The cryptocurrency landscape witnessed a striking anomaly this week as Avalanche (AVAX) soared by a 79%, defying the overall market downturn that saw leading tokens like Bitcoin and Ether take a 6% hit. This surge is attributed to AVAX’s perceived undervaluation and its recent high-profile partnerships with financial giants JPMorgan and Citi.
Ryan Mcmillin, from Merkle Tree Capital, highlighted the burgeoning enthusiasm for Avalanche, linking it to the token’s increased daily transactions, which leapt from approximately $200,000 to a staggering $4.5 million. Furthermore, the network’s total value locked (TVL) swelled by 82% over the past quarter, showcasing a robust growth trajectory.
Henrik Andersson of Apollo Crypto also weighed in, noting that AVAX had previously been overshadowed in market valuation despite having a higher TVL than rivals like Solana. “We do believe we will enter a market in 2024 where some of the altcoins will perform better than Bitcoin,” Andersson stated, pointing to a potential shift in the crypto market dynamics.
CoinShares’ research head, James Butterfill, underscored the trend, observing that while the market grappled with volatility, Avalanche, along with Solana, managed to draw in $2 million in inflows, maintaining their status as “firm favorites” among alternative cryptocurrencies.
