Avalanche has increased its market cap from $3.2B to $14.35B in 2 months.
The Avalanche growth is accompanied by a massive jump in DeFi TVL.
In a recent crypto market development, AVAX, the native token of the Avalanche ecosystem, has defied market trends, showcasing a notable surge, with a 340% increase in market capitalization over two months.
As the native token of the Avalanche ecosystem, AVAX has not only weathered the storm but has also outpaced its peers, signaling a compelling narrative for both investors and enthusiasts.
Avalanche’s Rapid Price Rally
AVAX’s recent price rally has been nothing short of spectacular. On Tuesday, the token breached the $40 threshold, skyrocketing to an intra-day high of $43. However, at the time of writing, AVAX has pared off some of the gains and is priced at $39.16, up 9% over the past 24 hours and an impressive 134% increase over the past 30 days.
This surge has propelled Avalanche’s total market value from $3.25 billion in mid-October to a staggering $14.35 billion. Notably, this places AVAX above Dogecoin with a market cap of $13.8 billion. Avalanche recently secured the ninth position on the CoinMarketCap ranking.
It is worth mentioning that the success of AVAX is not isolated. Other tokens within the Avalanche ecosystem are also experiencing notable gains. JOE (JOE), the native token of Avalanche’s decentralized exchange Trader Joe, and QI, the native token of Avalanche’s liquid staking protocol Benqi, have recorded 5% and 20% gains over the last 24 hours. Additionally, Coq Inu (COQ), a memecoin built atop Avalanche, has witnessed a 22% increase during the same period.
The interest in Avalanche is further emphasized by a crypto fund flows report from CoinShares, where Solana and Avalanche saw inflows of $3 million and $2 million respectively, maintaining their status as “firm favorites” in the altcoin sector following the recent price declines in major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
Bullish Outlook on Avalanche
Avalanche’s positive momentum is further supported by technical analysis. AVAX is currently trading above a crucial demand area, indicating robust support between $15 and $20. The Relative Strength Index (RSI) at 89 suggests that bulls are in control, and all major moving averages positioned below the price are pointing upward, reinforcing the bullish outlook.
On-chain metrics from IntoTheBlock’s global in/out of the money (GIOM) model also indicate solid support levels for AVAX. The support zone between $15 and $20 is particularly strong, with a large number of addresses having previously bought AVAX in this range.
Additionally, the growth in Total Value Locked (TVL) within the Avalanche ecosystem mirrors the price increase. According to DeFiLlama, the TVL on Avalanche rose from $482.93 million on October 15th to the current value of $885.67 million. This increase in TVL signifies rising demand among large on-chain users and is often associated with increased development activity.
Avalanche’s success is further solidified by strategic partnerships and ecosystem expansions. High-profile collaborations, such as that involving JPMorgan’s blockchain Onyx utilizing an Avalanche subnet in a proof-of-concept trial and Citi developing a blockchain solution for FX trading on Avalanche, demonstrate the platform’s growing recognition and utility.
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