Avalanche AVAX Price Skyrockets Amidst Crypto Market Turmoil Trending Crypto News

Avalanche AVAX Price Skyrockets Amidst Crypto Market Turmoil
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Avalanche (AVAX) is the only top altcoin soaring while others plummet. However, most tokens are way up already in Q4, so the fall is relative.

Avalanche (AVAX) continues its impressive rally, skyrocketing 6.98% over the past 24 hours. This follows a remarkable 7-day performance, with the altcoin’s price soaring 59.63% from $22.3 to $35.5. Notably, Avalanche’s bullish momentum remains resilient despite a broader market correction that has plunged other top coins into the red.

CoinMarketCap data shows that Solana and Avalanche are the two ecosystems that have recorded a sharp increase in TVL over a month. Avalanche ranks 7th in Total Value Locked with $650 million and supports over 30 decentralized applications (dApps).

Avalanche Ecosystem in Spotlight

The growth of Avalanche can be attributed to its strategic focus on two key narratives: real-world assets (RWAs) and gaming.

According to a report by CoinDesk in November, major banks like Goldman Sachs and JPMorgan have shown increased interest in tokenization and real-world assets. Earlier this year, Bernstein, the private wealth management firm, predicted $3 trillion worth of RWAs will be tokenized in the next five years.

This explains the inflow growth into the Avalanche ecosystem. Avalanche is at the forefront to capture this market. A recent analysis by Unit Network indicated that Avalanche is actively targeting this narrative.

Avalanche recently announced partnerships with major financial institutions, including JPMorgan Chase and CitiBank. Both giants are leveraging Avalanche and its subnets to develop RWA solutions. Additionally, Avalanche Foundation has initiated Avalanche Vista, funded with $50 million for RWA research and development.

Apart from RWA, Avalanche has strategically positioned itself as the largest blockchain focused on the gaming sector.

With the global gaming market expected to reach a $1.4 trillion valuation by 2030, Avalanche’s subnet architecture is a key differentiator. This architecture enables game developers to create highly scalable and bespoke blockchains, attracting top gaming studios to build on the Avalanche blockchain.

Crypto and DeFi researcher Alex Wacy noted in a recent tweet that Avalanche’s alignment with trending narratives in gaming is a game-changer.

The analyst believes that Avalanche’s vision and key collaborations are the driving forces behind the surge in on-chain activity and the coin’s price. Further development of gaming on Avalanche promises ongoing growth of the ecosystem.

Launched in 2020, Avalanche is a prominent blockchain platform that aims to address the scalability and cost challenges faced by Ethereum, particularly within the DeFi space. By offering lower gas fees, Avalanche seeks to make DeFi more accessible to a wider range of users.

Market Volatility Ahead of Key Macro Events

While AVAX sees a major surge in price, other top coins are in the red. In the past few hours, Bitcoin dropped from $43,500 to $41,700, a sharp 7% decline that wiped out over $333 million in long positions.

Ethereum (ETH) witnessed a notable drop, slipping below the $2,300 mark and recording an 8.98% decrease within a 24-hour period.

Other major altcoins also succumbed to the market pressure: Solana (SOL) declined by 3.63%, Ripple (XRP) by 5.95%, Cardano (ADA) by 6.78%, Polkadot (DOT) by 6.7%, and Chainlink (LINK) by 8.1%, among others.

Market volatility surged in anticipation of two major economic events this week: the release of the November inflation report on December 12 and the Federal Open Market Committee (FOMC) meeting on December 13, which marked the final policy meeting of the year.

The Federal Reserve’s next move on interest rates remains shrouded in uncertainty, despite Chair Jerome Powell’s previous emphasis on still-high inflation and the agency’s contemplation of policy tightening. While some observers predict a rate hike, others anticipate cuts beginning in 2024.

While the road higher will not be smooth, the bottom for the latest crypto winter is likely in. Over the coming year most major crypto prices are likely to rise, and some may shoot much higher.

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