Why is Avalanche crypto catching the eye of investors?

3 min read | August 27, 2021 06:18 PM PDT | By Sanjeeb Baruah

Google News:

Why is Avalanche crypto catching the eye of investors? — Image source: DedMityay, Shutterstock

Recent News

Venari Minerals NL Announces Placement of 5 Million Shares to Settle C...

OOH!MEDIA Limited Reports Expiry of 420,704 Performance Rights Impacti...

Kalamazoo Resources Plans Placement of 1.32 Million Shares to Fund Exp...

EBOS Group Limited Allocates 8,407 Shares Under Employee Incentive Pro...

Make Kalkine Media
My Trusted Source

Highlights

Avalanche prices surged 7.31 percent as SushiSwap joins its program, Avalanche Rush.

Aave and Curve, the DeFi applications, had joined the program earlier.

Avalanche price rose by 251 percent since August 1.

Cryptocurrency Avalanche (AVAX) jumped 7.31 percent to US$47.52 at 1 pm ET on August 27. The cryptocurrency doubled its value over the past week after SushiSwap, the decentralized exchange (DEX), joined its Avalanche Rush program.

On August 18, Avalanche announced a US$180 million 'DeFi incentive program' called Avalanche Rush to expand its decentralized finance (DeFi). The program aims to attract leading DeFi applications to its platform. SushiSwap is the latest one to join. The program has reportedly increased the confidence of investors in layer1 blockchain.

Also read: Nine best stablecoins of 2021

Avalanche is not the only layer1 blockchain entering the DeFi market. Blockchain platforms Solana and Tera are also trying to capture the DeFi market. Layer1 blockchain is the platform on which financial applications are developed. Ethereum is one such platform.

DeFi has become popular among institutional investors and venture capitalists. They are keen to invest in a platform alternative to the leading Ethereum. Recently, Solana raised US$314 million from investors like Polychain Capital.

DeFi popularity

With investors pouring in funds, the layer1 blockchain platform is trying hard to attract DeFi projects and users. The collaboration of Sushi and Avalanche will allocate Sushi and AVAX tokens worth US$7.5 million as liquidity mining incentives, the companies said in a release. Liquidity mining is the reward users earn in the form of tokens for committing assets for protocols. DeFi projects attract users with such rewards.

Source: Pixabay.

Ethereum remains the leader in DeFi with over 200 protocols. However, it is unable to handle increasing numbers of investors. As a result, other networks are getting an opportunity to get into the DeFi market.

Also read: Bitcoin touches $50,000 for the first time since May

What is Avalanche?

Ava Labs has developed Avalanche, which is a proof of stake blockchain. Avalanche processes over 4500 transactions per second without losing the balance associated with blockchain during the data transfer. Avalanche platform is used to develop decentralized applications like 'dapps' and custom blockchain networks.

Avalanche has funding from Bitmain, a China-based crypto mining machine maker, Galaxy Digital, Dragonfly Capital, and a16z. Its price has jumped by 251 percent since August 1.

The token is on course to reach US$59, its all-time high. Its market capitalization is US$8.3 billion. It ranks 20^th on the Coinmarketcap list of cryptocurrencies. A total of 174 million tokens of AVAX are in circulation currently.

Bottom line

Avalanche provides a layer1 blockchain platform that is used for DeFi. As the DeFi sector is growing, Avalanche is expected to grow.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.