Thursday’s Avalanche (AVAX), price reached a record $68.89. Over the past few months, Avalanche has been challenging the Ethereum network’s dominance in smart contract platforms. The project’s website claims that the layer-one protocol can handle more than 4,500 transactions per second, (TPS), with a speed to finality of less then 2 seconds.
Cointelegraph Markets Pro and TradingView data show that AVAX prices have rallied 111% since Sept. 7’s low of $32.10 and now stand at $1.28 billion. This is despite the fact that its 24-hour trading volume has risen 200% to $2.8 Billion.
Chart for AVAX/USDT 4 hours Source: TradingView
The surge in AVAX’s price is due to three factors: the completion of a $230 million investment round by large capital fund, the ongoing migration of liquidity into the Avalanche network and new integrations and protocol upgrade that improve the user experience.
Big funds back Avalanche
AVAX’s Thursday price surge was due to the announcement by a few large funds such as Polychain Capital, Three Arrows Capital, and Dragonfly Capital that they had participated in a $230 million funding round.
This is the largest ever investment in Avalanche’s ecosystem and a sign that bigger institutional players are beginning to show an interest in the Ethereum competitor.
The Avalanche network can be cross-chain compatible to Ethereum. This means that any tokens and projects that run on Ethereum can migrate fully to the Avalanche ecosystem, and benefit from its higher throughput capabilities.
Networks like Avalanche have the opportunity to present their case as a better choice. This could result in a greater market share.
Rising TVL and liquidity migration
A second reason AVAX has grown in strength is the constant migration of assets from networks such as Ethereum to Avalanche in order to take part in its growing decentralized financial (DeFi) ecosystem.
The evidence of asset migration can be seen in the total value locked data (TVL) provided by Defi Lama. It shows that Avalanche’s TVL has been rising rapidly since Aug. 19, and hit a record high of $2.17 trillion on Thursday.
Avalanche has a total value of $2.5 billion Source: Defi Llama
TVL has seen a significant increase in recent years due to the success of several DeFi protocols, including Pangolin (PNG), Trader Joe(JOE), and Benqi (QI).
Related: A bull flag breakout pushes Avalanche towards $80 as AVAX prices hit another record high
Partnerships and integrations in crypto-related areas
A series of announcements about partnership and integration have been another factor that has contributed to AVAX’s value. They have inspired investors and placed the spotlight on the project.
Thanks to Topps’ partnership, the Avalanche nonfungible token NFT ecosystem has experienced an increase in interest. Topps launched its “Inception” NFT digital collectibles series via the network.
A vote is currently underway in Aave, which is one of the most popular DeFi protocols in cryptocurrency ecosystem. This vote will determine if investors would like to see Aave launched on the Avalanche platform. A vote of approval could result in a further increase on Avalanche TVL, since assets that are held on Ethereum in Aave can be transferred to Aave via Avalanche.
The @AaveAave proposition is now live! If you’re part of the $AAVE community and would like to see Aave deployed on #Avalanche, please put your vote in now: https://t.co/Bx4jbUq6mO
— Avalanche (@avalancheavax) September 15, 2021
Cointelegraph Markets Pro data shows that the market conditions for AVAX are favorable over time.
Cointelegraph’s exclusive VORTECS(tm), Score is an algorithmic comparison between historical and current market conditions. It is derived from a combination data points, including trading volume, market sentiment and recent price movements, as well as Twitter activity.
VORTECS(tm), Score (green) vs. the AVAX price. Source: Cointelegraph Markets Pro
The chart shows that the VORTECS(tm), Score for AVAX spiked to the green. It reached an all-time high of 86 on Monda just 24 hours before the price rose 40% in the following two days.
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