Can Avalanche Build On Its Current Momentum?

By Tikur | TikurCrypto | 13 Jan 2023

This week was awesome for most coins (fingers crossed I won't jinx it). Bitcoin and Ethereum broke their resistance and are doing relatively great, and most alt-coins are also performing well. Avalanche is one of the coins that has performed exceptionally well this week with an impressive 25% gain. But before going into on 'why?', lets discuss few things about it.

What is Avalanche?

Avalanche is a layer 1 blockchain that first launched by Ava Labs, which was founded by Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin in 2020. The Avalanche blockchain consists 3 blockchains namely, X-Chain, C-Chain and P-chain which able the network have high transaction speed and scalability.

Avalanche is one of the major competitor of Ethereum and hope one day to be on top. The platform focuses on building its own community, dApps and DeFi.

Avalanche Token (AVAX)

Avalanche has its own native token called AVAX. Among the uses of the token are the following:

Pay fees on the platform
Staking
Distributing rewards
As a unit of account between subnets.

When it comes to its tokenomics, there are a total of 720 million AVAX and it's distributed as follows:

50% for staking rewards
10% for the Avalanche team
10% for public sale
9.26% for the foundation
7% for the community
5% for partners
3.5% for private sale
2.5% for airdrop
2.5% for seed sale
0.27% for testnet incentive program.

AVAX has an all-time high price of $144.96 registered in 2021 and an all-time low price of $2.80 registered in 2020. Currently the price of AVAX is around $15 which showed a substantial growth in just a few days.

AVAX price in the last 7 days

The token is available on most major exchanges such as Binance, Kucoin and Coinbase.

What's Behind Avalanche's Current Rally?

The news of Avalanche's partnerships with major companies in the last few days is what definitely driving the price of AVAX up. One of the major partnerships is with one of the world's largest cloud provider, Amazon Web Services (AWS). It is believed that this partnership will be the bases for wide range adoption of blockchain technology.

Avalanche also announced that it has partnered with Shopify. Merchants on the Shopify platform can now sell Avalanche NFTs on their own storefront without sending their customer to other NFT marketplaces.

Final Thoughts

Great partnerships are very important to boost any platform's performance, and Avalanche is definitely partnering up with the right companies. This is leading investors to look at AVAX and try to capitalize on it, resulting in the price of AVAX gaining an impressive 25% in the last 7 days.

But after these news die down and the hype around Avalanche decreases, it is my personal opinion that the price will start following Bitcoin prices as usual, as most coins do.

So what are your thoughts on Avalanche?...... Let me know in the comment section.