Avalanche (AVAX) price prediction as DeFi TVL zooms to $2.6 billion
The Avalanche (AVAX) price is hovering close to its all-time high as investors reflected on the new investment in the platform. The AVAX token is trading at $62.87, which is slightly below its all-time high level of $69. This brings its total market value to more than $14 billion.
Avalanche ecosystem growth
Avalanche is a blockchain project that is disrupting the dApps industry. It has become one of the biggest Ethereum-killers in the world. Indeed, at a $14 billion valuation, the AVAX token is the 13th biggest crypto platform in the world.
This trend could accelerate after the latest funding in the ecosystem. In a statement, the Avalanche Foundation said that it had received $230 million from a group of investors led by Three Arrows Capital and Polychain. Polychain has also invested in Solana, another Ethereum-killer.
The foundation will use these funds for various purposes, including product development and grants. In the past few months, many blockchain projects have announced large grants to incentivise developers to use their platforms.
The announcement came at a time when Avalanche’s DeFi platform has grown rapidly. Data compiled by DeFi Llama shows that Avalanche has about 29 DeFi projects within its ecosystem. These projects have grown their Total Value Locked (TVL) to more than $2.6 billion, which is remarkable considering that they had a TVL of less than $50 million when the year started.
Avalanche is the third-biggest DeFi platform in terms of the number of projects after Ethereum and Binance. At the same time, it is the sixth in terms of TVL after Ethereum, Binance, Solana, Terra, and Polygon. The biggest Avalanche’s DeFi platforms are Benqi, Trader Joe, Pangolin, and Yield Yak.
Still, Avalanche faces a tough challenge in its battle against Ethereum, which is the biggest platform in the world. While it has reliability, scalability, and cost issues, Ethereum has hundreds of DeFi projects and a TVL of more than $123 billion.
Avalanche price prediction
The four-hour chart shows that the AVAX price has been in a strong bullish trend lately. Its price has risen by almost 600% from its lowest level in July this year. This week, the token managed to move above the key resistance level at $60, which was the previous all-time high.
The coin’s bullish trend is being supported by the 25-day and 50-day moving averages (MA) while the total volume remains at elevated level. Therefore, the Avalanche price will remain in an ascending trend so long as it is above the two moving averages.