What's the Secret to Avalanche's (AVAX) Success?

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3 years ago

Avalanche (AVAX) has achieved a really good momentum, especially in 2 months. Its value, which was only $ 10 at the end of July 2021, reached an all-time high of $ 79 when the dates showed September 23, 2021.

Of course, there are several reasons behind Avalanche's success. Nevertheless, it is admirable that it has experienced such a rise in such a short time. A similar rise has been experienced in Solana a short time ago, and these two projects are a very good example of how much opportunities this market has.

AVAX, which last saw $ 60 levels in February, lost prestige after a blockage in its network and fell to $ 22 levels. Knowing how to recover afterward, AVAX, even though it saw terar44 dollars, this time it was withdrawn to 9 dollars with the effect of the sharp fall in the market on May 19th. Afterwards, AVAX, which has been very successful in the development of its network, achieved a really good momentum and reached the $ 80 limit.

This success of AVAX, which recovered in a short time and made good progress, attracted the attention of the market and was highly appreciated.

So, what was the secret of this success of AVAX?

It is not possible to attribute the secret of AVAX's success to a single development. This success came mostly from the combination of several components. One of these components is the partnership agreements that the Avalanche network has made with many platforms. In addition, the fundraising efforts and the correct use of the collected funds played an important role in the development of Avalanche.

Partnerships Established by Avalanche

Launched at the end of September 2020, Avalanche has been very enthusiastic about partnering with many crypto projects in recent months. Perhaps the most striking of these projects was Aave, the shining star of DeFi.

In the event that this agreement, which is still at the voting stage, is realized, Aave investments on the Ethereum network will be transferred to the Avalanche network. This means that there will be a large amount of locked investment on the Avalanche network.

Aave and Avalanche are planning a liquidity mining worth $3 million with BENQI, a liquidity market protocol that also runs on the Avalanche network, aimed at growing in the decentralized financial market.

Apart from that, Alpha Finance has announced that it will release version 2 of the Homora network on the Avalanche network.

Another development in partnerships was the integration of OpenOcean, which is both a DeFi and CeFi aggregator, with the Avalanche network to increase the liquidity in its network.

Donation of 230 Million Dollars

Avalanche's success was influenced by the $230 million investment round. Cryptocurrency funds Polychain and Three Arrows Capital were included in this investment round.

It was announced that this event will support the growth of decentralized finance projects, corporate projects and other projects running on the Avalanche network.

Although Avalanche held this fundraiser event in the summer of 2021, it did not make the announcement immediately, taking into account market volatility. Thanks to the announcement made at the right time, it can be said that AVAX has reached the level of $ 80.

Record Breaking TVL Figures

The total value (TVL) locked in the Avalanche network has increased considerably in recent months, especially with the implementation of Curve Finance and the DeFi incentive project supported by Avalanche Rush and Aave.

When this project was announced in August, the current TVL on the Avalanche network was $250 million. Afterwards, the amount of TVL in the network reached $3 billion before the massive market-wide decline. Moreover, it was announced by AvaLabs, a supporter of Avalanche, that these figures were only achieved with an incentive of 5 million dollars.

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