The Avalanche price held steady on Wednesday as activity within its network rebounded. The AVAX price rose to $58, which was about 15% above the lowest level this week. This rally brought its total market capitalization to more than $12 billion, making it the 14th biggest cryptocurrency in the world.
Avalanche ecosystem growth
Avalanche is a fast-growing blockchain project that helps developers from around the world build blockchain projects. The network prides itself for its speed, eco-friendliness, and relatively lower costs than its peers.
For example, it has a throughput of about 4,500 transactions per second (tps), which is significantly faster than its peers. In contrast, Bitcoin has a tps of about 7 while Ethereum and Solana have tps of 14 and 2,000. At the same time, Avalanche is built using a proof-of-stake technology while Ethereum is built on a proof-of-work technology.
Avalanche was released in September 2020. This was just a few months after the developers raised $42 million in a token sale. AVAX is the native token for the ecosystem.
Today, data compiled by DeFi Llama show that Avalanche is one of the biggest DeFi development networks. Already, there are 47 DeFi platforms built on its network with a total value locked of more than $6.43 billion.
This makes it the fifth-biggest platform after Ethereum, Binance, Solana, and Terra. Indeed, some of the biggest DeFi platforms like Aave and Curve have created multi chains on Avalanche. Other popular DeFi platforms in its network are Trader Joe, Benqi, and Pangolin. The Avalanche price is rising today because its DeFi platforms have grown their TVL by more than 12% in the past 24 hours.
The ecosystem will soon see more growth. Besides, Avalanche has launched Avalanche Rush, a $120 million incentive program. Another key catalyst is the NFT business. This week, Jason M Peterson announced that he will launch an NFT of Kanye West on Avalanche.
Avalanche price prediction
The four-hour chart shows that the Avalanche price has made a strong recovery in the past few days. The token has jumped to $58, which is along the upper side of the descending channel. It has also moved slightly above the 50% Fibonacci retracement level.
It is also attempting to move above the 25-day and 50-day moving averages. Therefore, a bullish breakout will be confirmed if the price moves above the upper side of this channel. Still, there is a likelihood that it will retreat and retest the lower side of the channel.
In my AVAX price prediction last week, I warned that the coin was on track to drop to $50, which happened.
