Emerging DeFi platform Avalanche (AVAX) is strengthening again, marking double-digit daily gains, supported not only by the recent rally in the crypto market but also by the rising popularity of DeFi and dApps lately. At the time of writing, AVAX/USD is trading at around $49.52.
DeFi’s Rising Popularity Spurs Growth
Little known until recently, Avalanche had a strong performance through the month of August when the value of its native token soared by over 200% to an ATH after the announcement of liquidity mining program Avalanche Rush. It is now becoming one of the fastest growing blockchain ecosystems worldwide, with the TVL in its DeFi protocols soaring from under $180 million at the start of August to exceed $2.3 billion till date. On the back of its newfound popularity, the blockchain released its bridge to enable transfer of assets from Ethereum into Avalanche once again, which has gone on to handle the transfer of over $1 billion worth of Ethereum assets into its ecosystem so far.
The bullish moves in Avalanche have received further support from news about DeFi protocol Trader Joe raising $5 million in its token sale earlier this week. Trader Joe went live in July and has already gone on to become the second most popular DeFi protocol on the Avalanche network. The decentralized trading platform on Avalanche offers its users a wide selection of tokens to trade as well as a superior user experience, and the fresh round of funding will allow the team to expand further and focus on developing its offerings further.
Bullish Forecast by Analysts
Analysts also foresee a scope for Avalanche to continue its bullish momentum and post further growth in the coming weeks. Popular crypto trader and analyst Michaël van de Poppe has called it a top performer to watch out for this month, along with Cardano and Solana.
Analysis by Glassnode also reveals a similar outlook, crediting the announcement of the incentive program Avalanche Rush for the massive growth in its popularity and price lately. In a recent report on DeFi’s future, the firm notes, “Alternative smart contract platforms like Avalanche and Solana have found massive 30 day token price growth as hints of activity and bets on a multi-chain future start to garner attention. Projects on Avalanche remain marked by being clones of existing projects on Ethereum, attracting this growth through incentives and inflated yields that may or may not persist long term.”
Key Levels to Watch
On the 4-hour price chart of AVAX/USD, moving averages and the MACD are suggesting a bullish bias among investors at the moment. However, the momentum indicator is revealing an interest among sellers as well.
Avalanche’s price is holding just above the pivot point at $48.92 and further buying pressure can see a test of the first resistance at $57.61. An increased interest in buying the cryptocurrency by investors can see the price headed even higher towards the second resistance at $67.75.