The Avalanche crypto price has moved sideways in the past few days despite making substantial progress in its ecosystem growth. AVAX token was trading at $23.35 on Thursday, lower than the July high of $26.85. This article explores why the Avalanche price may surge soon.
Potential for SEC AVAX ETF approval
The first main catalyst for the Avalanche price is that the Securities and Exchange Commission (SEC) may approve the recently filed AVAX ETF later this year.
Companies like VanEck, Canary, and Grayscale have filed for an ETF to track the token, and based on its fundamentals, there are chances that they will be approved.
Recent data showed that there was vast demand for altcoin ETFs like Bitcoin, Solana, and XRP. As such, an AVAX ETF will likely lead to more sustained inflows this year.
Avalanche network is growing
The other primary reason the Avalanche crypto price is expected to surge is that its network is expanding. For example, just this week, Skybridge Capital, the firm started by Anthony ‘The Mooch’ Scaramucci, announced that it would launch a $300 million tokenized fund on the network.
Meanwhile, Toyota, the world’s largest automaker, has launched a prototype for vehicle financing using its technology. Most importantly, the state of Wyoming launched its first stablecoin on Avalanche, a sign that it sees potential in it.
Toyota Blockchain Lab is exploring how on-chain systems can reshape vehicle financing, ownership, and mobility services. Their prototype shows Avalanche’s network of interconnected blockchains is a natural fit for their multi-chain framework.
Additional data indicates that the Avalanche ecosystem is experiencing growth. Its DeFi network has a total value locked (TVL) of $2.7 billion, with top names like Aave, Benqi, Euler, and Blackhole having the most market share.
Avalanche has become a major player in the decentralized exchange (DEX) industry. Dapps in its network processed tokens worth over $440 million in the last 24 hours, making it the 8th biggest chain. This growth has brought its 30-day volume to over $11.4 billion.
The other key part of Avalanche’ ecosystem that is growing is its stablecoin. It has become the ninth-largest player in the sector, with $1.67 billion in supply. Recent data shows that the stablecoin volume jumped to almost $200 billion in the last 30 days.
Avalanche has had other major partnerships, including with FIFA and BlackRock.
Avalanche price has strong technicals
The other notable catalyst for the AVAX price is that it has formed the highly bullish inverse head-and-shoulders pattern. In this case, the head section is at $15.5, its lowest level this month. The shoulder section are at $18, and the neckline is at $26.80.
Avalanche crypto price has also moved slightly above the 50-day and 100-day Exponential Moving Averages (EMA), a sign that bulls are gaining control. Therefore, the token will likely continue rising, with the initial target being at $38, its highest level since January this year.
AVAX price chart | Source: TradingView
High staking yield
The other important catalyst for the AVAX price is that it has a high staking yield, making it ideal for income investors. AVAX boasts a staking yield of 8%, surpassing that of tokens like Tron, Cardano, and Solana. Data shows that it has a staking market capitalization of $5.32 billion and a staking ratio of 49%.
Investing in a token with a high staking yield helps to offset the price declines. In this case, if AVAX price falls by 10% a year, it means that its total return is minus 2.8% a year.
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