Avalanche flips MATIC, TRX and LINK to become a top-10 crypto

Call it mean reversion, a boost from JPMorgan or simply catching up. Whatever the case, Avalanche is a market favorite right now

article-image

Vecteezy.com and LevLev/Shutterstock modified by Blockworks

share

Much has been said of Solana’s recovery since the whole Sam Bankman-Fried thing. But one of the network’s primary rivals, Avalanche, is also having a bit of a moment.

Blink and you might have missed it: Avalanche (AVAX) has flipped bitcoin cash (BCH), polygon (MATIC), polkadot (DOT), tron (TRX) and chainlink (LINK) over the past two weeks.

At $9.8 billion, AVAX is now a top-10 cryptocurrency by market cap (if you don’t count Lido Staked ETH), its highest rank all year. 

In US dollar terms, AVAX has jumped 150% year to date — almost all of it over the past month. Bitcoin (BTC) has returned slightly more, with BTC’s rallies largely credited with turning crypto into a sea of green after a dark, lengthy bear market.

Hit play to see Avalanche flip its way into the top 10

Avalanche’s outsized gains are more apparent when tracking its price against bitcoin. Of the top 30 or so cryptocurrencies, AVAX’s bitcoin ratio is the second-best performer over the past three months, having risen 60%, trailing Solana’s, which nearly doubled.

That means a hypothetical crypto trader who sold BTC for AVAX three months ago could now get 60% more bitcoin back on that play — all while BTC itself has rallied 70% against the US dollar.

As of earlier today, ether’s bitcoin ratio had meanwhile slipped by about one-fifth — half as bad as Binance’s BNB. Anyone who sold bitcoin for ether (ETH) at the start of September would get almost 20% less BTC if closing those positions today. 

Notice how SOL and LINK’s bitcoin ratios pumped first, with AVAX following a few weeks later?

Much like Solana, Ethereum, Tron and Polygon, Avalanche is a layer-1 blockchain that supports stablecoins, DeFi applications, memecoins and even Ordinals-like inscriptions

Still, why are markets favoring Avalanche? 

Vivek Raman, head of proof of stake at boutique digital asset unit BitOoda, pointed out that all the “alternative layer-1” networks outside of Ethereum are having tremendous runs.

“Solana is up more than seven times from its cycle lows after dropping 95% from its 2021 peak,” Raman said.

“Avalanche is the next major layer-1 that is having a mean reversion bounce and is therefore outperforming right now,” Raman continued. “The major two crypto assets — ETH and BTC — were down much less than altcoins, and this Avalanche move is simply part of a catchup move.”

Avalanche is still down more than 80% from all-time high set in November 2021

Avalanche’s tech stack was also used for a recent Project Guardian pilot, led by JPMorgan Onyx, which explored the potential benefits of tokenized investment portfolios. 

The actual Avalanche mainnet wasn’t used, though, with the banks playing around with a fresh permissioned (private) version of the blockchain. 

Still, Raman reasoned that JPMorgan’s tests  “could be a fundamental driver for the [Avalanche] ecosystem.”


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

And a look into the newest name on the Trump ticket: Sen. JD Vance

article-image

Plus, Imran Khan’s intriguing experiment on the speeds of crypto onramps

article-image

The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks

article-image

PayPal has unequivocally made a name for itself as a crypto adopter among fintech giants

article-image

Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians

article-image

Vance, an Ohio Republican, is largely seen as crypto-friendly