Top 4 Reasons Why Avalanche Price is on the Verge of a Surge

Avalanche (AVAX) price has crashed into a bear market this month, crashing by over 22% from its highest level in September. Avalanche crypto was trading at $28 on Thursday, its lowest level since September 26. Still, the coin has numerous catalysts that will help boost its performance.

Avalanche Price to Benefit from the Ongoing Transaction Jump and Burn Rate

One of the main catalysts for the Avalanche crypto price is the strong growth of the network this year. That has helped it generate more money in terms of fees.

Data compiled by Nansen shows that its transactions jumped by 66% in the last 30 days to over 51 million. Thus, it became one of the biggest layer-1 networks in the crypto industry.

The ongoing Avalanche growth is primarily driven by increased adoption from companies and its expanding market share in industries such as decentralized exchanges and stablecoins.

For example, DeFi Llama data shows that the network’s share in the DEX industry has jumped. Its volume has also soared by $40 billion in the third quarter.

Another data shows that the amount of money the network generated in the last 30 days jumped by almost 100% to $1.52 million. This is important for the AVAX price because Avalanche burns all the fees generated by the network.

As a result, the burn rate has continued to increase in the past few months. Avalanche has burned over 4.8 million tokens over time. Additionally, its average daily token burn has increased to ~1,250 AVAX tokens, equivalent to $35,000.

Token burns are normally bullish for cryptocurrencies because they reduce the number of coins in circulation, cutting their inflation rate.

Upcoming Avalanche Granite Upgrade

The other main catalyst for the Avalanche price is the upcoming Granite upgrade, which will introduce more features in the network.

Granite will enhance the ICM verification and reduce the gas costs for users. It will optimize interchain messaging. Its goal is to integrate features that are currently in Cosmos, which will make it a faster-growing platform.

Granite will also introduce biometric signatures, including FaceID and TouchID, which will help ensure passwordless and secure transactions. The other major feature in the network is the dynamic minimum block times. It will ensure sub-second block times and boost its performance.

Cryptocurrency prices normally do well before and after a major network upgrade. For example, Ethereum has jumped to a record high following the recent Pectra upgrade.

AVAX ETF Approval and Demand

The Securities and Exchange Commission (SEC) could approve spot cryptocurrency ETFs as soon as the government shutdown ends.

The primary applicant for a spot AVAX ETF is Grayscale, one of the biggest companies in the industry. Its application is for converting the existing trust into an ETF, which will increase the pool of investors. An AVAX ETF approval will likely be highly bullish for the coin.

More demand is coming from companies that have filed to create AVAX treasuries. Avalanche Treasury is hoping to raise $1 billion for these purchases. Similarly, AVAX One, formerly known as AgriForce, aims to buy tokens worth over $700 million in the coming months.

Avalanche Price Technical Analysis

The daily timeframe chart shows that Avalanche price has bullish technicals. It has remained above the important support level at the 100-day Exponential Moving Average (EMA). It shows that bulls are in control.

Also, the coin has formed a cup-and-handle pattern. It is characterized by a horizontal resistance at $36 and a rounded bottom, which, in this case, was at $15.60. The coin has now moved to the shoulder section of this pattern.

Therefore, the most likely scenario is where the coin rebounds and initially hits the upper side of the cup at $36. A move above that level will point to more gains, potentially to the extreme overshoot level of the Murrey Math Lines tool at $43.75.