There is currently a surge in the popularity of decentralized platforms, dApps and non-fungible tokens in the crypto ecosystem. Consequently, the blockchains enabling programmability, scalability and interoperability have struck a bounty, with many native altcoins steadily rising the crypto charts. Avalanche is one such network that has grown well this year and seeks to compete with Ethereum by developing its DeFi ecosystem. This article tries to understand its ecosystem and recent price trends.
Avalanche presents itself as the fastest smart contracts platform in the blockchain industry and has the most validators securing its activity. It is an open, programmable smart contracts platform that can be used to solve various use cases for governments, institutions and enterprises including DeFi, asset issuance, debt financing and digital collectibles.
The project was launched by Ava labs, founded by Emin Gun Sirer, a Cornell University Professor, and Kevin Sekniqi and Maofan ‘Ted’ Yin, two computer science PhDs from the same university. It is fully compatible with Ethereum’s assets, apps and tooling while granting the benefits of higher throughput, speed and lower fees. It is compatible with Solidity, the programming language of Ethereum and can also be used to deploy custom public and private blockchains as subnets.
Avalanche has integrated various DeFi projects such as SushiSwap, Reef, bZx, TrueUSD, and Securitize with its blockchain. Avalanche is also building a bridge to the Ethereum network that will allow for the seamless transfer of assets between the two chains.
AVAX is the native coin of the Avalanche platform. It is used to pay transaction fees and for staking purposes to secure the network. It is currently a top #12 cryptocurrency by market cap with $21.4 billion in value. The total supply of AVAX coins is limited to 720 million with about 31% in circulation today. By staking AVAX as a validator, an annual interest of up to 11% can be earned.
AVAX is the only coin in the top 20 showing an uptrend this week, while all the top cryptocurrencies are in red owing to the bearish mood in the global crypto markets. AVAX is currently priced at $99 - a rise of 15% in the last week. AVAX crossed the $100 mark for the first time this week. This may be due to the addition of Ethereum based stablecoin Tether (USDT) to the Avalanche blockchain.
Source: TradingView, Binance
AVAX already has tapped key support levels on its rise since October and currently has strong support at $91 should it witness any dips. It is also firmly trading in a parallel channel since early November, giving it a near-term resistance in the $104-105 range should it move upwards. Its previous ATH - of $101.8, will also need to be reclaimed before fresh highs are put in.
The future belongs to DeFi, and AVAX has become one of the forerunners this space by building products suitable to institutions and enterprises. Experts predict that AVAX could soon be a top 10 cryptocurrency which would mean a strong growth of more than 50% at current prices.
Disclaimer:This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.