A new research report released by Bank of America has praised the smart contract platform Avalanche. The report claimed that the platform’s ability to remain decentralized and secure while scaling makes it a worthy alternative to Ethereum for Defi, gaming, and NFT projects.
Bank of America Praises Avalanche
The bank said that the Avalanche subnet had seen more adoption in recent months, with more than 380 projects now built on the platform.
In the note published on December 10, the bank further stated that subnet offers faster settlement time and lower costs than other blockchains with a processing speed of 4,500 transactions per second.
Following the prayer from BofA, the price of Avalanche governance token, AVAX, has seen over a 12% increase in value within the past 24 hours.
The token worth around $91.1 yesterday is now over $104, representing a massive jump in its value. This is still below its ATH of $146.22, but this spike might mean the end of its pullback that started earlier this month. The token has now entered the top 10 Cryptocurrencies by market cap after its recent spike.
Avalanche is Enjoying Wider Adoption
According to Bank of America’s analysts, the growing adoption of Avalanche by DeFi projects is evidenced by the 21% month-on-month rise in total value locked in DeFi protocols on the blockchain, a 6,255% spike since August. Corporations are also using the platform.
BofA cites Deloitte’s decision to build its Close as You Go (CAYG) disaster-relief platform on Avalanche as a good example of corporations using blockchain technology to lower costs and increase efficiencies.
While Avalanche is suggested as an alternative Ethereum for decentralized applications, it won’t be the first blockchain to get that appellation.
Ethereum itself has witnessed a positive price movement in the past 24 hours. The second most valuable cryptocurrency saw an almost 4% spike in price as it climbed back to $4000 after it dropped about two days ago.