These are exciting times for all cryptocurrency markets. A strong reversal for Bitcoin and Ethereum looms ahead, creating momentum for alternative currencies. In addition, the AVAX price is rising strongly, thanks to ongoing Avalanche ecosystem growth.
AVAX Price In 2021
It has been a wild ride for fans of Avalanche throughout 2021. The AVAX price, which recorded an all-time low of $2.80 on December 31, 2020, shot to an all-time high of $144.96 by November 21, 2021. It is a strong example of how quickly market momentum can turn, especially when it seems things can’t get any worse.
Although Avalanche has taken a steep tumble since that all-time high – like all other markets – its overall momentum remains rather solid. Finding price stability is challenging, but it appears the AVAX price can hold its own near the $90 mark. Moreover, the currency remains in the market cap top 10 with ease, thanks to its valuation of over $22.6 billion.
Strong Technical Fundamentals
One reason to invest in crypto projects is the robust technology stack they provide. Not all projects do so, but Avalanche checks many of the right boxes. Its native EVM tooling support makes it easy for developers to deploy applications on this network. Moreover, Avalanche’s transaction fees are more efficient than Ethereum and will receive further tweaks.
For users who own AVAX, staking remains an appealing option. Although there are some decent hardware spec requirements, it is not unattainable or overly expensive. Moreover, these requirements will likely become lower as Avalanche is developed further. That may have a long-term AVAX price impact, as more people can be drawn to this project.
Dexalot Is Intriguing
Decentralized exchanges have become the new norm for crypto trading. Although they still represent far less volume than centralized platforms, no one can refute the ongoing growth for DEXes. Dexalot is a unique trading platform, as it has a DEX model with a central limit order book. Its IDO will be conducted soon, and the platform will launch with multiple trading pairs that can help stabilize the AVAX price.
NFTs On Avalanche
Like other blockchains, artists can issue NFTs on Avalanche. The Web3 Studios team is the latest to explore this option to build its trading card game. Minting will begin soon, and it will serve as a strong example of how viable non-fungible tokens in the Avalanche ecosystem are. While it may not impact the AVAX price right away, it is still a nifty ecosystem development.
Growing DeFi Support
Most people know this development, but Avalanche is the fourth-biggest blockchain for DeFi TVL. More specifically, it remains ahead of Fantom, Solana, polygon, Tron, and many others. The current TVL of $12.17 billion is impressive and not that far behind BNB Chain. Moreover, Avalanche achieves this with roughly half the DeFi protocols compared to BNB Chain.
That TVL growth can be attributed to projects like AAVA, Trader Joe, Benqi, Curve, and Wonderland. Particularly Trader Joe stands out, as it provides users with multiple ways to make money. Users can drive up the AVAX price by adding more to their stash as users reap financial rewards. Continuing this DeFi momentum will be crucial, but that is much easier said than done.
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