3 Reasons Why Avalanche (AVAX) Price is Soaring

Published November 24th, 2021 - 07:00 GMT
3 Reasons Why Avalanche (AVAX) Price is Soaring
Entering the fray as the tenth cryptocurrency by market capitalization, AVAX aims to unseat Ethereum. (Shutterstock)
Highlights
Here are 3 reasons why analysts believe so.

If you've checked the crypto prices lately, you'll notice that despite the bloodbath that the crypto markets witnessed last week, a coin named Avalanche (AVAX) went through a rapid increase in value rallying 205%.

Avalanche, which is an open, programmable smart contracts platform for decentralized applications, is living up to its hype dubbed ‘Ethereum killer’ going wildly popular among traders as the excitement over new partnerships is yet another encouraging reason for investing in the coin. 

As we head into the holidays with BTC seems to be unable to recover past $60K and Ether is losing its grip on the gains, it is expected that the price of AVAX will continue to rise steadily, here are 3 reasons why analysts believe so.

1. New Partnerships with AVAX

The price of the Ethereum rival has conquered new highs propelled by the announcement of the forthcoming partnership with Deloitte to build a disaster recovery platform dubbed "Close as You Go" service atop the Avalanche blockchain.

AVAX

Hit by FOMO (Fear of Missing Out) investors as well as traders hurried to get a piece of AVAX that will be used in the platform, thus the boost is attributed to the rapid growth of users.

According to the press release, the Close as You Go service simplifies disaster reimbursement applications for victims of natural disasters, by aggregating and validating the documentation required for funding.

2.  Rollout of the Avalanche Bridge 

Currently ranked #11 by market cap with a live market cap of $28,983,800,219 USD, AVAX recently launched a bridge that connects it with the Ethereum network which targets migrating of projects in full compatibility with Ethereum assets, apps, and tools with faster speeds.

Believing that the interoperability of blockchains is the future, the Avalanche Bridge (AB) enables easy transfers of Avalanche and Ethereum assets between blockchains.

3. Lower Transactions Fees, Faster Network

Entering the fray as the tenth cryptocurrency by market capitalization, AVAX aims to unseat Ethereum as it was buoyed by congestion and soaring transaction fees on Ethereum’s network. Emin Gun Sirer, founder and CEO of Ava Labs stated:

At the time of writing, the average transaction fee on Ethereum's network rose almost 1544.37% since last year reaching $38.10, meanwhile, AVAX has a fee of only $0.095. Also, deploying smart contracts on Avalanche cost just a tenth of what they cost on Ethereum.


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