What Avalanche (AVAX) investors need to know about this “very optimistic thing”
After Avalanche launched its mainnet around this time last year, it has slowly become one of the best-known names in smart contracts. At the same time, the price of the native AVAX token rose phenomenally.
As of August 2021, AVAX is the 47th largest cryptocurrency and has a market capitalization of just $ 2.2 billion. Over a month later, the accumulated capitalization is up to $ 13.13 billion and is among the top 20 crypto assets.
What drove the development forward?
Active development has always proven to be an advantage in the crypto space. Many projects can only keep their place in the room with regular updates and upgrades. Avalanche’s growth so far has been fairly constant despite the difficulties encountered in late August. Interestingly, at the time of writing, this metric is at the mid-May level.
AVAX Prize (green) and Development Activity (purple) | The source: mood
Several important developments in the ecosystem have triggered the upward momentum mentioned above. Launchpad of the Avalanche Ecosystem – AvaXlauncher is preparing for 2 upcoming IDO (Initial DEX Offering) notification Officially on September 13th Basically, IDO is carried out when the project starts the token via a decentralized exchange of liquidity. Just as the first start-up receives pre-launch venture capital, IDO issue projects are financed by individual investors.
In particular, the priority of the IDO depends on the amount used by AVXL users. AvaXlauncher’s native AVXL token was only listed a few days ago.
In the first 24 hours since AVXL was listed, the trading volume on PancakeSwap was $ 8.8 million, while the same number on MEXC was $ 7.1 million. With a list price of just $ 0.0022, the token then hit an ATH of $ 0.48 (220x higher) for MEXC and $ 1.11 (508x higher) for PancakeSwap.
The source: AvaXlauncher
If you have this token in your portfolio together with AVAX, you will therefore receive high returns in the coming months. Many people from the community are already very excited about SUSHI BOYZ tweets:
“Very optimistic for AVXL. 2 IDOs are planned for this month on Avalanche. Already listed at CMC and CG. Wait”.
In addition, the dominance of Avalanche in the room increases with each passing week. In the first few days of August, AVAX’s market capitalization fluctuated between 0.1% and 0.2%, while at the time of going to press it was up to 0.5%. The investment’s risk-adjusted return has also doubled since early August, and AVAX’s Sharpe ratio is 8.02 at the time of going to press.
Dominance of market capitalization | The source: Messari
The circulating supply is also increasing and hovering around the latest 2.2 million mark. This essentially means that more tokens are circulating in the market. Overall, the aforementioned increase was accompanied by an increase in trading volume, which underlines the real interest in the AVAX token.
AVAX price (green) and volume (red) | The source: mood
By offering an attractive short-term ROI for investors, both tokens can gain traction while being the main topic of discussion. If this continues, the network will find widespread acceptance and the avalanche ecosystem in the room will grow stronger.
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According to AMBCrypto