Smart Contract Platform AVAX Bounces Back, Up 80% from January Lows

Avalanche (AVAX) has managed to rally its price up by 80 percent after last month’s lows. AVAX’s recovery now extends into its third week, mainly due to similar upside movement across the top crypto assets.

AVAX, a layer-1 smart contract platform built by Ava Labs, is a proprietary proof-of-stake blockchain that is Ethereum-compatible and allows developers to build and deploy dApps on the platform. On February 3, it rallied almost 16 percent to reach US$96.50, its best performance since January 14.

The massive single-day growth has been attributed as part of a recovery that began in earnest on January 22 after Avalanche’s token AVAX hit a low of US$53. Extrapolating from this data, AVAX’s net rebound has totalled more than 80 percent.

Big Thaw for ‘Crypto Winter’

Since the beginning of 2022, crypto markets have plummeted as investors assessed the US Federal Reserve’s monetary tightening prospect. AVAX, like many other coins, had lost 65 percent in value in what is now being termed as a potential “crypto winter”, after reaching a record high price of above US$150 in November.

However, the market has recovered almost half its losses after bottoming out in late January, pushing projects such as AVAX to recover. Added to this, AVAX’s price also rose as Avalanche – as a standalone blockchain project – reported massive network growth at 2021’s close.

Late last year, AVAX soared after news of a partnership with the world’s biggest accounting firm, Deloitte, and also skyrocketed after completing a US$230 million investment round.

AVAX Climbs the Leaderboard

Avalanche saw a rise in the number of its daily active addresses to 70,000 per day in Q4 2021 versus 10,000 per day in Q3. AVAX has also ascended the blockchain leaderboard as billions of dollars of investor capital return to the project and it sees a 714 percent rise in the TVL (total value locked). AVAX now has US$10.48 billion in TVL, giving it the fastest growth among its competitors within the layer-1 and layer-2 categories – after the arrival of leading Ethereum protocols Aave and Curve into its ecosystem.