The recent price moves had AVAX hitting another record high as the protocol sees magnified inflows via its cross-chain bridge. Also, institutional investors pledged to fund the growing Avalanche network with $230 million.
On 16 September, AVAX rose to a new ATH near $68.89. Avalanche network has seen impressive performance over the past few months, challenging ETH’s smart contracts dominance. According to the Avalanche website, the layer1 protocol can handle over 4,500 transactions every second with less than two seconds of finality time.
TradingView and Cointelegraph Markets Pro data indicates the AVAX surged by 111% to a record high on 16 September since the $32.10 low on 7 September. That had the asset’s 24-Hr trading volume surging by 200% to stand at $2.8 billion.
The reasons behind the AVAX surge include the $230 investment funding, protocol upgrades, and new integrations to improve user experience and liquidity migration to the Avalanche ecosystem.
Large Funds Support Avalanche
The AVAX 16 September upswing followed the funds’ announcement. Renowned firms, including Dragonfly capital, Three Arrows, and Polychain Capital, participated in the funding round worth $230 from the crypto project.
Keep in mind that Avalanche has never witnessed such a high investment before. Moreover, that shows that the ETH competitor is attracting large institutional investors. Remember, Avalanche is a cross-chain network compatible with ETH. That means any project or token operating on Ethereum can migrate to AVAX. The lower transaction charges and high capabilities set the Avalanche network ahead of the game.
Liquidity Migration
The continuous asset migration from platforms such as Ethereum has added strength to AVAX. That comes as most crypto projects find it profitable to join the growing DeFi ecosystem. The Defi Llama data noted the liquidity migration towards Avalanche on Total Value Locked. AVAX has seen its TVL surging rapidly since 19 August, attaining a record high at $2.17 billion on 16 September.
The growth and launch of multiple DeFi protocols on Avalanche, including Pangolin, Trader Joe, and Benqi, contributed to the heightened TVL.
Partnerships and Integrations
Integrations and partnership announcements that excited investors boosted AVAX value. For instance, collaborating with Topps had most investors interested in the Avalanche NFT network. For now, the Aave community awaits to see if AAVE will join the Avalanche platform. If approved, AVAX will witness increased TVL.
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