Avalanche

LTC, AVAX, APT and FTM prepare to rally as Bitcoin price targets $24K

Bitcoin bulls look to push BTC price to $24,000 and in doing so, LTC, AVAX, APT and FTM could extend their monthly gains.

Bitcoin (BTC) has rallied nearly 40% so far in January, which is the best start to the year since 2013. The sharp up-move has turned several on-chain signals bullish, according to on-chain analyst Cole Garner.

Usually, a sharp recovery from the market lows, driven by the leader, is a sign that strong hands may be buying aggressively. That could be because traders believe the selling may have been overdone in the near term or they found the valuation to be attractive.

Crypto market data daily view. Source: Coin360

After the initial runup, a swift correction could be expected, which will shake out the weak hands. The next fall will also confirm whether Bitcoin has formed a bottom or not. If the low is confirmed, several altcoins may start to outperform Bitcoin in the near term.

Which altcoins are showing promise in the near term? Let’s study the charts of Bitcoin and select altcoins to see which could extend their up-move in the next few days.

BTC/USDT

Bitcoin has been trading above $22,800 since Jan. 25, which suggests that bulls are trying to flip the level into support.

BTC/USDT daily chart. Source: TradingView

The upsloping 20-day exponential moving average ($21,558) indicates that bulls are in command but the relative strength index (RSI) in the overbought territory suggests that the rally may be overextended in the near term.

If buyers kick the price above $23,816, the BTC/USDT pair could start its northward march toward $25,211. This level may act as a formidable resistance.

On the downside, the 20-day EMA is an important level for the bulls to defend because if it cracks, the pair may fall to the psychological support at $20,000.

BTC/USDT 4-hour chart. Source: TradingView

The RSI on the four-hour chart is forming a negative divergence indicating that the buyers may be losing their grip. If bulls want to assert their dominance, they will have to push the price above the $23,816 resistance. That could start the next leg of the up-move.

Conversely, if the price turns down from the overhead resistance, the bears will try to yank the pair below the moving averages. There is a minor support at $22,715 but if this level collapses, the pair could retest $21,480.

LTC/USDT

Litecoin (LTC) has been in a strong uptrend for the past several days. After a brief consolidation, buyers propelled the price above the overhead resistance of $92, indicating that the up-move remains intact.

LTC/USDT daily chart. Source: TradingView

The LTC/USDT pair could rally to the psychological level of $100 where the bears may again try to erect a roadblock. If bulls do not give up much ground from this level, the pair may extend its journey to $107. The upsloping 20-day EMA ($86) and the RSI near the overbought territory indicate advantage to buyers.

This positive view could invalidate if the price turns down and slips below the 20-day EMA. The pair could then drop to $81 and later to $75.

LTC/USDT 4-hour chart. Source: TradingView

The break and close above the $92 level suggest that the consolidation resolved in favor of the buyers. If bulls sustain the price above $92, the pair could rise toward the pattern target of $98.

The bears are likely to have other plans. They will try to drag the price below the breakout level of $92 and trap the aggressive bulls. If they manage to do that, the pair could fall to $86. This is an important level for the bulls to defend because a break below it could shift the advantage in favor of the bears.

AVAX/USDT

Avalanche (AVAX) surged above the resistance line on Jan. 27 and reached the overhead barrier at $22 on Jan. 28.

AVAX/USDT daily chart. Source: TradingView

The bears are trying to stall the recovery at $22 but the bulls do not seem to be in a hurry to book profits. This increases the likelihood of a break above the overhead hurdle. If that happens, the AVAX/USDT pair could accelerate toward $30. There is a minor resistance at $24 but it is likely to be scaled.

Another possibility is that the price turns down and retests the resistance line. If the price rebounds off this level, it will suggest that the bulls have flipped it into support. That could enhance the prospects of a break above $22. The bears may gain the upper hand if the price dives below the 20-day EMA ($17).

AVAX/USDT 4-hour chart. Source: TradingView

The four-hour chart shows the pair has pulled back near the 20-dayEMA. If the price jumps from the current level, the bulls will again attempt to thrust the pair above the overhead obstacle at $22. If this level is scaled, the pair could rally to $24.

The first sign of weakness will be a break and close below the 20-EMA. That could present an opportunity for the bears to make a comeback. The sellers could gain the upper hand if they pull and sustain the pair below the resistance line.

