Terra (Luna) ecosystem’s acquisition of $200 million worth of Avalanche (AVAX) created a bullish sentiment in the AVAX price. According to analysts, this development can create a trend in the price and push the price up to $100.
Avalanche (AVAX) Price May Rise!
Terraform Labs (TFL) and Luna Foundation Guard (LFG), the two organizations behind Terra, announced that it has purchased Avalanche (AVAX) worth $200 million. The company that developed the Terra blockchain (TFL) traded $100 million of LUNA for AVAX.
Terra continues to work to align the ecosystem’s incentives with the focus of the algorithmic stablecoin. The company that wants to expand the work, Avalanche (AVAX) chose to buy. LFG has made an additional $100 million acquisition for the Avalanche Foundation.
Terraform Labs CEO Do Kwon recently announced Terra’s plans to protect Bitcoin reserves to strengthen the stability of the stablecoin’s blockchain. Kwon added to his Twitter followers that with hundreds of apps containing DeFi and games, Avalanche is one of the most trafficked Tier-1.
Avalanche seems like the best choice for Terra in terms of scaling through Web3 chains in its subnets.
3AC co-founder Su Zhu explained that the bullish sentiment is getting stronger in Avalanche (AVAX), Solana and Polkadot. Zhu believes it is ideal to buy AVAX from the bottom and expects the altcoin to be bullish.
Avalanche priceAnalysts, who evaluate the market, think that the $ 100 target is possible. @TrendRiderTR A bounce was seen on the Avalanche price chart after a possible reversal signal, according to analysts. Facing a critical resistance at $89, AVAX will move towards the target of $95 and $100 respectively if it can break this level.
$AVAX 4hour timeframe update.
Nice bounce after “Potential Reversal” signal confirmation, now facing the most important resistance on this timeframe. pic.twitter.com/3yRa5O1sn7
— Trend Rider (@TrendRidersTR) April 7, 2022
Although the Terra ecosystem’s preference for the rival blockchain Avalanche over Ethereum is a surprising move, the features and speed offered by the network seem to have had an impact. The moves made by Terra continue to shape the crypto money markets, especially Bitcoin, lately.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.