While Ethereum and Bitcoin are falling, Avalanche is currently taking off. An upgrade expected shortly to make the AVAX blockchain even more effective could be responsible for this.
At the end of July, the Avalanche development team fundamentally revised the existing Ethereum-AVAX bridge. From an article on Medium, Avalanche announced that the new version of the ETH-AVAX bridge should be five times cheaper than its predecessor.
This seems to have convinced some users and investors. Since the announcement, AVAX has grown massively. On a monthly basis, the Ethereum competitor was even able to gain more than 121 percent.
At the same time, the capital in the smart contract of AVAX-DeFi protocols could develop positively. Within the last 30 days, the Total Value Locked rose from 152 million to just under 260 million US dollars – a growth of over 70 percent. During the same period, AVAX more than doubled from $ 10.19 to $ 23.58 at press time.
Apricot phase three in a few days on the mainnet
But not only the upgrade of the ETH-AVAX bridge should have spurred the cryptocurrency in the past few weeks. In particular, the implementation of Apricot Phase Three (AP3), which is expected to take place on August 24th, is currently causing euphoria in the AVAX community.
With the help of a new algorithm (“Moderato”), AP3 introduces dynamic charges that are intended to stabilize Avalanche’s network utilization around a set level in the long term. When the network is operating above the target load, it increases the minimum fee that users must pay in order for their transactions to be included in a block. If the network is operating below the target load, the minimum charge will decrease.
Overall, this mechanism is intended to help stabilize transaction costs in the avalanche network and make the network significantly more effective than before. It is also intended to ensure that AVAX continues to be compatible with the Ethereum Virtual Machine (EVM) after the EIP-1559.
New Avalanche DEX wants to trump with ease of use
Decentralized Finance (DeFi) is growing on Avalanche and a project that has recently started on Avalanche is the decentralized exchange (DEX) Dexalot. DEX aims to be a user-friendly exchange that is as easy to use as a centralized exchange. For example, Dexalot also wants to offer traders the option of placing limit orders via its DEX.
In a first test phase, which took place on August 6th, states Dexalotthat over 1,000 wallets have already interacted with the DEX in a single day. In addition, traders have already processed over 44,000 transactions with a total value of 1.17 million US dollars via Dexalot during this first test phase. At the moment the AVAX-DEX only supports three different trading pairs – including AVAX / BTC, AVAX / USDT and LINK / BUSD.
It is not yet known when exactly the DEX will exit its test phase and which trading pairs will be integrated next.