Related: South Korea to deploy cryptocurrency tracking system in 2023

APT/USDT

Aptos (APT) has been having a dream run in the past few days. Usually, when an asset picks up momentum, it continues to move in the same direction for some time.

APT/USDT daily chart. Source: TradingView

The APT/USDT pair turned down from $20.40 on Jan. 26 but the bulls are trying to arrest the pullback at $16.62. The shallow correction shows that every minor dip is being purchased by the bulls. Buyers will try to drive the price above $20.40 and start the next leg of the uptrend. The pair could then soar to $24.

The risk to this assumption is that the RSI has been in the overbought territory for the past few days. This increases the risk of a short-term correction. If the price turns down and plummets below $16.60, the pair could slide to $14.57 and then to the 20-day EMA ($12.23).

APT/USDT 4-hour chart. Source: TradingView

The four-hour chart shows a negative divergence forming on the RSI. If the price breaks below the 20-EMA, the pair could test the 50-SMA. This is an important support to monitor because if it cracks, the pair could fall to $12.

Contrarily, if the price turns up and breaks above $20.40, it will indicate that bulls have reasserted their supremacy. That may invalidate the negative divergence developing on the RSI and resume the uptrend.

FTM/USDT

Fantom (FTM) has been in a stupendous run since breaking above the downtrend line. The sharp rally of the past few days suggests aggressive buying by the bulls.

FTM/USDT daily chart. Source: TradingView

The indicators signal that bulls are firmly in control. During strong up-moves, the corrections are short-lived as bulls buy on every minor dip. The bears are trying to stall the up-move near the psychological resistance at $0.50 but if bulls pierce this level, the FTM/USDT pair could soar to $0.56 and then to $0.63.

Sometimes, vertical rallies are followed by sharp declines. Therefore, traders must be careful as a break and close below $0.43 could sink the pair to the 20-day EMA ($0.37). This is the key level to watch out for on the downside because a break below it could signal that the uptrend may have ended in the near term.

FTM/USDT 4-hour chart. Source: TradingView

The pair turned down from the overhead resistance at $0.50 but found support at the 20-EMA. This indicates that the sentiment remains positive and traders are buying the dips. The bulls will again attempt to clear the overhead hurdle at $0.50 and resume the up-move.

The bears may have other plans as they will try to pull the price below the 20-EMA. This is an important level to keep an eye on in the short term as a break below it could open the doors for a possible drop to the 50-day simple moving average. If this level also cracks, the next stop could be $0.36.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Data suggests Avalanche’s (AVAX) rally was a buy the rumor, sell the news event

AVAX price rallied after announcing news of an Amazon cloud integration, but does the news do anything to improve Avalanche’s fundamentals?

Avalanche (AVAX) came into the spotlight early at the beginning of 2023 by adding its blockchain support to Amazon Web Services (AWS) cloud. However, empirical and on-chain analysis suggests that Avalanche’s price surge is likely due to a broader cryptocurrency market pump which will likely end with the rest of the market.

Is Avalanche’s Amazon news exaggerated?

While integration with the world’s largest blockchain service is a positive step for Avalanche, the hype around its implications might be exaggerated. The evidence lies in a similar move that Avalanche’s team made in December 2022.

Avalanche’s team established a deal with Alibaba’s Cloud toward the end of 2022. The Asia-based cloud service commands a 6% share of the sector globally. Nevertheless, the blockchain’s validator count has remained consistent, implying that not many users of Alibaba Cloud are willing to run an Avalanche node.

Avalanche validator count. Source: Avax.network

AWS earns revenue from users willing to use blockchain nodes, which is probably why it keeps adding support for various blockchains. Amazon has supported an Ethereum node since May 2021. The recent Amazon partnership announcement might mislead some investors.

Avalanche’s ecosystem development

Avalanche’s blockchain usage data is also not encouraging. The gas used on the blockchain subsided steeply after the May 2021 crypto market crash and it hasn’t recovered since. The total value locked in Avalanche’s DeFi ecosystem is near two-year lows of $885 million, ranking sixth in comparative liquidity of other chains.

Gas used on Avalanche C-chain and DeFi Kingdoms subnet. Source: Avax.network

The project has found some success with gaming subnets like DeFi Kingdoms and Swimmer Network. While the growth of subnets enhance Avalanche’s ecosystem, it doesn’t bring direct value to AVAX holders because the security and tokenomics of subnets can be independent of the primary Avalanche blockchain.

