What Avalanche investors need to know about this ‘very bullish thing’

Launched on the mainnet this time around last year, Avalanche has already become one of the most prominent names in the smart contract space. Along with its surge in popularity, the price of the native AVAX token has also phenomenally risen in the course of time.

Consider this — On 1 August 2021, Avalanche was the 47th largest crypto and had a market cap of just $2.2 billion. A little over a month down the lane, this token already has a cumulative capitalization of over $11.5 billion and is already a part of the top-20 crypto-assets.

What has been driving the surge?
Being strong on the developmental front has always proven to be a boon in the crypto space. Only with regular updates and upgrades, projects have been able to maintain their relevance. Avalanche’s development activity has been going on at a decent pace of late, despite the setback during the end of August. Interestingly, at the time of writing, this metric was at par with mid-May levels.

Source: Santiment

A couple of crucial developments in the ecosystem have triggered this uptick. For starters, the Avalanche ecosystem’s launchpad — AvaXlauncher, has been preparing for two upcoming Initial DEX Offerings. An IDO is essentially when a project launches a token through a decentralised liquidity exchange. Just like how startups initially receive venture captial before launching, projects issuing Initial DEX Offerings receive financing from individual investors.

Now notably, the IDO prioritization would be based on the amount of AVXL users stake. The ecosystem’s native AVXL token was, listed only a couple of days back.

Within the first 24-hours of AVXL’s listing, the volume traded on PancakeSwap amounted to $8.8 million while the same on MEXC totalled to $7.1 million. With a listing price of merely $0.0022, this token went on to reach an ATH of $0.48 [up 220x] on MEXC and $1.11 [up 508x] on PancakeSwap.

Thus, having this token alongside AVAX on portfolios would end up fetching investors handsome returns in the coming months. A host of people from the community are already bullish about the same.

Further, with every passing week, Avalanche has been able to impose its dominance in the space. Consider this — during the initial few days of August, the market cap dominance of AVAX oscillated in the 0.1% and 0.2% range, while at the time of writing, the same was as high as 0.5%. Similarly, the risk-adjusted returns of the asset has also doubled since the beginning of August. Having said that, it should be noted that, the Sharpe Ratio of AVAX was high as 8.02 at press time.

Source: Messari

The circulating supply too, for that matter, has been increasing, with the same revolving around 2.2 million lately. This essentially means that more tokens have been circulating in the market. By and large, the aforementioned hike has been accompanied by a rise in trading volume too, highlighting the genuine interest for the AVAX token.

Source: Santiment

By fetching investors lofty short-term RoIs, both these tokens have been able to garner traction, especially through the word of mouth. If the same continues, the network would get even more widely adopted and the Avalanche ecosystem would be able to continue thriving in the space.

forex and cryptocurrency expert trader; telegram- https://t.me/jamilapatersonofficial

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jamilapatersonofficial

jamilapatersonofficial

forex and cryptocurrency expert trader; telegram- https://t.me/jamilapatersonofficial

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