The Avalanche price has popped, making AVAX the new kid on the bloc. The coin has jumped to $49, which is slightly below its all-time high of $59.3. This price is 418% above the lowest level in July, bringing its total market capitalization to more than $8.5 billion. It has become the 23rd biggest cryptocurrency in the world.
Why AVAX Soared
There are several reasons why the Avalanche price has bounced back in the past few weeks. First, the rally is mostly because of the strength of the cryptocurrency industry.
With Bitcoin having bottomed at $30,000, other altcoins like Cardano and Solana have all bounced back. This provides further evidence of the close correlation that exists among cryptocurrencies. The rebound has been supercharged by the fear of missing out (FOMO) in the market as inventors bet on the next big thing.
Second, the AVAX price has jumped substantially because of the recent $180 million DeFi incentive program. In a recent statement, the developers said that they will offer a $180 million incentive program as it tries to grow its DeFi ecosystem. For starters, Avalanche provides blazingly fast and low-cost smart contract solutions that enable developers to build decentralized applications.
Third, the Avalanche price is rising after the bridge program that enables transfers from across other blockchains. In a statement in August, the developers said that the Avalanche Bridge transferred more than $100 million tokens to and from Ethereum.
Finally, there is the improvement of tokenomics through burning. This is a concept that destroys many AVAX coins in circulation. Ethereum introduced the concept of burning in its London hard fork.
Avalanche price prediction
In my previous Avalanche price forecast, I noted that while the coin was the most overbought in eight months, the momentum would continue. The price managed to move above the key resistance at $43.88 during the weekend. This was its highest level on May 7.
It also moved above the 25-day and 50-day exponential moving averages (EMA) while the MACD has kept rising. Therefore, the AVAX price will likely keep rising as bulls target the YTD high at $59.33. On the flip side, a drop below $30 will invalidate this view.