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.
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.