Avalanche validators only benefit from the subnets when they rent security from Avalanche validators or use the mainnet in the initial phases to bootstrap their project before moving to independent chains. A few promising gaming projects like Shrapnel and Ascenders are working toward this goal. Nevertheless, it remains to be seen if they will bring enough activity and revenue to Avalanche validators.

AVAX exchange flow data and technical analysis

Avalanche’s recent price rally is primarily driven by a liquidation hunt of short orders in the futures market. Coinglass data shows that the funding rate for Avalanche perpetual swaps remained negative since the FTX implosion in November. The crowded short positions allowed whale buyers to run seller’s stops.

The funding rates recovered to the neutral territory after last week’s price surge. It effectively emptied the fuel which was causing the current bull run.

Avalanche perpetual swap funding rate. Source: Coinglass

“Smart money” wallets identified by Nansen deposited AVAX worth $2.3 million during that period. Additionally, venture funds and market makers, including Jump Capital, Wintermute Trading and Longling added $1.3 million to the net inflow. The total inflow of AVAX to exchanges over the second week of January 2023 was $8.025 million.

As Avalanche’s price gained 40% in the second week of 2023, the exchange flow data recorded considerable inflows, probably as investors moved to sell, raising caution flags for buyers.

AVAX inflow and outflow from crypto exchanges. Source: Nansen

Technically, breakout above the 50-day exponential moving average (EMA) at $13.40 keeps alive the possibility of tagging the 100-day EMA at $20.70 and August 2022 peak of $31.45. However, the time for buyers to show their hands is running out quickly.

The Moving Average Convergence Divergence (MACD) indicator shows early signs of topping out, with buying volumes taking a dive.

AVAX/USD daily price chart. Source: TradingView

In the AVAX/BTC pair, the move encountered resistance from the support and resistance level of 0.000834 BTC, which is also where the 100-day EMA currently lies. If buyers fail to conquer this level, a drop toward 0.000642 BTC is expected, with a chance of reaching 0.000465 BTC.

AVAX/BTC daily price chart. Source: TradingView

Moreover, the broader altcoin market capitalization (excluding Bitcoin) has already tapped its bullish targets around its 100-day MA at $563 million. If the positive momentum starts to cool off across the niche market, AVAX uptrend will likely reverse with it.

Generally, Avalanche’s usage statistics have remained unchanged since the last quarter of 2022. There is little to attribute to the recent price rally to fundamental growth. The project has the potential to grow in the future, benefiting from the blockchain gaming space.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ava Labs and Amazon’s partnership could ‘expand the pie’ for blockchain

The collaboration will allow both individuals and institutions to launch subnets that can operate as self-sufficient blockchain systems.

The Amazon Web Services (AWS)-Avalanche “cooperation,” as it was carefully described last week, should almost immediately make it easy for developers to establish nodes on the Avalanche blockchain, including via “one-click node deployment.” 

Eventually, too, it might make it simpler for everyday businesses — i.e., non-crypto-related enterprises — and even individuals to establish their own subnets like smaller, private, layer-2 blockchains.

But perhaps the outstanding message from the Jan. 11 announcement is that the blockchain revolution isn’t just about cryptocurrencies. It’s also about things as prosaic as storing documents more securely and sensibly so they can be quickly retrieved during emergencies. It encompasses decentralized finance (DeFi) and nonfungible tokens (NFTs), but it’s also about bringing “scalable blockchain solutions to enterprises and governments,” including such humdrum but important use cases as compliance management, Ava Labs, creator of Avalanche, said last week.

In a webinar on Jan. 12, which included both Ava Labs and Amazon Web Services representatives, Ava Labs vice president John Nahas, explained, “Crypto products or crypto infrastructures have been very geared up until this point to cater to crypto-native people. […] We need to expand the pie here. We need to expand the developers, the companies, the people who are going to be utilizing this technology in a mass-market way to bring in more people into this ecosystem.”

A ‘fake partnership’?

The Avalanche community generally welcomed the Amazon Web Services news, but others took issue with some of the language and claims, like Ava Labs CEO Emin Gün Sirer’s assertion that “This is a big deal. It’s not your grandfather’s ‘AWS partnership announcement.’”

