Avalanche (AVAX) Rallies On Fed Rate Cut, DeFi Growth Boosts Long-Term Outlook
20 Setembro 2024 - 11:30PM
NEWSBTC
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, up 7% over the past 24 hours
alone. This abrupt increase fits a larger recovery across the
crypto market driven by a significant shift in the US financial
scene: the Federal Reserve’s decision to lower interest rates.
Related Reading: XRP Price Surge Could Hit 9,470% — Analyst
Predicts $27 Target In Bold Forecast The Fed lowered interest rates
by 50 basis points on September 18, therefore defining the new
range as 4.75%-5%. Aimed at helping to lower inflation and increase
economic development, the Fed’s decision to drop rates is the first
one in four years. Although the cut was anticipated, it nonetheless
caused volatility in both conventional and cryptocurrency markets;
AVAX turned up as one of the best performers. AVAX’s price
projection is still quite positive meantime. With the
cryptocurrency selling 227% below projected price projections for
next month, a major surge could be just around the corner. DeFi
Powerhouse In The Making The current price increase goes beyond
simply macroeconomic considerations. As it keeps increasing its
total value locked (TVL), Avalanche is also making great strides in
the decentralize finance (DeFi) department. From 28.1 million AVAX
in Q1 to 30.8 million AVAX in Q2, Avalanche’s TVL has climbed by
11% in recent months, data from DeFiLlama shows. The TVL across all
protocols on the network as of September 18 stood at 38.63 million
AVAX. Evaluating uptake and liquidity inside DeFi networks depends
critically on TVL. Higher TVL usually indicates that more people
are locking assets into DeFi systems, which would translate for
increased pricing stability and long-term expansion for AVAX. AVAX
Projections: Short-Term/Long-Term Technical indicators of AVAX
point to a bright future. Supported by significant accumulation and
improving market sentiment, analysts estimate the token might climb
by 245% in the next three months. Six months from now, a 180.19%
gain is expected; over the next year, a 166.37% rise follows. As
Avalanche gets greater traction in both its DeFi environment and
the larger crypto market, these forecasts confirm a productive
months ahead. Related Reading: Cardano Goes Bullish On-Chain: Can
ADA Price Catch Up? Fed’s Influence Although the rate decrease by
the Federal Reserve has given the market great momentum, some
experts think that its influence might be fleeting. Though the
longevity of this surge is yet unknown, risk assets like
cryptocurrencies generally react significantly to changes in
interest rates. But given about half of AVAX holdings are currently
in profit, investor attitude is generally positive. All eyes are on
the token’s ability to shatter important resistance levels as
Avalanche gains traction in the DeFi market. Should the state of
the market remain positive, AVAX may be en route to both long-term
and short term growth. Featured image from Pexels, chart from
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