Avalanche is seeing its AVAX prices rise at a time that its peers are experiencing a long week of dips. Avalanche made a sudden surge and hit a daily high of $90. 05 before pulling back to around $87. 77 at the time of writing.
AVAX trades in the green at a 1. 67% gain in the last 24 hours.
What are the reasons for the Avalanche’s price rise? This article will explain the factors that caused AVAX’s price to soar when most coins, including Bitcoin and Ethereum, are in the red.
Why does Avalanche price ricing work?
Today’s Avalanche price rise is due to Terra Luna Foundation’s announcement of Avalanche (AVAX), to its UST Reserve. Terra went ahead and bought AVAX coins worth $100 million.
This move made Avalanche, the second largest 1 solution digital asset, to be added to UST Reserve. The first was Bitcoin.
Terra Luna Foundation announced the news via a tweet:
2/ The @LFG_org‘s OTC deal to add $100 million of $AVAX to the $UST Reserve makes AVAX the first major crypto-asset besides $BTC to be added to the UST Reserve, marking the beginning of a diversified and non-correlated asset pool supporting the $UST peg.
— Terra (UST) Powered by LUNA (@terra_money) April 7, 2022
In addition to adding Avalanche coins to its UST Reserve, and purchasing AVAX coins, Terra also partnered Avalanche in developing a new gaming subnet using Avalanches undernets. Terra Luna Foundation chose Avalanche over Ethereum because they believe Avalanche has rapid growth and a large fan base.
Don Kwon is Terra’s founder.
“Avalanche is still a growing ecosystem…a lot of it is fueled by loyalty to the AVAX token and users feel a lot of affinity with an asset that aligns itself with AVAX. Whereas for the average Ethereum user, aligning yourself with Ether doesn’t really mean that much.”
The Terra Luna Foundation team also tweeted about Terra’s collaboration with Avalanche for the new gaming subnet. They stated that “Avalanche subnets are powerful methods for building the next generation scalable Web3 apps within niche use cases .”
6/ Avalanche’s Subnets are an effective method to build the next generation of Web3 applications that can be scaled within niche uses.
This means that Terra and Avalanche have teamed up to create a new gaming network. More details will follow.
— Terra (UST) Powered by LUNA (@terra_money) April 7, 2022
The above developments have brought an end to the recent AVAX price decline and caused it to start rising. Most investors believe this could continue for the next few days, if not weeks.