Avalanche (AVAX) Joins the Altcoin Boom
Avalanche (AVAX) is yet another decentralized protocol to outperform altcoins. Smaller crypto projects are swiftly recovering from their June crash, possibly extending their rallies to new highs. AVAX was the next asset to be triggered by the trend, which boosted ADA, LUNA, SOL and NEAR.
AVAX traded at $23.45, up more than 25% overnight, with a sudden shift in trading activity. AVAX trading volumes jumped close to $1B after more than a month of depressed trading.
AVAX also turned out to be one of the more robust performers in 2021, getting a boost from the BTC bull market, as well as a return to altcoin speculation.
Is AVAX Just a Speculative Coin
AVAX may be lining up among purely speculative assets with no real ecosystems, such as ADA and ETC. But the Avalanche platform is actually one of the more active venues for secondary token creation and trading activity.
In that way, AVAX is a network with a similar mission to Polygon (MATIC) and Polkadot (DOT). Avalanche aims to create a faster and cheaper method of running smart contracts, while also making connections to older smart contract platforms.
The Avalanche protocol is one of the most active DeFi networks, with multiple yield farming and decentralized trading projects built on top of the protocol. However, most of the projects are still struggling to attract more than a few hundred users per day. The Pangolin exchange is the most active app on the network, with about 1,600 users per day.
The project also includes multiple secondary coins, which pose a greater risk and are open to the flaws of decentralized trading.
The AVAX asset also exists on Binance Smart Chain, with the possibility to participate in additional decentralized trading and passive income projects. The Binance Chain smart contract now contains more than 72M AVAX out of 173M AVAX in circulation.
Is AVAX Easily Accessible
AVAX, like many other hot assets, is still mostly reliant on international cryptocurrency trades. The Binance International exchange carries AVAX for traders outside the USA.
Despite the pairings on KuCoin and OKEx, the AVAX/USDT trading pair on Binance is the most important hub of activity, concentrating more than 32% of all AVAX trades. The asset is not offered to US residents, and there are only speculative mentions of AVAX getting listed on Coinbase.
The Avalanche platform is highly popular in crypto-friendly countries, building risky, but potentially lucrative yield tokens and liquidity pairs.
How to Hold AVAX
The AVAX asset requires the creation of a specific wallet for this asset, which may also contain coins working on the Avalanche network.
AVAX can also be transferred through Trust Wallet, at least when it comes to coins on the Binance Smart Chain.
Currently, the Exodus wallet has not yet listed AVAX. The Avalanche wallet also includes a staking function, allowing up to 10.3% annualized gains for staking and validating.
The total AVAX supply will continue to rise gradually, reaching a hard cap of 720M. Coins locked for DeFi and staking will limit the supply of AVAX.
Can AVAX Go Higher
The price moves of less liquid altcoins are harder to predict. AVAX is already receiving speculative price predictions for a higher price range.
AVAX has peaked at above $53 in February 2021, followed by highly volatile trading and a dip to a yearly low around $10. AVAX remains attractive for its fast recoveries and the potential to multiply its price.
AVAX remains within the top 10 of DeFi tokens based on market capitalization, lining up with projects like The Graph (GRT) and Pancake Swap (CAKE). Since DeFi is concentrated by popularity, AVAX remains a prominent presence with the potential to attract more social media attention and users.
Besides a Binance Smart Chain contract, AVAX also has a bridge with ETH and an agreement with ChainLink (LINK) for oracle data for its smart contracts.
AVAX is thus well integrated into the DeFi ecosystem, getting ahead of Cardano, Tezos and other platforms that lag in tokenization and smart contract deployment. AVAX is thus getting a cut from the DeFi space where ETH-based projects lock in $80B, with another $25B in Binance-based projects and more than $9B in TRON-based projects.
Avalanche Branches into NFT
The Avalanche platform is also making use of the increasing hype for NFTs linked to crypto collectibles. The platform is open for the creation of tokens proving the authenticity of image collections, and has already opened a robust marketplace.
Avalanche is thus ahead of older networks in unleashing its NFT potential.
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