The price of AVAX has gone up to a new level this month which proved that the downtrend of altcoin is finally over. However, a decrease in the activity of the network can impact the present rally. The price of Avalanche (AVAX) started rising and ended up by 43.8% from 14th March to 31st March to a daily close of $97.50 a rate which has been the highest since 5th January.
Subnet Of AVAX Propels The Current Price Rally
A PoS model is utilized by the scaling solution of layer-1 and has collected approximately $9 billion in TVL which are deposited on the smart contracts of the network. There are few analysts who connect the rally to the incentive program of Avalanche to hasten the acceptance of subnets which was declared on 9th March.
As per the AVAX foundation, only the functions that are possible and feasible are with open experimentation and control of network-level in the case of subnets. The mentioned program will provide a maximum of 4 million AVAX which is worth approximately $340 million, which is used for the funding of DApps that are focused on NFTs, gaming, and DApps.
The managing director of Defi at Valkyrie Investment, Wes Cowan, stated that the subnet of AVAX with the infrastructure of KYC will seem like a huge step that is working for the adoption of the institution. Though the good news of a recent rise in price is circulating, still it’s lower than its high-ranked price i.e. $147 and it is a fact that the token of AVAX is valued at $26.3 billion market capitalization.
In case of comparison, the market capitalization of LUNA is currently at $38.1 billion, and of SOL is $43.8 billion. Avalanche is known to be compatible with EVM and was not affected negatively after network congestion and transaction fees.