Avalanche (AVAX) price is down more than 30% in April, but despite the negative price move, the smart contract platform remains a top contender for decentralized applications due to its scalability, low-cost transactions and its large footprint in the decentralized finance (DeFi) landscape.
The network is compatible with the Ethereum Virtual Machine (EVM) and unique in that it does not face the same operational bottlenecks of high transaction fees and network congestion.
Avalanche was able to amass over $9 billion in total value locked (TVL) by offering a proof-of-stake (PoS) layer-1 scaling solution. This indicator is extremely relevant because it measures the deposits on the network’s smart contracts. For instance, the BNB Chain, running since September 2020, holds $10.4 billion in TVL.
Positive news could create a price support
Even though the AVAX token price has suffered and the TVL stands behind some of its competitors, investors remain bullish, based on fundamentally positive developments that occurred in the month of April.
According to an April 14 report by Bloomberg, Ava Labs, the lead developer of the Avalanche blockchain, raised $350 million from investors. This deal valued the company at $5.25 billion and according to data from DappRadar, Avalanche holds nearly 100 active applications, ranging from decentralized finance to nonfungible token (NFT) marketplaces and gaming.
Earlier in April, the organizations behind the Terra USD algorithmic stablecoin purchased a combined $200 million in AVAX for their strategic Terra USD…