One of the best performers this past week, and in recent weeks, has been Avalanche (CRYPTO:AVAX). This top-10 cryptocurrency by market capitalization has seen double-digit increases over various seven-day periods of late. Such moves are not trivial, even in the highly volatile cryptocurrency space.
Notably, Avalanche has outpaced a number of its mega-cap peers of late. Accordingly, many investors may wonder if these returns can continue. Let’s dive into what’s been driving Avalanche higher in the first place.
Adoption of Terra’s UST by Pangolin
Pangolin is one of the biggest DEXs (decentralized exchanges) powered by the Avalanche blockchain. This community-driven DEX recently announced that Terra‘s UST would be its default stable coin.
Via a Twitter post, Avalanche announced that UST will be the default token used for individuals logging into this platform. This move is part of Pangolin’s commitment to supporting decentralized stablecoins. This is an innovation-oriented move many investors like.
Indeed, Avalanche has been a key proponent of innovation in the blockchain space. The network’s Avalanche Rush incentive program is something that could provide more interest around this platform. This incentive program provides access to AVAX, LUNA, and other rewards to Pangolin’s users.
Fastest transaction “time to finality”
Besides the fact that Pangolin adopted Terra’s UST, there are more reasons for the growing popularity of Avalanche. This smart contract-enabled proof-of-stake blockchain boasts the fastest transaction “time to finality”.
The “time to finality” is one of the best measures of speed in the cryptocurrency industry. It measures the time duration taken to guarantee that a particular transaction will not be canceled, altered, or reversed.
As per this measure, Avalanche is the industry’s fastest smart contract platform boasting a “time to finality” of less than two seconds. As a reference, it is 60 minutes for Bitcoin. And there’s more — Avalanche provides as many as 4,500 transactions per second, compared to Bitcoin’s seven. This sort of speed advantage is key for developers looking to build new dApps.
Bottom line
The rallies we’ve seen take place in recent weeks have been the result of a number of factors. Indeed, macro events have once again brought interest to the crypto sector. As a way of hedging exposure or diversifying one’s portfolio, cryptocurrencies have become more appealing.
However, in Avalanche’s case, there also appears to be key token-specific factors. This network is seeing impressive growth. It’s got great fundamentals. And this network’s speed and cost advantage is very noteworthy.
As investors continue to look for growth in the crypto world, Avalanche promises to be a top option. Right now, this is one of the hottest tokens in the market for good reason.
