Avalanche is an innovative crypto with a clear purpose, while meme coins, as their name suggests, have no purpose. Developed by the Ava Labs team at Cornell University, the avalanche blockchain is set to launch in September 2020. The team is now based in Brooklyn, New York. Ethereum is the most widely used blockchain network. Its network is secure because it records transactions and makes sure that no one group or individual can control information.
Although the aforementioned cryptocurrencies are wildly successful, many investors believe that an avalanche could unseat Ethereum in the near future. While Ethereum has dominated the smart contracts space for years, new chains have been capturing market share and growing in popularity. These newer chains are betting on a multi-chain world while Ethereum 2.0 is likely to lead to a single-chain world.
The decentralized web has become a trillion-dollar industry, with platforms for digital art, financial products, and e-commerce. While Ethereum is currently the clear leader, rivals like Avalanche have begun gaining ground. Ethereum has the most applications and users, while rivals like Avalanche have yet to reach that point. The combined market value of this ecosystem is more than US$475 billion.
An avalanche of investor dollars may overcome the inevitable failure of ICO-d companies. As a 24/7 market, an influx of investor dollars could potentially offset any ICO-related failures. However, the price may level off when the optimistic press stops pumping in. The price of ethereum has skyrocketed in recent months, but it may be leveling off because of ICOs.
The market cap of the avalanche coin is anywhere from $6 billion to $27 billion. Its uses include advanced DeFi activities, such as staking, lending, pooling, and trading. Its features have attracted investors, including the ability to perform advanced transactions in real-time. These features are also crucial in the booming crypto market. While the market cap is a huge factor in its price movement, Avalanche is a great way to invest in cryptocurrencies without the risk of large losses.
The rising TVL, meanwhile, is another factor that supports the avalanche price. While the price of ethereum may fall further, the reduction in supply is good for the network. However, long-term investors should be wary. However, the price of ethereum remains in the red zone. Last week, the price of ethereum surged by 19% and has subsequently dipped to $3251. However, analysts still see a $5,000 price for ethereum in the near future.
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The price dip narrative has been gaining ground since the start of 2017. The avalanche market is heavily favored, and the long-liquidations outnumber the short-liquidations. The long-liquidations have incurred more losses than their short counterparts. The funding rate on most exchanges was as low as -0.03%, indicating a collective bearish sentiment. However, investors must keep in mind that the avalanche market may still experience fundamental pushbacks.