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Avalanche has been on a notable bullish rally over the past few weeks. The network has made bullish gains that come from the increased adoption of the network by decentralized finance (DeFi) protocols.
However, despite the crypto community’s increased interest in this token and network, it has not been spared from the volatility happening across the broader cryptocurrency market.
Avalanche attempting a breakout
The broader cryptocurrency market has been rescinding, but this has not affected AVAX significantly, as has been recorded with other tokens. AVAX is currently around 37.6% below its record high of around $144 recorded in late November.
If AVAX makes a bullish rally at this point, it could mainly be attributed to buyer support and recovery of prices across the broader cryptocurrency market. Thus, it could push towards the next major resistance at $95. This could set the next target for the prices at $100.
Currently, data from CoinGecko shows that AVAX has dipped by around 0.7%. This is lower than what has been recorded in the market. Therefore, market recovery is a guarantee that AVAX will be headed towards major gains.
On the other hand, dips are also possible if there is a market-wide selloff. In this case, AVAX could push towards the next major support level at $85. Further dips could also push the prices towards $80, but such lows could trigger buys from traders that want to book profits.
Avalanche’s TVL makes gains
The AVAX tokens is not the only one making gains, given that the total value locked (TVL) on the network has also recorded some gains. Avalanche ranks as the fourth-largest smart contract platform with a TVL of $11.4 billion.
This TVL is greater than Avalanche’s greatest competitors, including Solana. The only networks above Avalanche by TVL are Ethereum, Terra and Binance Smart Chain. The growth in TVL comes amidst increased adoption of the network by developers. DeFi Llama shows that the dominance of Avalanche in the DeFi space currently stands at around 24.44%, which is a major growth over the past year.
Avalanche has been gaining adoption from developers that want to build DeFi projects on top of the network. The network continues to attract interest from these developers because it charges low fees and offers higher speeds. Because of these attributes, Avalanche has been ranked among the projects that can surpass Ethereum in terms of TVL.
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