Briefly –
- Analysts trust that capital rotates between layer-1 networks, Solana to Avalanche.
- Avalanche’s upside move resembles the prolonged bullish run by Solana, and AVAX appears resilient.
- As AVAX ecosystems record increased total value locked (TVL), crypto analysts see the virtual alt hitting $100.
Since the network announced Avalanche Rush, a $180m incentive program, AVAX witnessed its TVL surging about ten times. Moreover, the layer-1 protocol has multiple technical upgrades awaiting launch in the coming weeks.
For now, Avalanche appears to mimic SOL’s surge to its record high. Such moves had cryptocurrency enthusiasts setting AVAX’s target near $100.
The statement to launch Wormhole, bridging Solana with other ecosystems, proved a pivot update in SOL’s network. It was among the factors that propelled the alt towards new highs over the past month. The ETH competitor managed to secure an ATH beyond $213 before the latest correction emerged. Analysts trust that Solana capital rotates towards the Avalanche network.
Capital flow among layer-1 networks is critical in alt’s price actions. StrongHedge, a pseudonymous analyst and trader, trusts that Avalanche receives support from the capital injection.
The outage witnessed by the Solana ecosystem on 15 September revealed how vulnerable the fastest blockchain is. SOL’S competitors, Polkadot and Avalanche, try to fill the gap by the scalable blockchain. Solana had to go offline before developers solved the technical issue.
The Avalanche network has many upgrades awaiting launch. For instance, there is the Alphax and Alpha Homora V2. The features have multiple functionalities that will attract investors to the crypto project.
Alpha Homora V2 is a leveraged yield farm project, offering two times rewards. Moreover, the update boasts 31 pools at the moment. Alpha Finance newsletter confirmed that the upgrade would ensure a less resource-intensive and efficient chains addition way.
AlphaX targets to remove explicit fundings, ensuring perpetual swaps in funding rates. Currently, trading on spot markets is somewhat challenging because of KYC requirements and custodial risks. With this upgrade, investors can access leveraged short and long positions in a permissionless way.
Avalanche developers expect AlphaX and Alpha Homora V2 to boost the ecosystem’s utility and heighten AVAX demand. The incoming announcements and upgrades had gMAK, a Defi analyst, predicting AVAX will hit $100. He urged Solana rallied towards record highs despite crowding challenges.
