The AVAX cryptocurrency of Avalanche has lost significant value, but still, its strong fundamentals by use of Defi and Dapps reflect bullish signs
The price of Avalanche (AVAX) is down by over 30% for this month, but despite this significant drop in a month, there is hardly any negative impression of cryptocurrency. All this is because of its scalability, cheap transaction fees, and huge presence in the decentralized finance space, making it the smart contract platform a top contender for decentralized applications.
The Avalanche network is compatible with EVM or ethereum virtual machines, and it’s unique in that it does not even face the similar situation of network congestion and huge transaction fees type operational bottlenecks. Avalanche has successfully managed to gather more than $9 billion in its total value locked (TVL) through a proof of stake offering of a layer one scaling solution.
TVL could be considered an extremely relevant factor in measuring the deposits on the smart contracts network. For example, the BNB chain has been running since September 2020, currently holding about $10.4 billion in TVL.
Despite the fact that the token price of AVAX has suffered a lot and the TVL is currently standing even behind some of its competitors, inventors still remain bullish on the basis of fundamentally positive developments occurring in the April month.
According to a Bloomberg report on April 14, the lead developer of Avalanche blockchain, Ava Labs, has raised about $350 million from its investors. After the deal, the company’s valuation reached upto $5.25 billion, and as per the DappRadar data, there are nearly 100 active applications that Avalanche holds that range from decentralized finance to nonfungible token marketplaces to gaming, etc.
Earlier this month, the organizations backing the algorithm stablecoin of Terra USD purchased a $200 million combined in AVAX for their strategic reserves of Terra USD. Co-founder of Terra, Do Kwon, called upon the solid ecosystem growth and wide user base of Avalanche. Even though getting the positive news, the price of the AVAX token remains about 53% below from it’s all-time high of $147, which is resulting in a market capitalization of about $18.4 billion. While comparing the market cap of Terra (LUNA), it stands at about $31 billion, and for Solana (SOL), it has about $33.3 billion in total value.
Source: https://www.thecoinrepublic.com/2022/04/30/despite-losing-30-value-how-does-avalanche-avax-have-room-for-bullishness/