Avalanche (AVAX) is bouncing back today and is up 21.48% in the past 24 hours to stand at about $ 106.84.
Today’s AVAX price rally appears to be picking up steam towards the December 1st high of $ 127.
The upward trend is supported both by the movement of the Moving Average Convergence Divergence (MACD) above the zero line and by the price above the Moving Average (MA).
But what is causing today’s AVAX rally? Why is the coin moving up?
Here is a detailed outlook on the events that led to the avalanche rally.
Circle USDC launch on Avalanche
Today’s AVAX price rally is largely attributed to the announcement that Circles USD Coin (USDC) will be sponsored by Avalanche.
Circle, a global online financial company that provides online payments and the business financial infrastructure for online transactions, to roll out USDC on Avalanche aims to promote more decentralized applications (DApps) on Avalanche.
The announcement was made by the founder and CEO of Ava Labs Emin Gün Sirer via a tweet.
The native integration of $ USDC into #Avalanche marks another important milestone in the maturation of the platform and the usefulness of stablecoins. https://t.co/wOiNdQAuAI
– Emin Gün Sirer🔺 (@ el33th4xor) December 14, 2021
The introduction of Circles USDC on Avalanche underscores the avalanche’s drive for diversity in order to have a stake in the DeFi ecosystem. The introduction of USDC came after Avalanche announced support for Tether’s stablecoin USDT in November.
USDC has become a force among stablecoins as it emerges as a major competitor to Tether (USDT), one of the most widely used stablecoins in the crypto space. USDC currently makes up about a third of the total stablecoin supply in the crypto space.
Analysts believe USD-backed stablecoins could increase on-chain activity on the Avalanche network and force DApps to build projects on the network.
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