The price of Aavegotchi (GHST) surged to a new all-time high (ATH) of $1.86 on March 2, after the platform successfully completed its mainnet launch and NFT sale. The dramatic rise in the token’s price follows in the path of the platform’s recently growing popularity. This is well reflected in its NFT token sale that completely sold out, seconds after its launch.
NFTs (non-fungible tokens) have been all the range in the crypto space as they have become the latest buzzword that is making wave across the sector. So much so, that NFTs have been compared to the 2017 ICO craze by crypto insiders, with Litecoin creator, Charlie Lee being the latest to liken the two trends.
The comparison is not without merit as some NFTs have sold for crazy amounts of money lately, some in the tune of millions of dollars, actions that have subsequently raised eyebrows.
Aavegotchi is one project that does seem to share this concern as it has benefited massively from the DeFi and NFT boom. Market data shows that the platform’s governance token price rose by 35% in a few hours from $1.36 on March 1 to $1.86 the following day, reaching a new all-time high in the process.
Based on market data and recent developments, Aavegotchi’s price breakout can be attributed to three reasons; its migration to the Polygon network, successful NFT sale and upcoming mainnet launch.
On Jan. 26. the Aavegotchi team announced that they would cross-over to the Polygon network in response to the rising Ethereum network fees. This migration to Polygon, an Ethereum layer 2 solution will help the platform users pay lower transaction fees when buying NFTs on the Aavegotchi store or staking their tokens. This action alone caused a spike in the platform’s usage as the community became more active due to the lower transaction costs.
There was also growing optimism around the platform’s mainnet launch scheduled for March 2 as the community excitement hit pitch fever. Therefore, the subsequent successful launch provided the perfect climax for this anticipation hence triggering a massive price surge. Add, the completion of the NFT token sale within seconds and you get the recipe for huge price movement. The investors will keep hoping that the token’s rise is sustainable in the long term so that they can get meaningful returns.
Image courtesy of pixabay
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