Avalanche's bridge hits $1 billion transfers while AVAX price resumes bull rally

  • Following the announcement of liquidity mining rewards, several Decentralized Finance (DeFi) projects have started building on Avalanche, including Aave, Curve Finance, and SushiSwap.
  • $8.6 million worth of Avalanche tokens have been burned; traders expect AVAX to rally as the altcoin becomes a deflationary asset.
  • Avalanche Bridge was recently re-released alongside Avalanche's liquidity mining incentives program worth $180 million.

Avalanche's native asset AVAX resumes price rally as more decentralized applications migrate from Ethereum ecosystem to AVAX blockchain. 

Avalanche's new low-cost bridge to Ethereum drives significant increase in the price and adoption of AVAX

Avalanche's Decentralized Finance (DeFi) ecosystem has hit $1.8 billion in Total Value Locked (TVL) over the past 30 days. This surge in TVL can be attributed to the increased deposits on the Avalanche blockchain from projects like Aave, Curve Finance, and SushiSwap. 

The $180 million liquidity mining incentive program, Avalanche Rush, was launched earlier this month, and it has triggered a spike in decentralized applications building on the AVAX blockchain. 

Alongside the incentive program, the smart contracts platform has re-released its bridge to transfer assets from Ethereum to the Avalanche network. Over $1 billion in Ethereum assets were transmitted through the "Avalanche bridge," marking its success and adoption in the AVAX ecosystem. 

In less than 30 days, Avalanche's DeFi TVL has spiked from $180 million to $1.8 billion, and the network's native asset, AVAX, has rallied nearly 283%. 

Luigi Demeo, Director of DeFi at Ava Labs said,

We've kind of seen all these things culminate at once, between the bridge, lending, a massive incentive program and a lot of things the team has been working on very deeply, heads down, for six months.

The release of several Layer 1 protocols on the Avalanche network is another factor driving higher the native asset's price. Aave, Curve Finance, and SushiSwap are among DeFi's largest protocols, and deploying their implementations on Avalanche has paved the way for other projects in the DeFi network to migrate from Ethereum to Avalanche for faster and cheaper transactions. 

The AVAX team has burned $9 million worth of AVAX. Since Avalanche's native asset has a hard cap of 720 million AVAX tokens, traders expect the asset to turn deflationary once a substantial percentage of the tokens are pulled out of circulation permanently through the burn. 

Pseudonymous altcoin analyst behind the Twitter handle @AltcoinSherpa has been accumulating AVAX since August 8, consolidating other altcoins in his portfolio. The analyst shared an update on the consistent increase in the size of his AVAX holdings. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Solana and XRP ETFs may be on the cards in 2025, Standard Chartered analyst says

Solana and XRP ETFs may be on the cards in 2025, Standard Chartered analyst says

Ethereum Exchange Traded Fund approval news has renewed optimism on Solana and XRP ETFs approval in 2025. Analysts at Standard Chartered believe more cryptocurrency ETFs may be approved next year, and these assets will not be classified as securities. 

More Solana News

Uniswap Price Forecast: UNI could be poised for 30% rally after month-long lull

Uniswap Price Forecast: UNI could be poised for 30% rally after month-long lull

Uniswap price has broken out of a 35-day consolidation this week, a sign of a possible rally ahead that could increase the token’s price around 30%. Technical indicators support the bullish thesis, while on-chain data also aligns with it.

More Uniswap News

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Dogecoin inspiration Kabosu dies, leaving legacy of $22.86 billion market cap meme coin behind

Kabosu, the popular Shiba Inu dog that inspired the logo of the largest meme coin by market capitalization, Dogecoin, died early on Friday after losing her fight to leukemia and liver disease. Kabosu had gained popularity as the dog behind the viral “doge” meme. 

More Dogecoin News

XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases

XRP climbs past $0.53, SEC Chair Gensler says the agency has done very well in court cases

Ripple lawsuit ruling is expected soon, following the new US crypto bill, FIT21. SEC Chair Gary Gensler says the agency has fared well in legal battles while speaking at the ICI 2024 Leadership Summit. 

More Ripple News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis