One of the top winners this week was Avalanche (AVAX), gaining over 35% this week and over 13% today alone. With a market cap of $ 18 billion, Avalanche is a crypto freak. Let’s take a closer look at AVAX and see what all the hype is about.
What is an avalanche (AVAX)?
Avalanche is a platform for launching custom DeFi applications, tokens, and even trading. AVAX is the native token of the Avalanche platform with a Proof-of-Stake consensus method.
According to their official website:
“Avalanche is an open and programmable smart contract platform for decentralized applications. “
One of the big advantages of Avalanche is the environmentally friendly network. Because AVAX is a proof of stake coin, there is no need to waste energy for mining purposes.
In addition, Ethereum developers can easily use the Avalanche platform to create Solidity compatible dApps. There is a plethora of documents available that make it easy for anyone to create smart contracts on the platform.
Why is the price of avalanches increasing?
One of the main reasons for AVax’s dramatic price increase is due to the Avalanche ecosystem that has been built on the platform.
2) Avalanche was launched in September 2020 and is now experiencing exponential growth in the ecosystem. A large number of DeFi and Web3 game projects have made Avalanche home today and we expect many more in the years to come. https://t.co/yxfYxQO7j0 pic.twitter.com/2FZJ4yjDV9
– DeFi Alliance | is recruiting 🌌 (@defialliance) November 3, 2021
DeFi Alliance tweeted a nice photo summarizing the avalanche ecosystem and the amount of apps available. With such an active ecosystem, it’s no surprise that Avalanche has gained over 478% in the past 3 months.
In other news, Bloomberg recently reported on Avalanche’s $ 220 million fund called Blizzard, dedicated to accelerating the development of their ecosystem.
Setting aside such a large sum to incentivize even more development on the Avalanche platform is a sure way to get developers and traders excited.
Launched in September 2020, Avalanche has over 300 apps on its platform, which is already more than most cryptocurrencies.
AVAX has proven to be a serious contender in the crypto arena, earning it 13th place in terms of market capitalization. I wouldn’t be surprised if Avalanche made it into the top 10 by the end of the year.
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