Avalanche is a relatively young player in the DeFi space. But its rapid rise has made it a tough competitor. Now, after going against broader market trends, it is solidifying itself to become a top-notch asset.
Avalanche against Bitcoin
Of all the major assets in the crypto market, avalanches are one of the few that could remain positive during the bear market. AVAX managed to bring all the green candles by itself, while all the other cryptocurrencies marched on the red candles. At least for a while.
From November to December, altcoin continued to rise. For starters, it recovered 109% in November before fixing 41.46% in the fall after December. In fact, at the beginning of 2022, we saw the longest-term price decline of tokens.
In particular, altcoin fell 26.45% and traded at $ 84 at the time of the press.
AVAX price action | Source: TradingView – AMB Crypto
The correlation between AVAX and Bitcoin, while avalanche is easy, may be the main reason against the broader market trends. At the time of writing, Avalanche had a negative 0.4 correlation with Kingcoin, unlike other crypto assets that share a positive correlation.
THis reading helped push cryptography towards its ATH of $ 134.
Correlation between avalanche and Bitcoin | Source: MacroAxis
In addition, this correlation with BTC makes Avalanche a much more attractive and profitable network for investors and developers. Interestingly, this may be the reason why the number of DApps built on Avalanche has increased.
Most recently, the renowned DEX Trader Joe’s has released a roadmap for expanding the avalanche ecosystem. It is worth noting here that the platform aims to become a hub for DeFi innovation and become an ambassador for NFTs and the Metaverse.
In addition, Bitwise ranked Avalanche 5th in the 10 Large Cap Cryptographic Index after the restructuring at the end of December. Before the avalanche, there are only Bitcoin, Ethereum, Solana and Cardano.
Avalanche enters 10 large cap crypto index | Source: Bitwise
In addition, on January 6, Unifarm, one of the largest decentralized agricultural pools, was launched in an avalanche. Therefore, DApp will be one of the only four chains extended after Ethereum, Polygon, and BSC.
Avalanche may not have as strong a social presence as its competitors, but network adoption speaks for itself. If this continues, AVAX may find the rally sooner rather than later.
Social existence of avalanche | Source: Santiment – AMB Crypto
