fbpx
Connect with us

Bit Coin

3 reasons why Avalanche (AVAX) price is up 200% this month

Published

on

3 reasons why Avalanche (AVAX) price is up 200% this month

Layer-one blockchain networks like Bitcoin (BTC) and Ethereum (ETH) form the foundation of the cryptocurrency ecosystem and enable smart contract functionality that has allowed the creation of new industries like decentralized finance (DeFi) and nonfungible tokens (NFT).

Avalanche (AVAX) is a relatively new layer-one solution that has recently seen a significant increase in price and adoption as the dominant smart-contract platform (Ethereum) continues to struggle with high transaction costs and slower processing times than its competitors.

Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $12.24 on Aug. 3, the price of AVAX rallied 205% to a multi-week high at $37.42 on Aug. 20 as its 24-hour trading volume surged to more than $1.4 billion.

AVAX/USDT 4-hour chart. Source: TradingView

Three reasons for the significant price growth from AVAX are its rapidly expanding DeFi ecosystem, the release of the Avalanche bridge to Ethereum and the protocol’s unique tokenomic design that offers dynamic fees and a token burn mechanism.

Avalanche Rush expands the DeFi ecosystem

One of the biggest developments to happen for the Avalanche protocol was the announcement of Avalanche Rush on Aug. 18, a $180 million liquidity mining incentive program launched in conjunction with Aave and Curve that is designed to introduce more applications and assets to its growing DeFi ecosystem.

Experience the power of #Avalanche. Welcome to #AvalancheRush, the $180M liquidity mining incentive program in collaboration with leading DeFi dapps–both on and off Avalanche– starting with @aaveaave and @curvefinance. And, this is just Phase 1! https://t.co/YGrrVB7Uqc

— Avalanche (@avalancheavax) August 18, 2021

Phase 1 of the Rush program is set to begin in the near future and  will allow AVAX to be used as liquidity mining incentives for Aave and Curve users over a 3 month period.

A total of $27 million worth of AVAX has been set aside by the Avalanche Foundation to fund the incentive program with additional allocations planned for phase 2.

The program was designed to demonstrate the Avalanche Foundation’s commitment to scaling DeFi on the network and helping to “create a more accessible, decentralized, and cost-effective ecosystem.”

Evidence of the growth of DeFi on the Avalance network can be found in the increasing total value locked (TVL) in protocols on the network, such as Pangolin and Benqi Finance which recently surpassed a TVL of $300 million.

Ethereum bridge facilitates asset migration

A second reason for the bullish growth seen in the Avalance ecosystem over the past few weeks is the release of the Avalanche Bridge (AB) on July 29. This “next-generation cross-chain bridging technology” enables the transfer of assets between the Avalanche and Ethereum networks.

The Avalanche Bridge (AB) launched just 3 weeks ago.

Today, AB officially transferred over $100M in tokens to and from Ethereum.

Interested in using high-performance DeFi apps, with low transaction fees? Transfer your assets, and try #Avalanche DeFi! https://t.co/UAY69mSUgW pic.twitter.com/FrN69Ev7pA

— Avalanche (@avalancheavax) August 19, 2021

As shown in the above tweet, in the three weeks since the AB was launched, it has transferred more than $100 million in token value between the two networks as holders seek lower-fee environments to conduct their transactions.

The AB is estimated to be five times cheaper than the previous Avalanche-Ethereum Bridge (AEB) and it is purported to offer a “better user experience than any cross-blockchain bridges launched to-date.”

If Ethereum is unable to get a handle on high transaction costs in the near future, there is a good chance that assets and liquidity will continue to migrate to chains like Avalanche as their DeFi ecosystems grow in size and value.

Related: Avalanche (AVAX) in ‘overbought’ zone after 100% gains in a week — Correction ahead?

Transaction burning improves AVAX tokenomics

A third reason for the increasing interest in the Avalanche network is the protocol’s unique tokenomic structure that includes a transaction fee burning mechanism that helps reduce the circulating supply over time.

