Avalanche rose strongly again earlier today. The 12th largest digital currency by market capitalization posted a new all time high of around $110 just hours ago before scaling back to around $100 at press time. This is a very unusually bullish performance even as much of the coin market including Bitcoin remains trapped by short-term bearish action.
The layer-one blockchain platform Avalanche saw another big uptick earlier today as the index looked to continue its upward trajectory. The index started at $104 and steadily posted a rise over the next few hours. By 3:45 AM, a new all time high of $110 was posted by the cryptocurrency. However, over the next hours till press time, the trend was largely downward and it is closing at $100, a little low from the starting point earlier today.
But still, AVAX performed much better than the rest of the crypto field that posted losses anywhere between -3% and -11% over the last 24 hours. Bitcoin itself dropped to its 1 month low of $56.9k and ended the day at an uneasy $58k. Ethereum and the rest of the altcoin market also endured similar fates.
The news regarding AVAX’s partnership with big accounting firm Deloitte played a part in the price action. However, even before the announcement, the cryptocurrency has been doing great for the past few months, rising above much fancied other cryptocurrencies to post new all time highs for fun. Its price has risen more than 2 times during the last 3 months and over 12 times during the last year or so.
According to one analyst on Twitter:
Probably nothing, only Deloitte, the largest accounting firm in the world that provides services to nearly 90% of the Fortune 500 choosing Avalanche for a federally approved disaster recovery platform to help state and local governments with federal emergency funding!$AVAX https://t.co/GHzIWuSjfx
— Seq (@CryptoSeq) November 16, 2021
This big price appreciation was in part because of its fascinating progress and also because of big partnerships the crypto company signed over this time. Now it has Deloitte on board which will advise it on different matters.
However, as independent analysts, we need to advise users to be careful here. Crypto coins like AVAX come and go out of fashion very quickly and their partnerships, often blown out of proportion also disappear with them. So, they need to be extremely careful about coins like AVAX and only invest what they can afford to loose in the near future.
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