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How can Avalanche triple in one month?

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Avalanche (AVAX) has exploded, which is reminiscent of the early BSC and MATIC.

What's the logic behind AVAX's Tripling in Value in one month?

AviFelman, BlockTower Co-Portfolio Manager

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In the last few days, we've seen TVL on Avalanche hit a turning point, locking in a value that doubled overnight and tripled in 10 days. When MATIC went from $200 million TVL to $400 million overnight, it was April 14, and a month later MATIC was up fivefold.

The main problem with AVAX in the past has been the lack of cross-chain Bridges. However, on July 29, Avax introduced a new bridge that allows easy migration of assets, and TVL has increased from $50 million to $250 million in the last five days alone.

As Avalanche foundation rolls out a massive liquidity plan ($1.8 billion) and announces that CRV and SUSHI are moving... Attracted a large part of the TVL. In addition, there was the launch of Benqi, the first loan agreement on Avax, which received a large number of TVL within days of its launch thanks to generous incentives.

From a technical point of view, AVAX already has an equivalent EIP1559 policy, which sets it apart from other public chains such as MATIC and BSC. With the introduction of a flywheel effect as activity increases, AVAX is constrained by a supply cap, which means it will become a deflationary asset in the long run.

A recent proposal (Apricot Phase 3), which will go live within four days, will make it the first public chain to adapt to the new 1559 EVM standard, in addition to cutting costs by more than 50%. These changes will also make it easier to launch new cross-chain projects.

Given the infrastructure and strong technical talent behind AVAX, we expect it to continue to be more reliable than current EVM implementations and more convenient for people who are used to using EVM based.

A key fundamental decision was to allow multiple subchains, which should allow AVAX to easily integrate with any virtual machine or smart contract language. This should be AVAX's long-term sustainable competitive advantage by easily grabbing different developers.

One of the remaining issues with the AVAX ecosystem is the lack of stablecoins on the platform, but we expect this to change dramatically once Curve is launched, and given the incentives, AVAX may be the best place for stablecoin mining, which could provide a second wave of growth for TVL.

At present, some ecological projects are small but growing rapidly. Pangolin is the main DEX, TVL and trading volume has been growing substantially. Trader Joe is the auxiliary AMM on AVAX, similar to the dynamic relationship between UNI and SUSHI, and Benqi is the new lending protocol...

All in all, the combination of the next MATIC/BSC frenetic temperament and strong long-term fundamentals makes AVAX the most attractive place to bet on the new public chain track.