If you’ve been paying attention to the broader crypto market lately, you might’ve noticed the emergence of Avalanche (AVAX). Although many crypto’s biggest coins are experiencing slight losses, some have had incredible gains in the last year, Avalanche is outperforming them all by leaps.
If you’re not familiar with the blockchain, spearheaded by Ava Labs, now might be the time to get acquainted. The $AVAX token has found it’s way to aggressively challenging the top 10 cryptos by market cap – no small task – and there’s been no memes necessary to make it all happen.
When It Rains, It’s… An Avalanche?
While the dictionary definition of an avalanche is “snow, ice, and rocks falling rapidly down a mountainside,” the AVAX token has been… exactly the opposite in recent weeks. With a nearly doubled price in just thirty days, the one month chart is quite interesting.
AVAX had a stellar quarter and fourth this year.Source: TradingView.com - AVAX USD | Source: AVAX-USD on TradingView.com
These are not to be ignored. In fact, if you look at the top 20 tokens by market cap, excluding stablecoins, at the time of publishing only two tokens have a green chart over the past 7 days: Crypto.com’s token, $CRO, which has performed well after sealing in the naming rights to Los Angeles’ formerly-known Staples Center, and of course, Avalanche. AVAX is now the most popular coin in terms of market cap, surpassing meme tokens Shiba Inu and Dogecoin. AVAX was tied with DOGE in terms of market capital at the time this article was published. That’s no laughing matter.
During that same period some top tokens like Chainlink or Litecoin, which are long-established and well-known, dropped between 15-20% to 15%. So what’s been the secret for Avalanche’s success lately?
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Opportune Timing: Deloitte Deal
Some of Avalanche’s success has to be credited to ideal timing. The momentum had been growing since late October and early November. Our team recently covered Ava Labs latest deal with Deloitte. This is a move to increase efficiency for disaster response time.
Our team published an in-depth report on Avalanche earlier in the year. This highlighted Avalanche’s potential to capture a significant share of DeFi market. As the blockchain market has grown, momentum is growing. In September, nearly half a million dollars was raised by The Avalanche Foundation. Avalanche has also created a huge incentive program to draw investors in the recent months.
Ethereum challengers that offer substantially lower gas fees, show strong potential in DeFi and NFTs, engage in more environmentally-friendly transactions, and conduct fast transaction times have been given their opportunity to shine this year – arguably as much, if not more so than in years past. Solana for instance, has seen record-breaking numbers in the last few weeks, establishing itself as #2 in NFTs after Ethereum. Avalanche, however, is a potential candidate.
Avalanche: It’s More Than Riding A Wave
With all of this in mind, don’t dismiss Avalanche for just having a hot streak at the right time. Token Does have fundamentals that justify it’s surge in price given the heat in the DeFi and NFT space lately, and offer plenty of reason for positivity.
The team at Ava Labs haven’t gone full-force in marketing, and rather, have focused on in-depth whitepaper details and building on the chain’s fundamentals. Avalanche employs a consensus model. It does away with Proof-of Work and Proof-of Stake mechanisms. Instead, it uses random voting to validate transactions. The chain is much harder to hack and extremely efficient in terms of transaction volumes and times. There is much to love about the Avalanche product.
Avalanche, which is composed of multiple chains such as the X-Chain and smart contracts C-Chains, can be used to create a variety of products. It is extremely user-friendly and allows blockchain engineers to create products they like. The governance of AVAX tokens is included, though the token may be locked with a large number pre-sale tokens.
Avalanche may be all business but did we actually say that? no memes!? It is called crypto. so some memes are just a prerequisite.
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Featured image taken from Pixabay. Charts taken from TradingView.com Disclaimer: The author of this content has not been associated with or paid any money to the companies mentioned. This article is not meant to provide financial advice.