Despite Avalance’s (AVAX) strong fundamentals evident from its large DApp use and DeFi ecosystem, it continues to trade below $65. AVAX prices are down over 30% this April alone. But notwithstanding the negative movement of its price, the smart contract platform is still a strong challenger for decentralized applications.
This strong sentiment is mainly due to the scalability of AVAX, its huge footprint, and its low-cost transaction in the DeFi realm. Avalance is also compatible with EVM, the powerful, sandboxed virtual stack embedded within all full Ethereum Node. It is unique as it is not plagued by the operational bottlenecks of network congestion and high transaction charges.
AVAX picked up more than $9B TVL through the offer of a PoS layer one scaling solution. It is an extremely relevant indicator as it measures deposits on the smart contract of the network. BNB Chain, for example, has been running from September 2020 and holds $10B in total value locked.
Positive Indicators From Avax Could Boost Price Support
Despite a slide in AVAX token prices and the fact that the total value locked stands at less than that of its rivals, a majority of investors are bullish about it. Discerning investors are going by the fundamentals, the positive development that occurred in April.
A Bloomberg report on April 14 reveals that Ava Labs, who are the lead developers of Avalance blockchain, have picked up $350M from investors. That deal puts a total valuation of $5.25B on the company.
DappRadar reveals that Avalanche is holding onto close to a hundred active applications. They range from NFTs to decentralized finance and even gaming.
The people behind Terra USD stable coin picked up a total of $200M in Avalanche for their USD reserves in April. Do Kwon, the co-founder of Terra, has cited the solid economic growth along with its base of large users.
Despite all, AVAX is down 53% below its highest ever of $147.