Avalanche (AVAX) Records 40% Surge in Wake of $180 Million Incentive Program
Avalanche (AVAX), the sixth-largest defi protocol by market cap and the twenty-seventh largest cryptocurrency overall registered an over 40% surge in price on Wednesday. AVAX’s price jumped from a daily low of $21.54 to record a new three-month high of $33.71. The Defi protocol has more than tripled its price from the monthly low of $9.34. AVAX became the second-largest gainer of the crypto market due to the recent massive surge.
The current price surge is being attributed to the recent announcement of a $180 million “liquidity mining incentive program” to help protocol scale to new highs. The incentive program titled “Avalanche Rush” is set to help the network attract more Defi protocols to its platform starting with the top DEfi protocols AAVE and CURVE.
The Avalanche Foundation has allocated up to $20 million AVAX for Aave users and $7 million AVAX for Curve users. More funds would be allocated towards the protocol in the second phase.
The Defi platform hopes to bring cheaper Defi functionality for the masses with its Rush program as it incorporates more protocols on its platfrom.
“Avalanche Rush will be a showcase for users to see the power of Avalanche, and dive into a vibrant community at the cutting edge of decentralized finance,” said Emin Gün Sirer, Director at the Avalanche Foundation. “The combination of Aave, Curve, and Avalanche will create really interesting synergies that DeFi users will be excited about.”
Avalanche Building L2 Solutions For the Defi World
The growing burden on the Ethereum ecosystem especially in the wake of rising NFT and Defi popularity make it quite difficult for the network to accommodate everyone. This is the reason the popularity of Layer-2 solutions has soared in recent times. Avalanche can function as the L2 for the Defi ecosystem with its cheap transaction cost and fast transaction processing.
Michael Egorov, Chief Executive Officer at Curve Finance.
“As DeFi becomes more and more popular, it becomes clear that Ethereum blockchain is currently struggling to fit all the activity. Thus, it is important to expand to other chains and L2s. We find Avalanche offering an excellent opportunity with its unique decentralized consensus mechanism, high throughput and low transaction fees,”