Was this really a “partnership,” some questioned, or just a hyped-up “use of services” agreement? Maybe Amazon Web Services was really more “tech aggregator” than collaborator? Hadn’t other layer-1 chain developers, like Casper Labs, already “partnered” with the tech colossus to allow developers to directly deploy node infrastructures or design private networks via Amazon? Indeed, developers had been invited to “set up your own managed Ethereum node” on Amazon Managed Blockchain back in May 2021, no?

In a tweet, Alejandro Pastore, CEO of Pastore Capital, described the announcement as a “fake partnership between @avalancheavax and @amazon” where Ava Labs “sold us a service rental disguised as an association with Amazon.”

Be that as it may, the Jan. 12 webinar presented three Ava Labs managers, including president John Wu, appearing beside AWS global tech lead for Web3 Shai Perednik and Bradley Feinstein, Web3 lead at Amazon Web Services. Feinstein specifically used the word “partnership” to describe the new Ava-AWS association and no one present objected. AWS and Ava Labs will hold another joint webinar together in February and a jointly sponsored hackathon in May, they announced.

More important, perhaps, is a larger question: What, if anything, does this association mean for blockchain evolution generally?

Catalyzing innovation

“It appears that Avalanche will get the best shelf space on AWS among blockchain platforms,” Matthew Sigel, head of digital assets research at VanEck, told Cointelegraph. Businesses looking to launch blockchain-based applications from their AWS environment will get the best support and pricing if they choose Avalanche, Sigel further noted, adding:

“On a Twitter Spaces with AWS and Avalanche reps, AWS committed to marketing, education and discounts for businesses launching Avalanche subnets within AWS.”

The collaboration could have some positive industry spin-offs too, in Sigel’s view, catalyzing “meaningful innovation in the space.” Businesses may now find it easier to launch permissionless blockchains faster and easier if Amazon Web Services becomes an active presence in this market.

Recent: FTX fallout: SBF trial could set precedent for the crypto industry

Nor is Amazon the only tech giant moving in this direction. “Recall that, in November, Google Cloud launched what looks like a similar partnership with Solana,” Sigel said. Given that so much computing has moved to the cloud, it’s “positive to see this kind of commitment from the big providers.”

“The main news here is that we are seeing Amazon Web Services supporting the Avalanche blockchain ecosystem,” Sarson Funds analyst Evan LaMontange told Cointelegraph, allowing Avalanche’s custom subnets to be integrated into the AWS marketplace. It will be allowing both individuals and institutions to launch subnets that can operate as self-sufficient blockchains. systems. He added:

“This has sparked a new vision of scalability, allowing entities to easily spin up their own standalone blockchain systems.” 

Others doubted the new collaboration rises to industry-level significance, however. “It certainly means that launching/running AVAX nodes is easier on AWS,” Freddy Zwanzger, Ethereum ecosystem lead at Blockdaemon, told Cointelegraph, but “there are already other blockchain nodes/templates available from different cloud or hosting providers.”

Of course, any improvements with regard to running blockchain infrastructure is positive, Zwanzger added, “but our institutional customers expect from us, as an institutional infrastructure provider, best-in-class service” which includes specialized setups.

Elsewhere, Howard Wright, vice president and global head of startups at AWS, called the firm’s teaming up with Ava Labs “a seminal moment,” an inflection point where blockchain technology becomes “commonplace and used in our marketplace by developers.”

Some of the Twitter commentary suggested the announcement was designed principally to pump the price of the AVAX token. “It’s not the first time it has happened in this market,” noted Pastore in his 15-part Twitter thread. “This market is full of manipulation,” adding:

On the other hand, almost all coins had a boost after the announcement, and that probably had more to do with favorable interest-rate news than anything specific to the crypto world. Comparing AVAX’s price movement with Bitcoin (BTC) and Ether’s (ETH) over the seven-day period of Jan. 10–17, Cointelegraph found that AVAX was +34%, but BTC and ETH weren’t that far behind at +24% and +19%, respectively. 

An unusual tripartite structure

Launched in September 2020, the Avalanche blockchain has some unique elements. It actually consists of three individual blockchains: The X-Chain used exclusively to send and receive funds, the P-Chain for staking and validator activities, and the C-Chain for smart contracts and DeFi applications.

