Market Analysis Report (26 Aug 2021)

The price of Avalanche (AVAX) has exploded after its decentralized finance (DeFi) sector saw popular decentralized exchange SushiSwap enter its $180 million incentive program, Avalanche Rush, which had already attracted lending protocol Aave and automated market maker Curve.

Moreover BENQI, an algorithmic liquidity market protocol on Avalanche, hit $1 billion in total value locked days after launch, showing how high demand is on the platform. The price of AVAX exploded from around $11 a month ago to now trade over $50.

What is Avalanche (AVAX)?

Avalanche is an open-source blockchain for launching decentralized finance applications and deploying enterprise blockchains in an interoperable and highly scalable ecosystem. It allows anyone to launch or trade any form of asset and control it using smart contracts.

Avalanche’s mainnet was launched in September 2020 and developers claim it can process over 4,500 transactions per second while offering transaction finality in under one second. Its transaction throughput makes it stand out among other blockchains, while it offers security thresholds well above the 51% standard.

The cryptocurrency uses Snowball, a Proof-of-Stake (PoS) consensus algorithm designed by Ava Labs that requires users to stake AVAX to become transaction validators, or to delegate their tokens to validators to participate.

Source: https://www.cryptocompare.com/email-updates/daily/2021/aug/26/