Avalanche (AVAX/USD) is emerging to be a major competitor of the Ethereum blockchain. With Ethereum (ETH/USD) battling with high gas fees, blockchains that offer lower fees and high transaction speeds have emerged to become preferable options by investors and developers.
Avalanche has been on a bullish rally since September. The gains recorded in this time have not only been caused by the rising value of AVAX tokens but also exhibited in the rising total value locked (TVL) on the Avalanche blockchain.
Avalanche is now a top-10 crypto
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Data from CoinMarketCap shows that AVAX is now the tenth-largest cryptocurrency with a market capitalization of over $28 billion. Currently, the altcoin is trading at $127, after a slight slump caused by dips across the broader market. During the past 24 hours, it had reached an all-time high of $144.
As aforementioned, the gains made by AVX in recent months come as the gas fees on Ethereum become unbearable. The network charges gas fees of as high as $100. This is significantly high compared to Avalanche and Solana, which charge around $0.89 and $0.01, respectively.
Avalanche supports smart contracts just like Ethereum. Data from DeFi Llama shows that the TVL of the network stands at over$12.5 billion, which is a notable gain compared to the around $900 million reported in August.
Three Arrows Capital migrates from Ethereum
The gains made by Avalanche come as the CEO of Three Arrows Capital, a crypto hedge fund based in Singapore, announced that he would leave Ethereum despite being a supporter of the blockchain in the past.
Three Arrows is one of the greatest investors on Avalanche. In September, the firm teamed up with other venture capital firms, including Polychain Capital, to raise $230 million in a funding round.
In a tweet, Zhu Su stated that “Yes I have abandoned Ethereum despite supporting it in the past. Yes, Ethereum has abandoned its users despite supporting them in the past.” He also stated that the current token burning on the platform was not working to the benefit of new users. Three Arrows Capital has already moved $78 million worth of to the FTX exchange.
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