In two months, cryptocurrency markets can see a lot of change. Avalanche, and AVAX, its native cryptocurrency are two prime examples.
The token was trading at $9 during the market crash of July 20th, but it surged by triple-digits to hit an all-time high of nearly $80 today. This was after several consecutive records set last week before the market-wide crash.
The fact that AVAX registered such large price increases in such a short period of time has attracted the attention and many are keeping an eye on AVAX. It’s worthwhile to review what has been happening with AVAX lately that could have triggered these movements.
AVAXUSD. Source: TradingView
Avalanche, which was launched last year, has been very active in the recent months in terms of forming partnerships with other cryptocurrency projects. One of the most important could be Aave, a popular DeFi protocol.
Voting is currently underway to determine whether investors want Aave’s network to be deployed on Avalanche. If it is approved, it could lead to an increase in the TVL for Avalanche. Aave assets on Ethereum might be transferred.
The two parties collaborated with BENQI, an algorithmic liquidity trading protocol built on Avalanche. They released a $3,000,000 liquidity mining initiative that aims to increase growth in the decentralized finance sector.
Alpha Finance Lab also used the Avalanche Blockchain to launch its second version of the Homora network. This is part of the team’s goal to release it on other chains and layer-2 options.
Avalanche was also integrated by OpenOcean, the CeFi and DeFi aggregators, to increase liquidity on its network.
In the last few months, the Total Value Locked (TVL), on Avalanche, has seen a significant increase, especially after the launch of DeFi’s incentive program supported by Curve Finance – Avalanche Rush.
In mid-August, the TVL was approximately $250 million. It soared to $3 billion in the month that followed, just before the market crash decimated millions.
Jay Kurahashi–Sofue (VP Marketing at AvaLabs, the organization behind Avalanche) commented on the substantial increase despite the fact that only $5 million has been spent in incentives.
Avalanche Total Value Source: DeFiLlama
Private Sale: $230M
CryptoPotato reported a significant development in Avalanche recently when the team announced a $230 Million investment round. The event featured notable participants such as the crypto funds Polychain Capital and Three Arrows Capital.
In the blog post, it was explained that the funds will be used to support and accelerate growth of enterprise applications and decentralized finance protocols using the Avalanche blockchain.
The project will offer grants, token purchases, as well as other types of investment and support. The fundraising event was announced by Avalanche in the summer. It actually occurred before the native token surged to $80.
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