A new agreement concluded by Avalanche with the consulting firm Deloitte probably helped to spark new interest in the currency and its underlying technology.
On Sunday, the price of the Avalanche ($AVAX) – reached a historic high of $144.96, making Avalanche one of the ten most valuable cryptocurrencies in the world with a peak market capitalization of $31.5 billion.
The new record came as a culmination of a rapid rise that has doubled the value of the currency in the last month and is up more than 3,000% from a year ago.
As of Monday, the price of Avalanche had fallen about 7%, but remains the tenth most valuable cryptocurrency right ahead of Dogecoin with a market capitalization of $29.8 billion, according to CoinGecko.
Last week, Deloitte announced that it would partner with Ava Labs – the company that developed Avalanche and released the currency in September 2020 – to use Avalanche’s blockchain to support Deloitte’s work with the U.S. Federal Emergency Management Agency (FEMA).
Avalanche raised over $230 million in September from investors such as U.S.-based venture capital firm Polychain and hedge fund Three Arrows Capital from Singapore and launched its own $220 million fund called Blizzard to support projects on the Avalanche platform.
Avalanche calls itself “the fastest smart procurement platform in the blockchain industry.” Smart contracts are a blockchain-based technology that allows buyers and sellers to automatically enter the terms of an agreement into contracts executed on their own.
Ethereum was the first smart contracting platform for cryptocurrencies. Its cryptocurrency is currently the second most valuable cryptocurrency in the world after Bitcoin with a valuation of nearly $500 billion.
However, the recent rise of Avalanche has convinced some investors that competitors pose significant challenges to Ethereum’s dominance.
However, some users have pointed out that recent upgrades to Ethereum’s technology – Ethereum 2.0 is expected to be fully released by next year – will improve the user experience and make it harder for smaller competitors to keep up.