It’s been a tough week of trading for most of the top cryptocurrencies, however avalanche‘S (CRYPTO: AVAX) The AVAX token is bucking the trends and making strong gains. On Friday, 3:00 p.m. EDT, the token was up about 13% since last Friday.
In the meantime, Bitcoin, ether, Dogecoin, and Cardano declined by around 10.3%, 14.5%, 13.8% and 4%, respectively, over the same period. Avalanche’s AVAX token still appears to be soaring after a large private investment in Avalanche was announced last week.
Concerns that an impending default on payment for the real estate giant China Evergrande would have a spillover effect on the cryptocurrency market that would result in a collapse in tokens earlier this week. Investors got another scare on Friday after China announced what effectively amounts to a cryptocurrency trading ban. The country’s government has cracked down on crypto trading, mining, and lending in the past, but this appears to be the most drastic measure yet.
These developments didn’t seem very worried, however, who came last week after news that Avalanche had secured $ 230 million in funding through the sale of its AVAX tokens. The private investment was spearheaded by Polychain and Three Arrows Capital and represented a huge vote of confidence in the Avalanche blockchain that led some crypto analysts to raise their price targets for the token significantly.
AVAX has proven to be remarkably resilient despite pressure related to China Evergrande’s default situation and comments from Chinese regulators proposing a ban on crypto trading in the country. This resilience and substantial private investment are positive signs; They suggest that there is real excitement building around the Avalanche blockchain and its token.
Avalanche offers a blockchain platform for building and running decentralized apps and is emerging as a competitor to Ethereum and other blockchain platforms that offer similar functionality. There’s still a lot of risk on the table for crypto investors, but AVAX’s ability to turn a profit in an otherwise turbulent week is remarkable.
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