What happened
One of the best-performing cryptocurrencies of late has been Avalanche (AVAX +2.25%). This top token appreciated 28.4% at its weekly high, compared with last Friday's close. As of 9 a.m. ET today, this gain currently sits at 24.6%, meaning Avalanche has remained near its weekly highs during the latter part of this week.
These gains appear to be tied to two key news items this week. First, it announced it would be adding USD Coin (USDC +0.00%) to its network, a move Avalanche hopes will give this platform an upper hand in the decentralized finance (DeFi) market share race. Additionally, a bullish analyst note from Bank of America's Alkesh Shah a week ago notes that Avalanche could become a viable competitor to Ethereum in the longer run.
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So what
These are certainly some very bullish catalysts investors are taking into consideration. Indeed, there are a number of tokens that are vying for "Ethereum-killer" status. The fact that Avalanche has been pointed out as a potential winner in this race by a very credible analyst is noteworthy.
As the race for DeFi market share heats up, Avalanche's scalability, low cost, and faster settlement times make this blockchain network one to keep an eye on. Among the key factors that make Avalanche unique is this network's use of three interoperable blockchains that provide said scalability. As transaction volumes pick up, those blockchains with the ability to not only handle transactions in a secure way but also do so in a low-cost and expeditious fashion are likely to come out ahead.
Now what
The fact that Avalanche is getting so much mainstream attention right now suggests investors are looking past tokens like Ethereum to cryptocurrencies tied to next-generation networks that are more efficient and growing faster. Avalanche appears to meet these criteria.
Developer interest in the Avalanche ecosystem continues to pick up, with a growing number of projects picking up steam on this network. As more utility is delivered to end users via the Avalanche ecosystem, investors may rightly continue to single out Avalanche as a cryptocurrency to own for the long haul.
That said, there are a number of high-profile Ethereum killers all vying for the same market share right now. Picking a winner among these platforms is easier said than done. Accordingly, those interested in Avalanche for its ability to deliver value to developers and end users may want to think about Avalanche as part of a diversified portfolio along with other contenders right now.
