thecoinrepublic.com
The adoption rate of Avalanche (AVAX) has increased by 23.5%, leading to speculation about a potential increase in its price. According to a post from IntoTheBlock, many new users actively participated in transactions for the first time. This trend underscores newcomers’ role in the overall network activity.
Avalanche gained attention due to recent updates to its ecosystem, strategic partnerships, and increasing interest in its new solutions. The speculation is whether this growth can boost AVAX’s price recovery.
Key Reasons Behind AVAX Price Surge
Recently, Avalanche partnered with Visa, a multinational payment company, to launch a crypto-based payment card. This collaboration allows users to spend their AVAX tokens in real-world transactions, making the cryptocurrency more useful. The partnership will also help connect traditional finance with digital currencies and enable Avalanche to gain wider acceptance.
The Visa partnership is important for AVAX because it shows that big financial companies are interested in the protocol. It helps build trust in the system, making individual and institutional investors to lend their support.
Similarly, Franklin Templeton, one of the largest global investment managers, launched its OnChain U.S. Government Money Fund on Avalanche. The collaboration means the blockchain has gained traction within the DeFi and tokenization sphere. Through 2024, the total value locked (TVL) of Avalanche remains more or less constant at $1.387 billion.
At a current market capitalization of $11 billion, the network still holds significant grounding in the broader crypto market. Meanwhile, Franklin Templeton’s decision to join Avalanche will also increase the network recognition and the inflow from related institutional investors.
The Avalanche Trust Product
In addition to these offerings, Grayscale Investments launched the Avalanche Trust to enable investors to gain exposure to AVAX. These offerings have positioned Avalanche as a strong contender for future growth.
Avalanche’s Subnet technology enables developers to create customized blockchains for specific applications. This has also made the protocol a popular platform for Decentralized Applications (dApps) and DeFi projects. Its flexibility gives it an advantage over other blockchains like Ethereum (ETH), which often face issues with high gas fees.
Impact on Avalanche: Will AVAX Price Rally?
While the adoption rate is increasing, the price of AVAX is yet to follow suit. However, many analysts believe a price rebound could be imminent, as rising adoption often precedes price action.
A few hours ago, the AVAX price broke out of a multi-month falling wedge pattern. This suggests that there could be a big increase in price coming up. Analysts think AVAX could go as high as $130 over the next 3-6 months. The breakout happened because there are many positive fundamentals about the platform at the moment.
The overall positive market sentiment has pushed the coin upward by 160% over the past year. At the time of writing, the price of AVAX was $26.18, down by 4%. Based on current projections, the coin’s average price might come close to the upside forecasted level at $39.46, implying a potential growth of 63.56% from the present levels.
The general market sentiment might also help the coin’s big breakout in the long run. This is because most coins are flashing oversell signals, with a potential bullish reversal ahead.