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AVAX to overtake Solana as analysts expect Avalanche to surge to $100

  • Analysts believe that capital is rotating between layer-one ecosystems, Solana to Avalanche.
  • AVAX’s upward climb is similar to SOL’s prolonged bull run, and the Avalanche ecosystem’s native token is resilient.
  • With rising total value locked in AVAX, analysts expect the token to hit $100.

Total value locked has increased nearly ten times since the announcement of the $180 million incentives program Avalanche Rush. The layer-one blockchain ecosystem has technical upgrades lined up over the next few weeks. 

Avalanche mimics Solana’s run to new all-time high; analysts set target at $100

The announcement of the launch of Wormhole (a bridge between Solana and other networks) was a pivotal upgrade to Solana’s ecosystem. It emerged as one of the factors that triggered a rally in the altcoin.

The Ethereum-rival hit a new all-time high above $213 before the recent correction. Analysts believe that capital from Solana is rotating into the Avalanche ecosystem. 

Capital flow across layer-one ecosystems is a key factor in altcoins’ price rally. Pseudonymous trader and analyst @StrongHedge believes that Avalanche is benefitting from the injection of capital. 

The outage in the Solana network on September 15 revealed the vulnerability of the fastest blockchain in the world. Solana’s competitors Avalanche and Polkadot are filling the gap created by the scalable layer-one blockchain. 

The Avalanche ecosystem has lined up upgrades like the launch of Alpha Homora V2 and AlphaX. 

The leveraged yield farming project Alpha Homora V2 offers 2x rewards and currently has 31 farm pools. According to Alpha Finance’s bi-weekly updates newsletter, the launch will see the addition of other chains in an efficient and less resource-intensive way. 

AlphaX aims to do away with explicit funding events and include the funding rate in the price of perpetual swaps. Trading on decentralized spot markets is currently challenging due to custodial risks and KYC requirements. 

AlphaX’s launch will offer traders leveraged long and short positions against smart contracts in a permissionless manner, tapping into beginners and entrants in the perpetual swap market. 

The team behind Avalanche expects the launch of Alpha Homora V2 and AlphaX to boost the utility of the ecosystem and further increase the demand for the native token AVAX. 

In light of the updates and upcoming announcements, DeFi projects analyst @gMAKcrypto expects AVAX to hit $100, arguing that SOL rallied higher despite being considered crowded. 

The tussle between Avalanche’s ecosystem and Solana network stems from similar price trends of the native cryptocurrency. 

Lex Moskovski, Chief Investment Officer at Moskovski Capital, recently pointed out how AVAX behaved like SOL. 

The token’s total value locked (equivalent to a market capitalization of cryptocurrencies) has exploded, crossing $3 billion. Of the $180 million worth of incentives, only $5 million has been deployed by the Avalanche Rush program thus far. Analysts expect explosive growth in the layer-one ecosystem following the upgrades. 

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