— Avalanche (@avalancheavax) August 20, 2021

As noted in the above tweet, all fees on Avalanche are burned for the benefit of everyone in the community as the hard-capped supply of 720 million AVAX is guaranteed to decrease over time. This could help increase the value of the remaining tokens in circulation.

At the time of writing, more than 163,000 AVAX have been burned, a figure which increases more rapidly as more users transact on the network.

The network’s fee mechanism is also set to undergo an upgrade to Apricot phase three which will introduce C-Chain dynamic fees on Aug. 24.

— AVAX Daily (@AVAXDaily) August 16, 2021

The new integration will allow for the addition of a time-based, rolling window fee calculation, a capped fee range of 75–225 nAVAX and a block gas limit of 8 million gas.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Go to Source

Bit Coin

Bitcoin (BTC) Drops Below $60,000 But Correction Could Be Short-Lived

Published

on

Bitcoin (BTC) Drops Below $60,000 But Correction Could Be Short-Lived

Bitcoin (BTC) is likely in the middle of a short-term correction that has taken it below $60,000. Following this correction, a rebound in price is likely. 

BTC decreased considerably on Oct 26 and created a bearish engulfing candlestick.  This is a type of bearish candlestick in which the entire upward movement from the previous day is negated with an equal or larger drop the next day.

The main support area is found between $52,400 and $53,350. This range is made up of a short (white) and a long-term (black) Fib retracement level and a horizontal support area. There is also a minor support level at $56,550, created by only the short-term Fib level. 

Technical indicators support the continuation of the decrease.

The MACD, which is created by short and long-term moving averages (MA) is falling. Currently, the MACD is still positive, indicating that the short-term trend is moving faster than the long-term trend. However, it’s decreasing, signaling that the MA is decelerating.

The RSI, which is a momentum indicator is also decreasing. It’s above 50, signaling that momentum is still bullish, but the decreasing RSI indicates that momentum is also losing strength.

BTC gets rejected

The six-hour chart shows that BTC is moving underneath a descending resistance line since the Oct 20 all-time high price. 

More recently, the line rejected the price on Oct 25 (red icon), initiating the current downward move. The rejection also coincided with the $63,650 resistance area.

As long as the descending line remains unbroken, the short-term trend is considered bearish.

Wave count

The short-term wave count shows that BTC is likely in an A-B-C correction, which is potentially contained inside a parallel channel. For a long-term wave count analysis, click here.

Currently, BTC is in the C wave, which is the final portion of the correction and after which a rebound in price is likely.

There is considerable support near $56,500 and a drop to those levels would give waves A:C an exact 1:1 ratio. Furthermore, it would coincide with the support line of the channel. In addition to this, the area coincides with the short-term Fib support outlined in the first section. 

For BeInCrypto’s previous Bitcoin (BTC) analysis, click here.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

Go to Source

Continue Reading

Bit Coin

Bitcoin drops $1K in five minutes in fresh dip below $60K

Published

on

Bitcoin drops $1K in five minutes in fresh dip below $60K

Ethereum slips below $4,000 as an anticipated correction suddenly takes hold of crypto markets.

3861 Total views

13 Total shares

Bitcoin drops K in five minutes in fresh dip below K

Bitcoin (BTC) fell sharply on Oct. 27 as $60,000 finally gave way to two-week lows.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Bitcoin bites into major buy wal

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD nearing $58,000 at the time of writing, hitting its lowest since Oct. 15.

The move follows multiple retests of $60,000, with Bitcoin now taking liquidity in a large support wall with $57,000 as its base.

Analysts, as Cointelegraph reported, were already prepared, with some data suggesting a deeper dive to a low as $50,000 would still preserve the overall bull trend.

#Bitcoin couldn’t break through $63.6K and tests the other side of the range.

