In recent weeks, Avalanche (CRYPTO: AVAX) has been one of the best-performing cryptocurrencies. It has jumped even more today as of 9:45 a.m. ET, Avalanche has risen 13.6% in the last 24 hours. During the previous week, this token has increased more than 45% on a strong rise, putting Avalanche in the top 10 in terms of market value.
What Did Happen
Following news that President Joe Biden’s Build Back Better plan may not be completely dead in the water, the stock and crypto markets have risen a lot today. Last night, Sen. Joe Manchin reportedly talked to Biden, which made people think that this deal could still work.
However, the token-specific factors that have helped Avalanche over the last week also seem to be supporting this token, which is why it’s going up. Looking at the BofA analyst’s note from last week, investors seem to be paying attention to Avalanche because this platform has a faster time to finality (settlement) and lower costs than other blockchains.
Avalanche Taking Risks
Importantly, today’s rise brings Avalanche within 20% of its all-time high, which was set about a month ago. Investors seem to be taking a hard look at Avalanche like they do with many of the fastest-growing tokens in the market. Then again, this week’s macro news seems to have investors back in the risk-on mode.
Even though Avalanche has a lot of momentum built into it, today looks like the perfect storm for it. Any token discussed in the same way as Ethereum should be looked at.
Avalanche has been getting a lot of attention recently because developers and users are getting more and more excited about the blockchain. This is especially true in decentralized finance (DeFi), non-fungible token (NFT), and gaming sectors. Investors look at total value locked (TVL) as a key measure of growth in the DeFi world. Avalanche is said to have overtaken other scaling platforms like Solana and Polygon in terms of TVL. Currently, the Avalanche network has a total value of $12 billion, which is close to 10% of the $150 billion worth of TVL on the Ethereum network.
What Will Happen
Avalanche’s low fees and quick transaction speeds have made it a network that experts think has a lot of growth potential compared to the rest of the field. Looking at the numbers in this analysis, this idea seems like it has a good chance of being true.
There’s no doubt that Ethereum is fighting other high-profile Ethereum-killers for market share in the rapidly growing world of DeFi. It’s not as simple as one might think to pick a token that will end up taking the lead in the DeFi market share. Avalanche is very scalable and has very good numbers right now. If other low-cost, high-speed networks like Solana slow down, this could mean that Avalanche’s growth will not be as linear as it was in the past, at least in the short term.
Then again, it’s clear that Avalanche is becoming a real competitor to Ethereum. So, it’s also likely that Avalanche will get more attention now that it’s a top-10 token in terms of market value.
It will be interesting to see where this token goes from here, so stay tuned. Token: This is one of the things I’m keeping an eye out for right now.
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