AVAX jumps 13% as gaming partnerships propel growth

AVAX, the native token of Layer-1 blockchain Avalanche, has seen a significant 13% increase in the past 24 hours, becoming the top gainer among the top 100 cryptocurrencies by market cap.

According to the latest data from Crypto.news, the token is currently trading at around $32.2, up 11.5% over the same period, with daily trading volumes having tripled to around $829 million.

AVAX price chart | Source: TradingView

AVAX currently ranks as the 11th largest cryptocurrency with a market cap of $12.7 billion. However, despite recent gains, it remains 78% below its peak of $146.2 reached on November 21, 2021.

Avalanche was introduced in the fall of 2020 by a team led by software engineers Emin Gun Sirer, Kevin Sekniqi, and Maofan “Ted” Yin. The Layer-1 blockchain, which supports smart contracts, quickly positioned itself as a direct competitor to Ethereum.

The latest surge in the price of AVAX comes after it was announced on July 19 that post-apocalyptic RPG game ChronosWorlds had chosen Avalanche as its preferred blockchain for distribution.

This partnership underscores the growing interest in using robust and stable blockchain platforms like Avalanche for gaming applications. In related news, Fableborne’s first play-to-airdrop event, held on the same day, was hailed as a success, attracting over 77,000 concurrent participants.

Additionally, recent trading activities by large-scale investors (whales) have also influenced the price dynamics of AVAX. These investors have reportedly started short-selling the cryptocurrency, especially after it reached a low near $26.

Update on the Whale who brought a bunch of Bitcoin to Avalanche a few weeks ago with the sole intention of investing in the short term $AVAX At the recent bottom near $26 (borrowed 500K AVAX and sent it all to Binance), its health is currently 1.5. If AVAX rises above $50 and Bitcoin stays at current price,… pic.twitter.com/kMHJsGwpwn

— Jony.Sarker.AVAX 🔺 | 🌊📘🧪 (@jonycsarker) July 21, 2024

This price action in AVAX coincides with a broader bullish trend in the cryptocurrency market, which includes a 7% increase in Bitcoin over the past week and a slight 0.5% increase in the broader market, bringing the total market valuation to $2.44 trillion.