Might be dropping another time if $61.6K can’t break and then I’m looking at $58K next. pic.twitter.com/HIsvhE5ZlZ

— Michaël van de Poppe (@CryptoMichNL) October 27, 2021

Commenting on the situation meanwhile, Charles Edwards, CEO of investment firm Capriole, blamed leveraged traders for sparking the volatility.

“Basically Bitcoin looks incredible here on most metrics, but leverage traders have gone out of control,” he argued.

“We won’t get sustainable price rises until that changes.”

Data showed $500 million being liquidated in a single hour across cryptocurrency.

Altcoins lose big on trend reversal

Ether (ETH) led a bleed from altcoins Wednesday, falling below its hard-won $4,000 support line.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

Related: Expanding ecosystem and $1.86B futures open interest back Solana’s $250 target

Several of the top ten cryptocurrencies by market cap saw daily losses of over 15%, including Dogecoin (DOGE) and Solana (SOL).

Shiba Inu (SHIB) was still largely in the green, up 23% on the day despite the market turnaround and continuing a wild month.

Go to Source

Continue Reading

Bit Coin

Redditors cheer as GameStop assembles team of NFT experts

Published

on

Redditors cheer as GameStop assembles team of NFT experts

“Future creators won’t just build games but also the components, characters, and equipment. Blockchains will power the commerce underneath,” Gamestop’s Head of Web3 Gaming job listing reads.

2675 Total views

18 Total shares

Redditors cheer as GameStop assembles team of NFT experts

GameStop (GME) is assembling a team of blockchain and NFT experts to work on the firm’s upcoming NFT platform.

The firm’s GME stock is a cult favorite amongst retail traders as a result of the r/wallstreetbets and Robinhood saga earlier this year. On Reddit the r/Superstonk community boasts 659,000 members, and is dedicated to hosting business and stock discussions related to GME.

A post about GameStop’s job listings yesterday has received more than 10,000 upvotes at the time of writing, with many members posting bullish sentiments over GameStop’s latest move.

GameStop quietly unveiled a bare-bones website for its NFT marketplace in May. The site currently features a Nintendo Gameboy-style gaming console with an Ethereum logo, along with a message calling out for recruits to work on the platform.

Since then the firm has held its cards close to its chest, however on Oct. 25 it listed a total of eight jobs for crypto-friendly candidates, including three roles for NFT experienced software engineers, three jobs for product marketers and with two roles focused on Web3 based gaming.

One of the listings for the Head of Web3 Gaming job says that GameStop is looking for someone with experience with “Ethereum, NFTs and blockchain-based gaming platforms.” The firm has also hinted that there are some plans related to the Metaverse in the works.

“GameStop is looking for a unique individual who can help accelerate the future of gaming and commerce. In this future, games are the places to go, and play is driven by the things you bring. Future creators won’t just build games but also the components, characters, and equipment. Blockchains will power the commerce underneath,” the job listing reads.

Web3, billions in revenue, NFTs, Ethereum Layer 2. probably nothing. $GME pic.twitter.com/s3PiaqtWQl

— Chris SilvΞstro (@vestro) October 26, 2021

Related: Reddit may be preparing to launch its own NFT platform

Members of the r/Superstonk community were singing the firm’s praises yesterday, with “Triaspia2” calling it one of the “best job listings” they had seen, while pledging to buy more GME as it was a “bullish signal.”

Redditor “Donnybiceps” was equally bullish, noting that:

“NFTs are the future and people who haven’t gotten on board the GME train while knowing all these clues then you should be blaming yourself for not thinking this through.”

GME has had a volatile performance in October, going as low as $166 before bouncing to around $187 and subsequently crashing down again. However, according to data from Tradingview, the price of GME has still gained 2.8% this month to sit at $178 at the time of writing. The year-to-date gain for GME is a whopping 844%.

Go to Source

Continue Reading
Home | Latest News | Cryptocurrency | Bit Coin | 3 reasons why Avalanche (AVAX) price is up 200% this month

Market

Trending