What is making Avalanche’s AVAX price rise as majority of cryptocurrencies dip?
Avalanche’s AVAX price is rising at a time when its peers are on a week’s long dip. Avalanche made a sudden surge and hit a daily high of $90.05 before pulling back to around $87.77 at the time of writing.
AVAX is still trading in the green with a 1.67% gain in the last 24 hours.
So, what are the factors behind the current Avalanche price surge? This article delves into explaining the behind-the-scenes causing the price of AVAX to rise when a majority of coins including Bitcoin, and Ethereum are in the red.
Why is Avalanche price ricing?
The reason for today’s Avalanche price surge is Terra Luna Foundation’s announcement that it has added Avalanche (AVAX) to its UST Reserve. Terra went ahead and bought AVAX coins worth $100 million.
The move made Avalanche the second larger 1 solution digital asset to be added to the UST Reserve with the first being Bitcoin.
Terra Luna Foundation made the revelation through a Tweet stating:
2/ The @LFG_org’s OTC deal to add $100 million of $AVAX to the $UST Reserve makes AVAX the first major crypto-asset besides $BTC to be added to the UST Reserve, marking the beginning of a diversified and non-correlated asset pool supporting the $UST peg.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) April 7, 2022
Besides, adding Avalanche to its UST Reserve and buying AVAX coins, Terra has also partnered with Avalanche to develop a new gaming subnet using Avalanches subnets. Terra Luna Foundation bypassed Ethereum to choose Avalanche since they believe Avalanche is experiencing rapid growth and it has a wide fan base.
Don Kwon, who is the founder of Terra said:
“Avalanche is still a growing ecosystem…a lot of it is fueled by loyalty to the AVAX token and users feel a lot of affinity with an asset that aligns itself with AVAX. Whereas for the average Ethereum user, aligning yourself with Ether doesn’t really mean that much.”
The team at Terra Luna Foundation also went ahead and tweeted about Terra collaborating with Avalanche on the new gaming subnet stating that “Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.”
6/ In particular, Avalanche’s subnets are a powerful method for building the next generation of scalable Web3 applications within niche use cases.
As a result, Terra and Avalanche will be collaborating on a new gaming subnet – with details to be released at a later time.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) April 7, 2022
The above developments have brought the recent AVAX price drop to a halt and made it start rising; something most investors believe could be witnessed for at least the next few days if not weeks.
