibaSwap and the rise in the number of token holders.
Analysts have compared SHIB’s ongoing rally to DOGE’s run to its all-time high. @HsakaTrades, a pseudonymous cryptocurrency analyst, recently tweeted,
Screenshot from what happened when DOGE had siphoned of all the volume from alts during its run earlier and it retraced after hitting its first pit stop at $0.45.
Expecting something similar with SHIB.
s/o @cryptoalle pic.twitter.com/SUv1YOkqAB— Hsaka (@HsakaTrades) October 7, 2021
As Shiba Inu prepares to venture into gaming, holders are expecting a boost in its demand. To begin with, SHIB was facing two key challenges – a lack of liquidity and a lack of ecosystem updates.
With its recent listing on Coinbase, SHIB has overcome the challenge of liquidity to a large extent, seeing how its daily trade volume exceeds $15 billion.
SHIB has overtaken cryptocurrencies like Avalanche (AVAX), Chainlink (LINK), Uniswap (UNI) and Litecoin (LTC) with a market capitalization of $15 billion.
FXStreet analysts have evaluated the token’s price trend and stated that SHIB has exceeded expectations with its rally. Analysts have set a target above $0.00003000.