Launched in 2020, the cryptocurrency jumped 40% in one week, making it the biggest gainer among the top 10 cryptocurrencies by market capitalization.
If Bitcoin and Ether lag since Sunday, cryptocurrency is breaking all records: an avalanche. In one week, the price of this token jumped by 40%, achieving the largest increase of the 10 most capitalized cryptocurrencies on the market. Avalanche also surpassed dogecoin, Elon’s favorite cryptocurrency, with a market cap of more than $13 billion. How can we explain this sudden investor interest?
As a reminder, Avalanche is the native cryptocurrency of the Avalanche blockchain, which was launched in 2020. It wants to be the blockchain of blockchains. The number of transactions with this cryptocurrency exceeding $100,000 “peaked at almost 1,000. Although the current level remains below the highest level recorded during the previous bull market, this is considered a positive sign of the current bullish trend,” the specialized media points out Cryptobatato.
“Investor Optimism”
Similarly, the giants of the financial industry recently called on the Avalanche Foundation, which is behind the associated blockchain, for projects to “tokenize” assets, “further strengthening the optimism of investors”, as we can read.
Compatible with smart contracts, Avalanche operates mainly in the framework of so-called decentralized finance (DeFi). We remind you that DeFi is an open financial system accessible to all without discrimination, which allows access to traditional financial services such as loans or deposits on platforms, while maintaining control over your cryptocurrencies. Trader Joe’s related decentralized exchange (DEX) is also benefiting from the recent avalanche.
If this increase is seen in the context of cryptocurrency growth over several months, remember that the avalanche price remains 75% below its all-time high of $146 on November 21, 2021.