After Bitcoin (BTC) slowed its rally and returned just below $41,000, Avalanche (AVAX) became one of the more active winners. There are some signs that this time BTC may continue to rise to $50,000, and AVAX has a chance to move forward and regain its all-time highs. AVAX trading volumes are also close to its higher range.
AVAX is a native token of one of the largest protocols, it has survived other sell-offs and has performed better compared to other assets. It has become a safe haven, often rising with Terra (LUNA).
Value Lock Protection AVAX
The protocol on Avalanche locks in more than $11B in nominal value and holds a large AVAX reserve.
The Aave and Trader Joe DeFi protocols ensure significant turnover for the Avalanche network as well as small startups. Due to its speed and low cost, Avalanche also attracts NFT collections and games.
In the short term, AVAX is one of the most traded assets on the Binance exchange, even replacing the volume of Binance Coin (BNB). AvAX has a slightly lower liquidity score compared to Ethereum (ETH) and is a more liquid asset, but still relatively easy to move the price up or down.
AVAX has also successfully replaced Binance Smart Chain's previous position as one of the largest centers of value.
Where will AVAX go
The immediate expectation for AVAX is to rise above $100. AVAX has already surpassed LUNA in terms of market cap, but will take a higher price tier to "skip" Solana (SOL). AVAX now depends on the final recovery of the bullish trend to reach higher valuations. The current rally remains independent of BTC's price performance, which moves according to its own logic based on the interaction between leveraged positions.
Will AVAX crash again?
2022 is envisioned as a new bear market, and this week's rally is just a small episode ahead of a bigger price decline.
AVAX has shown that it can easily erase 50% of its value and has fallen from a high above $134 to a recent low of $55.
AVAX is added to Wirex wallets
AVAX assets and the entire Avalanche ecosystem will be available on wirex wallets. Wirex is one of the full-fledged fintech applications that also host crypto assets.
Wirex recently partnered to issue contactless VISA cards for U.S. users, allowing the consumption of all cryptocurrencies in their wallets.
The wallet will transact assets on Avalanche C-Chain, and no other extension solution, X-Chain, will be added at this time. X-Chain is only accessible through a dedicated Avalanche wallet, while C-Chain assets are also available through the MetaMask wallet and are compatible with Ethereum virtual machines. AVAX tokens can run on two chains and can be transferred between C-Chain and X-Chain.
One of the big changes will also be access to all tokens in the Avalanche ecosystem. Avalanche hosts Pangolin Exchange, SushiSwap and other well-known multi-chain DeFi tokens, as well as hundreds of token-based projects of its own choosing. Avalanche is compatible with Ethereum, although instead of boasting of being an "Ethereum killer," it implements additional extensions at a low cost.
Avalanche has a green solution
One of the advantages of Avalanche is the low energy consumption of the network. Avalanche claims that it uses less than 0.3% of the energy of the Ethereum network, which is negligible compared to the Bitcoin network.
The Avalanche network's annual energy use is equivalent to the energy use of 46 households, while Bitcoin's electricity usage is enough to supply an Austrian-sized country.
Due to its ease of use and accessibility, Avalanche is also a hub for NFT collections, with daily airdrops and giveaways. Avalanche hosts Crabada, one of the most popular casual gaming worlds and a potential competitor to Axie Infinity.
The addition of DEX and Avalanche's passive earning potential makes the network a major part of the crypto space, not just a short-term attempt to push up prices.
The top apps on Avalanche attract thousands of users, which is a feat for most decentralized startups.