The AVAX token has risen in value amid a sell-off in Ethereum and Bitcoin.
AVAX has risen 40.4 percent in the last seven days and is currently trading at $116.50. The rally could be attributed to two factors: the addition of USDC, which rose 10.5 percent on Tuesday, December 14, 2021. USDC is a stablecoin issued by Circle that will be used for fast and cheap remittances on the Avalanche blockchain. The seventh blockchain to support USDC is Avalanche.
Avalanche has recently attracted institutional interest. Bitgo, a cryptocurrency custody service, recently stated that it would list AVAX, resulting in it achieving a two-week high of $106.11 on December 16, 2021. BitGo delivers liquidity, custody, and security to institutional investors. Following that, the price fell, only to rise again on Friday, December 17, 2021, following an announcement on Twitter that Avalanche will be working with Web 3.0 accelerator DeFi Alliance. According to CoinGecko, Avalanche recently reached an all-time high of $144.96, which will be reached on November 23, 2021. Avalanche works with Ethereum smart contracts.
Interest from Institutions
Institutional interest in Avalanche’s groundbreaking blockchain technology is growing. Deloitte has announced plans to build a cloud-based disaster-management platform using the three-tiered Avalanche blockchain network. A Bank of America analyst believes Avalanche has the potential to be a serious competitor to Ethereum. Ava Labs has been chosen to participate in the Mastercard Start Path Crypto initiative, which aims to broaden blockchain use cases. Avalanche also received $230 million in institutional investment from Polychain and Three Arrows Capital on September 16, 2021. On December 9, 2021, this announcement was made. During the week of December 15, 2021, AVAX was also listed on FTX and CoInbase in the United Kingdom.
Avalanche’s Value Proposition is Expanding
Avalanche’s three-tiered blockchain aims to embody decentralization, security, and speed all at the same time. With 364 projects active on the blockchain in the last 15 months, Avalanche has earned a reputation as a popular place for decentralized initiatives. DeFi’s overall worth has already surpassed $11 billion. AVAX has a market capitalization of around $28 million. Avalanche surpassed Dogecoin and Shiba Inu earlier this year to enter the top ten cryptocurrencies by market cap. The Avalanche blockchain’s proof-of-stake validation process consumes less energy than other proof-of-work blockchains.