AVAX Crypto Sees Sizable Gains as Avalanche Adopts Anchor Protocol

Today’s crypto movement is a welcome change for digital currency investors. Coins and tokens are trending into the green market-wide, making for one of the most positive days for the industry in weeks. However, one coin is standing out far above the rest in Avalanche (AVAX-USD). The layer-1 AVAX crypto is trending above all other major altcoins this morning.

Avalanche (AVAX-USD) crypto coins on a black background
Source: Skorzewiak / Shutterstock

Avalanche has been running at full speed for a while now. The network mounted one of the biggest upward runs of 2021, bringing in hundreds of new decentralized apps (dapps) in a matter of months. Moreover, it has seen a boom in terms of market capitalization; as it stands today, AVAX boasts a market capitalization of $21 billion.

This week is marking a change of pace for cryptocurrency prices from the preceding weeks. A bullish run is putting cryptos like Bitcoin (BTC-USD) in the green, even in the midst of the Federal Reserve raising interest rates. However, the AVAX crypto is moving with a fervor unmatched by other altcoins; the coin is up 14% this morning while similarly sized peers see gains of just 4% to 5%.

AVAX Crypto Gains Come Amid Flood of Trading, Anchor Protocol Adoption

So, what’s driving the AVAX crypto on its impressive run this morning? It looks like the layer-1’s newest stablecoin partner is helping to drive up the coin.

In 2022, Avalanche has been trying to bring in TerraUSD (UST-USD) as the main stablecoin on its network. Through the Avalanche Rush program, it is trying to incentivize dapp developers on Avalanche to utilize UST over other stablecoins. In February, the network saw one of its biggest decentralized exchanges (dexs), Pangolin, make UST its default stablecoin.

And now, the network continues to bulk up its relationship with UST through Anchor Protocol (ANC-USD). Anchor is a DeFi platform in the Terra ecosystem, where users can stake UST for a 20% annual percentage yield (APY). It is one of the most popular DeFi staking platforms on the market, thanks to its high yield and reliability. But where before, Anchor was relegated only to Terra users, it is now beefing up its interoperability by allowing Avalanche users to tap into the platform.

Indeed, now, Avalanche users can stake their UST in the Anchor Protocol without having to take their funds off-chain. This is huge news for Avalanche, making it the first non-Terra chain to offer the high percentage, low volatility yields that Anchor provides.

As this news continues to make its way around the web, the AVAX crypto has been on fire. The coin is seeing a 14% gain this afternoon; trading volume is also soaring, with $1.9 billion in AVAX swapping hands — a 90% increase on yesterday’s volume.

On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Brenden Rearick is a Financial News Writer for InvestorPlace’s Today’s Market team. He mainly covers digital assets and tech stocks, with a focus on crypto regulation and DeFi.

Article printed from InvestorPlace Media, https://investorplace.com/2022/03/avax-crypto-sees-sizable-gains-as-avalanche-adopts-anchor-protocol/.

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