Altcoins
Avalanche Price Soared After the Amazon Deal: Be Careful!
Avalanche was the talk of town on Thursday as the token surged by more than 30%. This AVAX price rally happened as investors reacted to a new deal between Amazon and Avalanche. The token soared to a high of $16.52, which was the highest point in months. It has jumped by more than 40% from the lowest point in 2022.
Avalanche and Amazon deal
The biggest crypto news of this year is the deal between Amazon and Avalanche. Amazon is the biggest e-commerce company and the largest cloud computing provider in the world. Avalanche, on the other hand, is one of the biggest smart contract platforms in the world.
In a statement, Avalanche said that Amazon will use the blockchain in its cloud computing product for both companies and governments. AWS will support Avalanche’s infrastructure and dApp ecosystem while node operators will be able to run in AWS GovCloud.
Another part of the deal will see Ava Labs become a member of the AWS Partner Network. This means that the company will help customers deploy custom offerings on AWS. For a start, it will add Subnet deployment as a managed service to the AWS Marketplace. In a note, the president of Ava Labs said:
“AWS Activate is an excellent resource for developers to bring apps to the masses with Avalanche’s trailblazing speed, security, and scalability at their core.”
This deal is a samp of approval for Avalanche. For one, there are hundreds of similar projects that include Ethereum, Aptos, Solana, and BNB Chain. It is also an important thing because of the scale of Amazon since it is one of the biggest companies in the world.
However, Avalanch still faces numerous challenges. For example, its DeFi ecosystem is deteriorating, with the total value locked falling from over $12 billion to just $800 million.
Avalanche price prediction
Historically, crypto prices tend to soar when there is a major announcement. However, these gains tend to be short-lived as the enthusiasm fades. A look at the four-hour chart shows that the token soared and moved above the key resistance level at $14.40, the highest point since December 13. The coin moved above all moving averages.
Therefore, the coin will likely continue falling and retest the key support level at $14.40. If this happens, it will then resume the bullish trend and retest this week’s high of $17.
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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