Why Avalanche Is Crushing the Crypto Market – Motley Fool

Why Avalanche Is Crushing the Crypto Market – Motley Fool

What happened

It’s been a rough week of trading for most top cryptocurrencies, but Avalanche‘s (CRYPTO:AVAX) AVAX token is bucking the trends and posting strong gains. As of 3 p.m. Friday, EDT, the token was up roughly 13% since last Friday.

Avalanche Price Chart

Avalanche Price data by YCharts

Meanwhile, Bitcoin, Ethereum, Dogecoin, and Cardano were down roughly 10.3%, 14.5%, 13.8%, and 4%, respectively, across the same stretch. Avalanche’s AVAX token still seems to be riding high from news of a major private investment in Avalanche that was announced last week. 

A piggy bank.

Image source: Getty Images.

So what

Concerns that a looming default for real estate giant China Evergrande would have a spillover impact on the cryptocurrency market sent leading tokens tumbling earlier in the week. Investors got another scare on Friday after China announced what effectively amounts to a cryptocurrency trading ban. The country’s government has cracked down on crypto trading, mining, and lending in the past, but this appears to be the most drastic action thus far. 

Yet these developments didn’t seem to faze investors much coming on the heels of news last week that Avalanche had secured $230 million in