The latest broadcast revealed Avalanche (AVAX) joining the Metaverse craze via a $290M incentive program. The announcement unveils the plans by Avalanche to delve into its upcoming growth phase to remain competitive while advancing as a network.
An Incoming Metaverse
Avalanche cemented its spot within the leading blockchain platform following its robust growth over the previous two years. The latest declaration about venturing into the metaverse reflects its plans to keep the massive growth trajectory. Recently, the blockchain network declared an incentive program that involves spending about $290 million to build the Avalanche Multiverse.
The announcement confirmed subnets would be a vital area of focus to achieve the goal of a scalable blockchain that boosts app development. The subnets will ensure a smooth and efficient way for institutions’ on-chain migration while helping them experience the decentralized finance (DeFi) protocol.
Aave chief Stani Kulechov stated that Avalanche subnets ensure a lucrative atmosphere for on-chain migration by institutions, enabling a first-hand DeFi experience for users.
Meanwhile, Avalanche plans to incorporate the Know Your Customer (KYC) policy on the subnets. That’s a crucial move towards ensuring improving institutional adoption. Remember, the market perceives these facets as the leading growth catalyst within the cryptocurrency industry. Thus, the announcement reflects Avalanche’s dedication to being an ideal platform.
Impact of Avalanche Multiverse on AVAX Value
The announcement revealed $15 million worth of incentives for AVAX. Nevertheless, it didn’t detail how the move would impact AVAX’s value. However, subnet development translates to increased ecosystem utility and Avalanche token value. That will likely lead to better AVAX utility, therefore enhanced long-term growth.
The latest bearish conditions in the crypto market deteriorated Avalanche. AVAX traded around $52.19 after dropping 7.08% within the past 24 hours and stayed 10.39% down over the previous seven days. Also, Avalanche lost approximately 49% from its April high.
For now, AVAX hovers beyond the oversold region by the Relative Strength Index and could be ready for upsides. The RSI records a higher low while the price pattern registers a lower low. It also shows signals of bearish faintness according to the Money Flow Index (MFI).
The latest announcement means Avalanche will boast multiple development activities in the upcoming months. Moreover, the development activity index has seen a significant surge since early this month. Its market capitalization currently hovers at the lowest point in four weeks.
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