Avalanche (AVAX) has emerged as a frontrunner in the cryptocurrency race, outperforming Bitcoin with an extraordinary 200%+ yearly return, according to data from IntoTheBlock. While Bitcoin has been leading the market charge this year, AVAX has not only held its ground but has surpassed expectations.
Despite the recent downturn in the broader crypto market, AVAX has demonstrated resilience, clocking in a remarkable 39% weekly gain while others faced declines. The monthly chart paints an even more impressive picture, with AVAX boasting a staggering 94.36% increase. This bullish momentum comes at a time when the cryptocurrency markets are facing bearish pressures.
JPMorgan Chase & CitiBank Join Forces with Avalanche
Analyzing on-chain data provides insights into the factors driving AVAX’s surge. The past month has seen a strategic focus on two key narratives by Avalanche – real-world assets (RWAs) and GameFi, signaling a forward-looking approach ahead of 2024. Notably, the Avalanche Foundation’s recent collaborations with traditional financial giants such as JPMorgan Chase and CitiBank have propelled the cryptocurrency into the spotlight.
These strategic partnerships aim to leverage Avalanche and its blockchain subnets for the development of real-world asset (RWA) projects. Additionally, the Avalanche Foundation has unveiled the Avalanche Vista fund, a substantial $50 million commitment dedicated to RWA research and development.
Ryan McMillin, Chief Investment Officer at Merkle Tree Capital, believes that the excitement surrounding AVAX can be attributed to these strategic collaborations with financial heavyweights. JPMorgan and Citi partnering with the Avalanche Foundation for their RWA tokenization initiatives has sparked enthusiasm in the crypto community.
Mcmillin points out:
More recently, the strength of AVAX looks to be associated with a spike in daily transactions from around $200,000 to $4.5 million over the last couple of days. Daily active addresses have also seen a solid trend to the upside.
Moreover, Henrik Andersson, the Chief Investment Officer at Apollo Crypto, shed light on the undervaluation of AVAX by wider market standards. Andersson highlighted that a few weeks ago, Avalanche boasted a higher TVL than Solana, with only a quarter of the market cap.
Although TVL still remains higher, the market cap has now halved compared to Solana. Expressing optimism, Andersson predicted a market scenario in 2024 where certain altcoins, such as Immutable (IMX) and Synethix, could outperform Bitcoin.
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