AVAX price soared to a record high as heavy inflows enter the protocol via its cross-chain bridge and institutional investors pledge $230 million in funding for the swiftly increasing Avalanche ecosystem.
On Thursday Avalanche’s (AVAX) price hit a new all-time high at $68.89, and over the last few months, the project has risen to challenge the Ethereum network’s dominance amongst smart contract platforms. According to the project’s website, the layer-one protocol is capable of surpassing 4,500 transactions per 2nd (TPS) with a time to finality of less than two seconds.
Data from Cointelegraph Markets Pro and TradingView suggests that since hitting a low of $32.10 on Sept. 7, the price of AVAX has rallied 111% to set up a new all-time high on S as its 24-hour trading quantity spiked 200% to $2.8 billion
Three motives for the surging fee of AVAX consist of the latest completion of a $230-million investment round by huge capital funds, the continued migration of liquidity to the Avalanche network, and new integrations and protocol upgrades that assist improve the customer experience.
Big funds back Avalanche
The leap in momentum seen in AVAX’s price on Thursday came following the announcement that a handful of large funds, which includes Polychain Capital, Three Arrows Capital and Dragonfly capital, took part in a $230-million funding round for the project.
This marks the largest investment into the Avalanche ecosystem to date and shows that large institutional players are beginning to take a keen interest in the Ethereum competitor.
The Avalanche community is cross-chain compatible with Ethereum, this means that any tokens or tasks that operate on Ethereum can completely migrate to the Avalanche ecosystem and take advantage of its higher thorough capabilities and decrease transaction costs.
With no definitive date on when Ethereum 2.0 will be completely operational or what its final competencies will be, networks like Avalanche now have an opportunity to make the case for why they are a better choice, which should lead to an increase in their market share.
Liquidity migration and rising TVL
A second cause for the building strength viewed in AVAX has been the contineous migration of assets from networks like Ethereum to Avalanche to participate in its developing decentralized finance (DeFi) ecosystem.
Evidence of the asset migration can be discovered in the total value locked (TVL) records supplied by Defi Llama, which indicates that the TVL on Avalanche has been climbing rapidly since Aug. 19 and reached a new record high of $2.17 billion on Thursday.
The push in TVL is generally due to the launch and growth of numerous successful DeFi protocols on Avalanche, along with Benqi (QI), Trader Joe (JOE) and Pangolin (PNG).
Related: Bull flag breakout pushes Avalanche toward $80 as AVAX price hits another record high
Partnerships and crypto-related integrations
A third element that has helped increase the value of AVAX has been a sequence of partnership and integration announcements that have excited investors and put the spotlight on the project.
The Avalanche nonfungible token (NFT) ecosystem has viewed an inflow of interest thanks to a partnership with the sports card and memorabilia company Topps, which launched its “Inception” NFT digital collectibles series on the network.
There is additionally a vote underway in the Aave community, one of the top DeFi protocols in the cryptocurrency ecosystem, to see if traders prefer to see Aave launch on the Avalanche network. A vote of approval may lead to a further increase in TVL on Avalanche, as assets held in Aave on Ethereum have the potential to be migrated to Aave on Avalanche.
“If you are part of the $AAVE community and would like to see Aave deployed on #Avalanche, please put your vote in now: https://t.co/Bx4jbUq6mO”
— Avalanche (@avalancheavax) September 15, 2021
According to statistics from Cointelegraph Markets Pro, market stipulations for AVAX have been favorable for some time.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and modern market prerequisites derived from a combination of data points such as market sentiment, trading volume, current price movements and Twitter activity.
As viewed in the chart above, the VORTECS™ Score for AVAX spiked into the green and reached a high of 86 on Monda, around 24 hours before the price increased 40% over the next two days.
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