“Avalanche blockchains even use different consensus mechanisms based on their use cases,” notes CoinMarketCap. It’s not like BTC or ETH where all nodes validate all transactions. This division of labor arguably boosts transaction speed.

In fact, Avalanche claims to be the fastest smart contracts platform in the industry as measured by time-to-finality. It also has the most validators securing its activity of any proof-of-stake protocol, according to Ava Labs.

Others, too, acknowledge its strengths. “Avalanche offers near-instant finality and penny-per-transaction costs,” commented Sigel. “Ethereum settles much more slowly at a higher cost.” Ease of use could also differentiate Avalanche from other chains moving forward, given that AWS may make it easier to launch an Avalanche subnet, he added.

Working with governments

Ava Labs seems keener on supporting government entities than some other chain developers. In November 2021, it announced a “strategic alliance” with Deloitte to build a blockchain-enabled “disaster recovery platform” to enable state and local governments to more easily demonstrate their eligibility for federal emergency funding.

Government is still an “under the radar” area for blockchain applications, said Ava Labs senior vice president Nick Mussallem at the webinar, while noting Ava Labs’ “partnership” with Deloitte to work with communities and government agencies like FEMA on blockchain applications that reduce administrative costs:

“It [the blockchain] helps accelerate recovery by organizing the documentation that’s needed to demonstrate eligibility [for funding]. It simplifies the retention by storing and linking all the related documentation securely on Avalanche.”

‘Subnets serving as appchains’

The blockchain world is changing and Amazon is looking to get on board. At least that’s the signal Ava Labs was sending last week. 

“AWS recognizes how blockchains are evolving, with subnets serving as appchains, and wants to be one of the hosting providers for the many subnets that people are about to launch,” said Sirer.

Recent: App-specific blockchains remain a promising solution for scalability

Maybe Ava Labs went a tad too far in claiming a “partnership” with Amazon — which is like the moon claiming a partnership with the sun. But Ava Labs should be applauded for looking beyond use cases aimed exclusively at crypto natives while drawing on AWS’s flexibility, scale and authority to enable developers to build subnets for use by everyday businesses and government agencies, among others.

If blockchain technology is ever to achieve mainstream status, after all, it will be built subnet by subnet — including use cases as mundane as document retention and the like.

DeFi should complement TradFi, not attack it: Ava Labs CEO | Davos 2023

The co-founder and CEO of Ava Labs spoke with Cointelegraph at the World Economic Forum in Davos, Switzerland, on the future of DeFi and TradFi as two industries with merging value systems.

Decentralized finance (DeFi) is on its way from becoming a small niche within the financial industry to something traditional finance (TradFi) is trying to incorporate. 

In an interview with Cointelegraph at the World Economic Forum (WEF) in Davos, Switzerland, Emin Gun Sirer, the co-founder and CEO of Ava Labs, spoke on DeFi’s role in TradFi ecosystems and what users can expect in a future where both are on center stage. 

Sirer stressed that the purpose of DeFi is not to attack or be an enemy to TradFi, but rather complement it, at least initially.

The Ava Labs co-founder highlighted that DeFi could offer services to people that TradFi doesn’t, especially when it comes to democratized access to financial services and platforms. 

Sirer believes that the two will come together. However, this is a developing mindset in the DeFi space, as first-generation DeFi systems presented an alternative to TradFi.

According to Sirer, this is because these two financial worlds initially had different values, which are now merging.

“Now TradFi is understanding that, yes, [DeFi] has the transparency that we clamor, [they] can do safety tests on their systems because of the audit-ability of the systems they built, that we cannot do.”

A recent statement from an executive at Ripple also revealed an expectant attitude toward more TradFi adoption in 2023. This is also something industry insiders are looking at in terms of acquisitions of crypto companies by larger, legacy companies in the TradFi space. 

From the DeFi side, Sirer says that those who will come out as visionaries are going to be the chains that absorb this growth.

Related: Trouble brewing for the US: Two-thirds of TradFi expects a 2023 recession

Despite the rosy forecast for a DeFi-TradFi merger, the space has seen a turbulent year. DeFi projects saw the highest number of attacks and exploits in 2022, with more projected in 2023.

After the FTX scandal, many outside the industry grew increasingly skeptical of what decentralized financial technologies could offer.

Sirer says that post-FTX, everyone needs to be reminded that this industry is here to stay, as well as this new asset class.

