Avalanche’s AVAX price is rising at a time when its peers are on a week’s long dip. Avalanche made a sudden surge and hit a daily high of $90.05 before pulling back to around $87.77 at the time of writing.
AVAX is still trading in the green with a 1.67% gain in the last 24 hours.
So, what are the factors behind the current Avalanche price surge? This article delves into explaining the behind-the-scenes causing the price of AVAX to rise when a majority of coins including Bitcoin, and Ethereum are in the red.
Why is Avalanche price ricing?
The reason for today’s Avalanche price surge is Terra Luna Foundation's announcement that it has added Avalanche (AVAX) to its UST Reserve. Terra went ahead and bought AVAX coins worth $100 million.
The move made Avalanche the second larger 1 solution digital asset to be added to the UST Reserve with the first being Bitcoin.
Terra Luna Foundation made the revelation through a Tweet stating:
2/ The @LFG_org’s OTC deal to add $100 million of $AVAX to the $UST Reserve makes AVAX the first major crypto-asset besides $BTC to be added to the UST Reserve, marking the beginning of a diversified and non-correlated asset pool supporting the $UST peg.
— Terra (UST) 🌍 Powered by LUNA 🌕 (@terra_money) April 7, 2022
Besides, adding Avalanche to its UST Reserve and buying AVAX coins, Terra has also partnered with Avalanche to develop a new gaming subnet using Avalanches subnets. Terra Luna Foundation bypassed Ethereum to choose Avalanche since they believe Avalanche is experiencing rapid growth and it has a wide fan base.
Don Kwon, who is the founder of Terra
