Avalanche (AVAX) Headed for $75, DeFi and Daily Transaction Figures Paint a Positive Picture

Crypto assets took a slight dive during Thursday’s early trading session as the market subsided. Avalanche’s AVAX let up some of its gains, falling below the $70 price level. The market has since pulled a turn and many coins are forging ahead including AVAX which is up 2.55% on the day.

While AVAX/USD appears to have had a slow start in the crypto market today, the chain is doing much better in the decentralized finance space. Avalanche climbed to fourth place yesterday and is now putting some distance between it and fifth place Fantom.

More on AVAX’s price action and events around Avalanche below:

Avalanche’s transaction volume is closing in on Ethereum’s

A fleet of altcoin ecosystems have emerged in recent days to solve the troubles Ethereum presents – high gas fees and unimpressive transaction speeds. One such ecosystem is Avalanche. According to current on-chain data, Avalanche has been closing in on the largest DeFi chain in transaction count. While it is yet to flip Ethereum for market share or volume, it appears to be on the right path.

Last Friday, founder and CEO of Ava Labs Emin Gun Sier noted that the Avalanche blockchain had processed 1.1 million transactions on January 27^th, which reflected 96% worth of Ethereum’s volume. This is a record high relative percentage for volumes processed on the two chains on any day. He added that the two chains showed a stark contrast in average fees – an Ethereum swap cost $62, while a swap’s fee on Avalanche was a meagre $0.23.

The fee is actually an essential argument point for Avalanche. The platform can attract projects seeking to build EVM-compatible products and still whet the appetite of fee-conscious users thanks to its significantly lower fees. Most recently, on February 2^nd, Avalanche recorded 920,330 transactions compared to Ethereum’s 1,152,665.

To have a shot at flipping Ethereum, Avalanche needs to be consistent as this has been the biggest kink for other options like Fantom. The latter put a show last week and even eclipsed Ethereum in daily transactions at one point but has since fallen off.

Avalanche reclaims fourth place among chains with highest TVL

Fantom’s waning momentum saw it fall to fifth place yesterday, less than two weeks after surging up to third place behind Ethereum. Data from DeFi Llama shows that Avalanche is now the fourth-ranked blockchain in Total Value Locked. The smart contract platform has $9.23 billion in TVL, up 0.56% in the last 24 hours.

The TVL chart shows that its TVL has swelled over 13% over the past seven days. Avalanche’s market share has seen a slight bulge to 4.57%, behind Binance Smart Chain and Terra with 5.94% and 6.78%, respectively.

Sigmadex aims for sustainable growth with a rollout on Avalanche

Avalanche has recently welcomed a new member to the ecosystem as decentralized exchange Sigmadex announced it would be doing an initial rollout on the blockchain. Sigmadex said that following the launch, it aims to evolve into an inter-chain liquidity protocol that uses Avalanche subnets to bridge to other chains.

The decentralized platform justified its choice of Avalanche, stating that it offers an entirely EVM-compatible environment that might require only minor changes. It also noted that Avalanche’s minimal fees, decentralization, and scaling potential were swing factors in the decision. The scaling is more so important as the decentralized exchange aims to expand (as per the roadmap) to become tomorrow’s number one liquidity protocol.

Sigmadex also alluded to research that shows users choose cost and time saving as the most desirable attributes over any other. The cross-chain and multi-asset marketplace noted that with Avalanche offering high speeds (5 seconds faster than any rival) and boasting significantly lower costs, it was a prime choice.

These would be suitable conditions to allow traders on Sigmadex leverage even those trades with low capital involved. Further, Sigmadex has planned gifts for all users who held AVAX at the turn of the year, with new members eligible as they join the chain.

Avalanche (AVAX) market performance

AVAX /USD is trading at $70.25, but a break to higher grounds is imminent going by its trajectory in the last few hours. The market sentiment appears to favor an upswing as well, but bulls will likely face a hard time completing a move above $74.50 where the token was previously rejected.

Earlier this week, popular crypto analyst Michaël van de Poppe shared on Twitter that AVAX could be set for a rally if it manages to overcome a critical resistance zone. The crypto strategist pointed to $80 as the price level that Avalanche’s token needs to overset for a potential run. Van de Poppe also suggested that accumulating more AVAX before then would be a good move.

To learn more about this token visit our Investing in Avalanche guide.