The introduction of the stablecoin USDC on Avalanche has had this effect on AVAX’s price
Avalanche’s price appreciated by nearly 3000 percent in 2021. Indeed, in the first half of November alone, Avalanche saw a 130 percent increase from $62 to the all-time high of $147. However, the 12th-ranked alternate has spent more effort consolidating or correcting since then.
On December 14, despite the status of the larger market, AVAX’s surge seemed to accelerate with news of Circle’s stablecoin, USDC, being launched on Avalanche. The addition of USDC to the Ethereum-killer smart contract platform is intended to boost the DeFi ecosystem on the network.
In the past year, Avalanche’s total value locked (TVL) has increased by more than thirtyfold. The blockchain-based DeFi ecosystem got a significant boost after the network’s $180 million incentive scheme, dubbed ‘Avalanche Rush.’ The increasing TVL was also suggestive of institutional interest in blockchain technology.
Interestingly, the 11th-ranked currency LUNA had a rise in the first week of December, and Terra’s expansion in the stablecoin sector assisted its recent gain. Now that AVAX is experiencing the same thing, the alt has a reasonable chance of rising in the remaining year.
Stablecoins backed by fiat are often credited for igniting a surge in on-chain activity and encouraging developers to build their ideas on blockchains.
On-chain growth that is healthy
Apart from its dominance in the DeFi domain and its growth in TVL, AVAX’s increasing active addresses were also symptomatic of increased blockchain engagement. On December 14, Avalanche’s Daily Active Addresses achieved an all-time high in tandem with soaring pricing.
Additionally, on-chain activity has been quite stable in recent months. For example, the daily transaction count on Avalanche’s C-Chain has increased significantly. This meant that an increasing number of users were transacting over AVAX’s network.
Avalanche, on the other hand, required to establish itself above the $95 level, as it oscillated 35% below its all-time high of $89.32 at press time.
AVAX’s RSI, however, has finally begun to rise after a continuous decline since the end of November. With AVAX already trading over $100, this might provide a lift to AVAX’s price trajectory in conjunction with USDC’s launch on Avalanche.