Avalanche News
Avalanche (AVAX) Loses Support Above $75 Despite Bullish News Around Its Incentive Program
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Earlier this week, the Avalanche Foundation revealed it was committing 4 million AVAX tokens to foster “the adoption and growth of the novel ‘subnet' functionality.” The funding, which comes as smart contract platforms scramble to establish their position, however, hasn't impacted the price of AVAX as many hoped.
The token has, instead, moved in line with the general market trend. AVAX posted substantial gains yesterday but has since slumped along with other alts. Here are the details around the incentive program and more on AVAX price action.
Avalanche Foundation aims for growth of subnets with a $290 million incentive program
The non-profit organization behind Layer 1 blockchain network Avalanche on Tuesday announced the launch of Avalanche Multiverse, a $290 million (four million AVAX) incubator and incentive program to spur the growth of Subnets, with support for DeFi, NFT, and institutional use.
Avalanche described subnets as the next frontier of innovation to provide better functionality and scalability to support app-specific blockchains to cope with the increasing user demand. The implementation of subnets enables users to create customized, secure, robust, and reliable networks, which can either be permissioned or permissionless.
The subnets will remain native to Avalanche and support open experimentation at an advanced scale. In addition, as subnets will not compete with other items for network resources, applications will be able to distinguish between different user experiences.
Such a scenario as the massive network-wide degradation of performance seen when anticipated NFT products launch on Ethereum will become a thing of the past.
Partnering initiatives
The Avalanche Multiverse will bring along an appchain specific to play-to-earn game DeFi Kingdoms, which expanded to Avalanche last December. It would enjoy $15 million in incentives denominated in AVAX and a new CRYSTAL token. CRYSTAL is Avalanche native and created by the DeFi Kingdoms to work alongside the existing JEWEL token on the game.
Further, the Multiverse initiative has partnered with corporate crypto-invested entities, including Jump Crypto, Aave Companies, Valkyrie, Golden Tree Asset Management, among others, to create an institutional DeFi-specific blockchain with natively integrated KYC rules. This would help better leverage DeFi primitives to promote institutional adoption.
Avalanche retains February's momentum in the DeFi space
The total value locked on the Avalanche chain crossed $10 billion on February 06 after dipping below the mark on January 21. The TVL has since remained above the mark even now into the second week of March. Throughout February, Avalanche's TVL grew by $1.5 billion from $8.81 billion to $10.33 billion on the last day of the month.
Avalanche TVL since the start of February
DeFi Llama data shows the chain has a 4.92% 1-month change at the time of writing. The DeFi data and analytics platform further indicates that Avalanche's DeFi market share has, so far in March, consistently ranged between 5.5% and 5.75%. These figures are slightly above those recorded last month, further confirming the retention of momentum from the first week of February.
Worth noting, Avalanche's TVL of just over $11 billion is in range of the total value locked on the BNB Chain, which has an equivalent figure of $11.7 billion.
Avalanche (AVAX) market performance
Though news of the recently-introduced Avalanche metaverse carries a bullish tone, it has barely boosted AVAX price amid the geopolitical tensions in Ukraine and Russia. The price of AVAX has retraced alongside other top altcoins on Wednesday as the upside momentum triggered by Biden's crypto executive order wanes.
AVAX/USD 24-hr trading chart
The token has seen a 7.66% dip in the last 24 hours, falling steeply from a 24-hr high of $79.36 to $72.20 where it is trading. The current price is less than half its all-time high realized last November. Over the last seven days, the pair has shed more than 11% – a reflection of the high volatility in the market.
Seemingly, despite March starting on a high note, the crypto market has subsided. Bitcoin, which has a great influence on the price of altcoins, corrected less than 36 hours following the Biden pump. With many altcoins taking the same path, analysts believe bears are firmly in control and ready to bounce when toppled.
They hold that though the short-term outlook for AVAX is largely bearish, the injection of a bullish factor could change the tides in favor of bulls.
To learn more about this token visit our Investing in Avalanche guide.
