Avalanche has put every bit of effort into flaunting its Subnet technology as the future of the blockchain industry, and justifiably so based on what this hyped scaling approach delivers, at least on paper.
Avalanche proposes to power the ApeCoin DAO
The network’s latest attempt to capture on-boarders has been made on ApeCoin DAO. Avalanche has proposed migration of ApeCoin, with a recent tweet shared by Ava Labs CEO Emin Gun Sirer suggesting that ApeCoin would potentially be a boom on Avalanche as a Subnet. He pointed to the high performance and speedy consensus protocol, adding that another perk would be that “the coin would have an additional use case that would help its market and regulatory stance.”
In the proposal published on the ApeCoin forum, Avalanche invited ApeCoin DAO onto its chain, promising rapid transactions, increased throughput, minimal fees, and greater power to scale, bragging the “best underlying technology and engineering support the Web3 space has to offer.” With the proposal, the DAO would also launch the Otherside metaverse on Avalanche.
It is clear as day that Avalanche is preying on (and with the intention to benefit from) the ‘botched’ launch of Otherside NFTs on Ethereum, which saw high transaction fees – more than $100 million –that only ended up essentially getting burned.
Further, Avalanche said that ApeCoin DAO would also benefit from the $290 million incentive program it launched earlier this year to help foot part of the development costs, in addition, to providing technical expertise and support in marketing.
In an interview, Ava Lab’s Head of Strategy Phillip Liu told Decrypt that the Avalanche subnets are the perfect pairing for the Bored Ape ecosystem, including the ApeCoin token.
“In regards to the speed to get a network upright, Avalanche subnets is probably the one solution that can allow the Ape community to spin up their own custom network.”
Avalanche would gain the hero status if the move materializes, attempting to rescue ApeCoin DAO from the mess Ethereum resulted in during Otherside’s debut NFT token launch. With high-profile NFT projects, including the leading Bored Ape Yacht Club (BAYC), this potential migration positions Avalanche for adoption. However, not all APE holders are optimistic about the move, with some preferring scaling onto a layer two on Ethereum, using tech such as zero-knowledge rollups.
Avalanche (AVAX) market performance
Avalanche (AVAX) fell to its lowest price level in 2022 towards the end of last week, touching a multi-month bottom of $21.47 as per CoinMarketCap. Though the AVAX token has recovered slightly in the last three days to $26.50, where it was trading at the time of writing, it is yet to retest $30, having lost ground above this mark last week.
AVAX/USD 7-day trading chart shows that the token is bouncing off the bottom established at around $21.50. The steady albeit gradual ascent over the weekend and into the new week suggests that there is potential for further upside. The biggest concern for bulls will be the immediate resistance to be expected just above the current price range.
Lower lows?
CoinMarketCap data shows AVAX/USD is approximately 81% below its record high value. This reflects the heavy correction that has been witnessed in the crypto space this month. There is little to suggest AVAX will slump and seek support below $20 in the short-term, but investors have to watch out for the uncertainty in the market.
Binance Loans now supports collateralized ADA and AVAX
In other news, the world’s largest cryptocurrency trading platform, Binance, last Wednesday revealed it had added the native tokens of Cardano (ADA) and Avalanche (AVAX) onto its list of tokens supported for Binance Loans. Following the inclusion of the tokens, the pair is now usable as backing (collateral) by Binance Loans in providing loan orders. This will, in effect, result in a reduced cost of borrowing.
To learn more about this token visit our Investing in Avalanche guide.
