How Avalanche Has Climbed It’s Way Towards The Top
November 23 2021 - 3:11PM
NEWSBTC
If you’ve been paying attention to the broader crypto market
lately, you might’ve noticed the emergence of Avalanche (AVAX).
While many of the biggest coins in crypto have been experiencing
some slight declines, most of which have come after ridiculous
gains throughout the year, Avalanche has been outperforming peers
by leaps and bounds. 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. The
one-month chart tells quite a story, with a price that has roughly
doubled in the past thirty days: AVAX has had stellar Q3 and Q4
this year. | Source: AVAX-USD on TradingView.com This is nothing to
write off. 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.
The surge has led AVAX to surpass meme tokens like Dogecoin and
Shiba Inu in top coins by market cap. At the time of publishing,
AVAX has been neck and neck with DOGE with regards to market cap.
That’s no laughing matter. Meanwhile, some of those top tokens,
including well-established, long-standing players like Litecoin and
Chainlink, have dropped 15-20% over the same time period. So what’s
been the secret for Avalanche’s success lately? Related Reading |
Brace For More Downtrend: 15% Of Bitcoin Supply Is Now In Loss
Opportune Timing: Deloitte Deal Some of Avalanche’s success has to
be credited to ideal timing. Momentum had already been building in
late October and into early November. Last week, our team covered
the story of Ava Labs new deal with Deloitte, aimed towards
building better efficiency around disaster response times. However,
even earlier in the year, our team also released an in-depth report
that highlighted Avalanche as a prime contender for holding a big
piece of DeFi market share. The momentum has since been growing for
the blockchain; in September, The Avalanche Foundation raised
nearly a quarter of a billion dollars. Avalanche also launched a
massive incentive program in recent months to attract investors.
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
example, hit record highs in recent weeks as the token establishes
itself as a firm #2 in NFTs behind Ethereum. And of course,
Avalanche is certainly a viable candidate here as well. Avalanche:
More Than Just Riding A Wave With all of this in mind, don’t
dismiss Avalanche for just having a hot streak at the right time.
The 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 utilizes a consensus model, which means that rather than
a Proof-of-Work or Proof-of-Stake mechanism, the chain utilizes
random voting to validate transactions. This makes the chain much
more difficult to attack and exceptionally efficient with regards
to transaction times and volumes. The Avalanche product leaves us
with plenty to write home about. Furthermore, as many know,
Avalanche is actually composed of several chains, including the
X-Chain, smart contract C-Chain, and the P-Chain. This is
especially developer-friendly, giving blockchain engineers
versatility in products that they are creating. AVAX tokens also
include governance, however the token is subject to a substantial
amount of pre-sale tokens that could be unlocked in the months to
come. While Avalanche is all business, did we really say no memes!?
This is crypto, so some memes are just a prerequisite. Related
Reading | November Crypto Market Turbulence Shakes Holders To Their
Core Featured image from Pixabay, Charts from TradingView.com The
writer of this content is not associated or affiliated with any of
the parties mentioned in this article. This is not financial
advice.
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