“There are many of us who dedicated our careers to scientific development in the blockchain space. We undertook all of the steps necessary to solve the scalability problems to solve the governance problems, the compliance problems that the space faced.”

DeFi is even being reimagined through an institutional lens to benefit larger corporations in mainstream industries, including TradFi banks. 

How to connect the Avalanche network to MetaMask?

Avalanche users can enjoy Ethereum Web3 and DeFi applications by connecting the network to MetaMask. Here’s a step-by-step guide to doing it.

One of the main properties advanced in blockchain technology is interoperability, the art of different blockchains communicating with one another. Interoperability is crucial when it comes to exchanging data and assets such as nonfungible tokens (NFTs) or cryptocurrencies while enjoying the best of two or more platforms to save on fees, for example, or transact faster.

The Avalanche blockchain is an interoperable, versatile platform and cryptocurrency network that addresses scalability, security and decentralization issues with a unique proof-of-stake (PoS) governance type. It was developed by Ava Labs, a New York-based research and development company, to launch decentralized finance (DeFi) and enterprise blockchain applications. 

It is powered by its native token, AVAX, and has smart contract functionality that puts it in direct competition with Ethereum. The PoS platform’s smart contracts primarily support decentralized applications (DApps) and autonomous blockchains with fast transaction processing times, a reward structure incentivizing participation, and advanced interoperability. 

Avalanche interaction with Ethereum and its DeFi ecosystems is facilitated by the crypto wallet MetaMask, a software that as many as 10 million people use. It can be downloaded as a browser extension on Chrome and Firefox or as an iOS and Android mobile phone app. Before interacting with Ethereum’s blockchain and DApps, users need to add the Avalanche network to their MetaMask wallet, and this guide will show them how to do it.

How to set up MetaMask?

MetaMask is a cryptocurrency wallet that allows users to connect with DApps besides storing Ether (ETH) and ERC-20 tokens. Connecting MetaMask to Avalanche allows AVAX users to enjoy all the DApps Ethereum has to offer without leaving the Avalanche network. The Avalanche interoperability also makes the network more accessible for developers to build on since it shares its smart contract programming language, Solidity, with Ethereum.

It needs to be noted that there are three blockchains on the Avalanche network: the Exchange Chain (X-Chain), the Contract Chain (C-Chain) and the Platform Chain (P-Chain). 

The Avalanche X-chain’s primary use is to send and receive AVAX and cannot be employed on Web3 platforms or added to Web3 wallets like MetaMask. The P-Chain is the metadata blockchain on Avalanche that coordinates validators, keeps track of active Subnets — sovereign networks that define their own rules regarding their membership and tokenomics — and enables the creation of new Subnets. 

Only the Avalanche default smart contract C-Chain wallet is compatible with MetaMask, an essential piece of information to bear in mind since, if you select the wrong chain when adding Avalanche to MetaMask, you may lose your coins.

Therefore, to transfer AVAX from an Avalanche wallet, a user’s tokens need to be in the C-Chain wallet or use an exchange wallet integrated with C-Chain, such as Binance. If the token does not reside in the C-Chain, it can easily be transferred internally from any of the other two Avalanche blockchains by paying a small transaction fee.

MetaMask can be added as an extension to Chrome, Firefox, Opera, Brave browser and iOS or Android on mobile from the MetaMask website; however, for the purpose of this article, the Chrome extension will be considered.

Users must verify the legitimacy of the MetaMask website to avoid being tricked by scams and compromised web pages. Downloading the right extension from the official website is strictly recommended.

From the MetaMask website, click “Download for Chrome” and “Add to Chrome” to add the extension. Further steps are listed below:

  1. Install the MetaMask Chrome extension and click “Get Started” on the MetaMask welcome page.
  2. You can import your existing cryptocurrency wallet, but you’ll need to enter the wallet seed phrase; then click on the “Import wallet” option.
  3. You can also set up a new wallet by clicking on the “Create a wallet” button. Here, you must create a secure password to access the wallet from your device.
  4. Essential information about your seed phrase will be displayed on the next page, and you’ll have to pay particular attention to it. The seed phrase, or recovery phrase, is a crucial security feature and backup for your cryptocurrency wallet. It will allow you to access your wallet with your tokens even if you lose or forget your password.
  5. Next, click on the lock button to view the seed phrase. Take note of the words in the proper order, store them securely offline, and never share them with anyone. Your assets may be at risk if someone compromises your device and gets access to your seed phrase.
  6. The system will ask you to repeat the seed phrase on the next page; make sure you select the words in the correct order.
  7. Click “Confirm” to finish and then “All Done” to access your new wallet.

