Analysts turn bullish on AVAX price as USDC launches on Avalanche
- Circle has launched its stablecoin USD Coin (USDC) on Avalanche to push more dApps to launch on the blockchain.
- Proponents are bullish on Avalanche price and set a $91 fibonacci extension target for the token.
- The DeFi ecosystem's total value locked (TVL) on Avalanche has grown over 30-fold over the past five months.
Circle's launch of its stablecoin signals the firm's push in the DeFi ecosystem. The arrival of USDC on Avalanche blockchain makes it lucrative for other dApps to launch their projects in the ecosystem.
Analysts are bullish on Avalanche price, predict a 10% rally
The total value locked, similar to market capitalization for DeFi applications, has increased over thirtyfold for dApps on the Avalanche blockchain since August 2021. The growth of the DeFi ecosystem on Avalanche received a boost from the network's "Avalanche Rush" initiative, the $180 million incentive program.
Circle's USDC is now live on the Avalanche blockchain. This diversity push from the network that launched Tether's stablecoin USDT last month. USDC accounts for a third of the stablecoin supply in the crypto ecosystem, and its adoption is growing fast. The stablecoin has emerged as a key competitor to Tether.
Fiat-backed stablecoins could trigger a spike in the network's on-chain activity and drive developers to build their projects on the Avalanche blockchain.
Avalanche is compatible with Ethereum's smart contracts. Therefore USDC is available on C-Chain. The contract chain enables the creation of Ethereum compatible smart contracts. Circle's stablecoin is now present on a multitude of networks. USDC is available on Solana, Tron, Stellar and Hedera in addition to Avalanche.
USDC's arrival on Avalanche could trigger a bull run in the token. Analysts are bullish on Avalanche price and have predicted $91 and $142 as the token's next two fibonnaci extension targets.
Michaël van de Poppe, cryptocurrency analyst and YouTuber, expects Avalanche to resume its uptrend and rally 10% to the $91 target.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
