With its price climbing 17% over the past seven days, Avalanche (AVAX) has lately been on a winning run. Right now, the cryptocurrency is trading at $28.12
Avalanche (AVAX) has been on a roll lately, with its price surging 17% over the past seven days. At the time of writing, the cryptocurrency is trading at $28.12, up 7% in the past 24 hours alone.
This sharp increase comes amid a broader recovery in the crypto market, which is being driven by a key development in the U.S. financial landscape: the Federal Reserve's decision to lower interest rates.
On September 18, the Fed cut interest rates by 50 basis points, setting the new target range at 4.75%-5%. This marks the first rate cut by the Fed in four years. It is designed to help lower inflation and boost economic growth.
While the cut was widely anticipated, it still triggered a shift in both traditional and crypto markets; AVAX emerged as one of the top performers.
Meanwhile, the outlook for AVAX price remains largely positive. With the cryptocurrency trading at a steep discount of 227% to the projected price for next month, a strong rally could be on the horizon.
DeFi Strength Boosting AVAX
Beyond macroeconomic factors, the surging price can also be attributed to Avalanche's strong performance in the decentralized finance (DeFi) sector.
As it continues to grow its total value locked (TVL), data from DeFiLlama shows that Avalanche is making significant strides in DeFi.
On September 18, the TVL across all protocols on the network stood at 38.63 million AVAX, indicating a collective increase of 11% in recent months—from 28.1 million AVAX in Q1 to 30.8 million AVAX in Q2.
TVL plays a crucial role in assessing the adoption and liquidity within DeFi networks. Generally, higher TVL translates into greater price stability and long-term growth potential for AVAX.
Short-Term / Long-Term AVAX Price Projections
Technical indicators for AVAX are pointing towards a promising future. Backed by strong accumulation and improving market sentiment, analysts are estimating that the token could rally by 245% in the next three months.
Over the next six months, a gain of 180.19% is anticipated, while a further rise of 166.37% is projected over the next year.
These projections indicate a fruitful year ahead for AVAX, as it gains wider presence in both the DeFi ecosystem and the broader crypto market.
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