The Avalanche price bullish momentum has faded in the past few days. After rallying to an all-time high of $153 in November, AVAX is trading at $108. The recent decline has pushed its total market capitalization to $24.13, making it the 12th biggest cryptocurrency in the world. It was recently among the top ten cryptocurrencies.
AVAX review
Avalanche is a relatively new smart contracts platform. The network is similar to Ethereum in that it helps people to build decentralized autonomous organizations (DAOs). Examples of these DAOs are platforms like the metaverse, non-fungible tokens (NFT) and decentralized finance (DeFi).
In its short period of existence, Avalanche has become a leading player in the smart contracts industry. A good example of this is in the DeFi industry.
According to DeFi Llama, there are now about 78 DeFi projects in Avalanche’s ecosystem. These apps have a total value locked (TVL) of more than $13 billion, making it the fourth platform after Ethereum, Binance Smart Chain (BSc) and Solana.
The most recent entry into Avalanche’s ecosystem is DeFi Kingdoms, a leading platform built on the Harmony Blockchain. It has moved into Avalanche through what is known as a cross-chain expansion. It is a play to earn MMORPG that is built upon a strong DeFi protocol.
Other recent platforms that have moved to the network are Alpha Finance Lab, Tether Token (USDt), and Deloitte. And recently, Colony, an Avalanche ecosystem accelerator raised $18.5 million in seed funding. The company will provide financing to projects building on Avalanche’s network. Avalanche was also added to Nexo’s yield platform.
Developers love Avalanche because of its substantially fast processing speeds and reliability. For example, the network is able to process more than 4,500 transactions per second (tps). This is substantially higher than the speeds of Ethereum and Solana.
Avalanche price prediction
The daily chart shows that the AVAX price has been in a bullish trend in the past few months. The coin has jumped by more than 4,000% this year. This growth has helped to propel its ranking higher. Avalanche is also above the 25-day and 50-day moving average.
A closer look shows that the coin has moved above the important support level at $80, which was the previous all-time high in September.
Therefore, I see two main scenarios in the coming weeks. First, the coin will likely resume the bullish trend and move above the current all-time high. Second, it could do a retest pattern, where it moves to the support at $80 and then resumes the bullish trend. These two scenarios are bullish and there is a likelihood that it will soar to about $200.
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