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The cryptocurrency has soared on the avalanche in the past several days, briefly reaching the top ten by market capitalization and overtaking Dogecoin and Shiba Inu, after a deal to improve disaster relief financing in the United States.
Avalanche’s token, AVAX, hit a record high of $144.96 Sunday before paring some gains, according to CoinGecko pricing, and is now ranked 11th in the market capitalization rankings at around $29 billion — between the Dogecoin and Shiba Inu memecoins. It rose after creator Ava Labs last week announced a partnership with Deloitte to build more efficient platforms for disaster relief.
“It’s yet another example of faster and cheaper Ethereum competitors doing a good job,” Jonathan Cheesman, head of institutional and over-the-counter sales at crypto derivatives exchange FTX, said in an email Sunday, citing the Deloitte deal. “There is a huge influence of wealth and a lot of opportunistic and mobile capital.”
The Close As You Go platform is leveraging the Avalanche blockchain to improve the security, speed and accuracy of Federal Emergency Management Agency funding, according to a post from Ava Labs, and will help state and local government officials streamline and streamline disaster compensation applications.
The avalanche doubled in the past 30 days and increased more than 3,000% over the year. At the same time, cryptocurrencies can be remarkably volatile, and even those that reach the highest level of market capitalization can have significant ups and downs. For example, Cardano’s ADA token is down more than 40% from its early September record, and Polkadot’s DOT is down 25% from a multi-week high.
The Avalanche Foundation said in September that it had raised $230 million from a private sale of tokens, with participants including Polychain and Three Arrows Capital — who also backed Blizzard’s more than $200 million fund announced several weeks ago to boost development in Avalanche.
“It’s about utility, both for native encryption technology and traditional cross-over technology,” John Wu, president of Ava Labs, said in a message on Sunday.
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