The Avalanche ecosystem is abuzz with excitement as Ava Labs, the team behind the project, recently unveiled Vryx, a revolutionary scaling solution promising to further enhance the network’s capabilities.
This news, coupled with the impressive growth of Avalanche’s DeFi (decentralized finance) total value locked (TVL), has fueled a recent surge in the price of AVAX, the network’s native token.
Vryx: Avalanche Layer-2 Scaling New Heights
Vryx is a novel subnet-specific virtual machine (SVM) designed to scale individual subnets on the Avalanche network independently. This allows for tailored optimization based on the specific needs of each subnet, enabling them to process transactions faster and at lower costs.
Vryx’s modularity and flexibility hold immense potential for various applications, including high-speed gaming, real-time financial settlements, and complex dApps.DeFi is flourishing on AvalancheThe Avalanche DeFi scene has witnessed phenomenal growth in recent months.
According to DeFi Llama, Avalanche’s TVL currently stands at over $861 million, marking a significant increase from $484 million just a few months ago. This surge is driven by the influx of innovative DeFi projects building on Avalanche, attracted by its fast transaction speeds, low fees, and supportive community.
Avalanche Inscriptions Drive On-Chain ActivityThe introduction of Avalanche inscriptions, allowing users to trade NFTs based on the efficient ASC-20 token standard, has significantly increased on-chain activity on the Avalanche blockchain.
Since its launch in June last year, over 100 million inscriptions, including popular AVAV, DINO, and SNOW tokens, have been made, leading to a 2000% rise in transactions within a week. However, this surge has also caused increased transaction fees and network congestion, with users paying around $1.5 million in inscription-related fees over five days in late November.
A further increase in fees occurred due to non-inscription transactions, causing a spike in the gas price per unit on the Avalanche blockchain in December.
AVAX/USD Technical Analysis
The AVAX/USD price chart reveals a promising technical picture. After a period of consolidation, the price broke out of a descending wedge pattern on January 24th, indicating a potential reversal of the previous downtrend.
Additionally, the Relative Strength Index (RSI) is trending upward, suggesting increasing buying pressure.