- Avalanche price has crashed by 20% from its highest level last week.
- The decline is because of the geopolitical and monetary policy risks.
- Avalanche is now the fourth biggest smart contract network in the world.
The Avalanche price has declined sharply in the past few days as geopolitical and monetary policy risks jump. AVAX, its native token is trading at $77.25, which is almost 20% below its highest level this month. The price is at the lowest point it has been since February 6th.
Avalanche climbs the smart contracts ladder
Avalanche is a large smart contract platform that helps developers to build quality decentralized applications in all industries.
The network’s goal is to become a faster alternative to Ethereum and Binance Smart Chain (BSC). Indeed, metrics show that the network has stronger speeds than Ethereum. It can handle more than 4,000 transactions per second (TPS).
The cost of transactions is also significantly lower than other coins. A typical transaction is usually less than 2 cents.
As a result, the number of applications built using Avalanche’s technology is growing at a faster pace. According to DeFi Llama, there are now about 165 apps in the Avalanche ecosystem. These apps have a total value locked (TVL) of more than $10.5 billion.
This makes it the fourth-biggest platform in the world after Ethereum, Terra, and Binance Smart Chain. Some of the biggest applications built using Avalanche are Aave, Trader Joe, Benqi, Wonderland, and Beefy Finance among others.
The Avalanche ecosystem will likely keep growing in the coming months thanks to the Avalanche Rush program. In it, the developers are giving out over $150 million to developers building in the ecosystem.
One of the most recent platforms to come to the Avalanche network is GMX, a platform that provides liquidity pools. The developers also launched UST to the Avalanche ecosystem.
Still, while the network is showing some growth, there are external factors that are affecting the Avalanche price. For example, there are geopolitical risks about Ukraine and the fear of high-interest rates from the United States.
Avalanche price prediction
The four-hour chart shows that the AVAX price has been in a strong bearish sell-off in the past few days. Along the way, the coin has managed to move below the lower side of the ascending channel shown in red. It has also moved below the 25-day and 50-day moving averages while the MACD and the Relative Strength Index (RSI) have tilted lower.
Therefore, there is a likelihood that the Avalanche price will keep falling as bears target the next key support at $65. On the flip side, a move above the key resistance at $85 will invalidate this view.