The process described above will connect MetaMask automatically to Ethereum. However, you must complete the steps highlighted below to add the Avalanche network to MetaMask.

How to set up the Avalanche network on MetaMask?

Connecting MetaMask to Avalanche is a rather straightforward process. Once you’ve logged in to the MetaMask wallet, click on the Ethereum mainnet drop-down menu and select Custom RPC, as shown below.

Choose Custom RPC after login to the MetaMask wallet

You will be redirected to the “Add a network” page, where you’ll need to add the following information:

You can view the “Add a network” requirements to use MetaMask on Avalanche here:

_Add a network_ requirements to use MetaMask on Avalanche

Click on “Save” to complete the process. You’re now ready to use MetaMask on Avalanche and all its DeFi and Web3 applications.

How to send AVAX tokens to MetaMask?

After connecting the Avalanche network to MetaMask, you can send your AVAX coins from an Avalanche wallet to your MetaMask wallet. Remember that only the C-Chain is compatible with MetaMask.

  1. Log in to your Avalanche wallet and transfer your tokens to the C-Chain blockchain if they reside on the P- or X-Chain blockchains.
  2. Simply click “Cross Chain” on the left menu bar and select “C-Chain” as the destination chain.
  3. Enter the amount you wish to transfer and click “Confirm.” A small transaction fee will be added to the final amount.
  4. You can now send the AVAX coins to MetaMask by clicking on “Send” from the left menu.
    Click on _Send_ to transfer AVAX coins
  5. Select “C Contract” as the source chain and enter the amount you want to send to MetaMask.
    Choose _C Contract_ as the source chain to send AVAX to MetaMask
  6. Now go to your MetaMask wallet and copy the address, which you will paste into the Avalanche wallet in the “To Address” field.
    Copy address from the MetaMask wallet and paste into the Avalanche wallet in the _To Address_ field
  7. Check whether you have sufficient gas for the transaction fee.
  8. Confirm and finalize the transaction.
  9. Once the transaction is confirmed, you will be able to view the AVAX coins in your MetaMask wallet.

What other wallets are compatible with Avalanche?

MetaMask is surely the versatile DeFi wallet for running smart contracts and DApps; however, AVAX can be transferred, stored, staked and exchanged in other cold and hot wallets. With over 90 million verified users worldwide, the Coinbase wallet is a secure and easy-to-use hot wallet to exchange, earn and store AVAX. Security is enhanced through the software’s two-factor authentication making it a safe wallet to use for both beginners and advanced users.

The Trust Wallet is another hot wallet that supports all DeFi programs, including NFT storage, Web3 capabilities, staking, swaps and purchases. It supports the Avalanche C-Chain in addition to many other blockchains so that DApps could be bridged to AVAX easily. This hot wallet is one of the most utilized among Web3 enthusiasts because of its user-friendly interface and versatility.

Ledger Nano S or X cold wallets both support Avalanche, and users can access and store their AVAX tokens through all Avalanche chain addresses. Cold wallets are recommended over hot wallets, as the private keys to access the cryptocurrency are stored offline in a hardware device, making it difficult for hackers and malicious actors to steal them.

3 reasons why Avalanche (AVAX) price can double by March 2023

The latest AVAX price rally comes on the heels of Avalanche’s partnership with Amazon Web Services as the cryptocurrency market rebounds.

Avalanche (AVAX) has opened 2023 with a bang, rising nearly 55% in the first two weeks. And now, a mix of technical and fundamental indicators hints that the token will keep rallying into March.

AVAX price breakout underway

The AVAX/USD pair appears to have been forming a falling wedge pattern since May 2022 and has now entered the breakout stage of this pattern.

A falling wedge forms when the price trends lower inside a range defined by two converging, descending trendlines. The pattern resolves as the price breaks out of its range to the upside. As a rule of technical analysis, the price can rise as high as the distance between its upper and lower trendlines.

AVAX/USD daily price chart featuring falling wedge setup. Source: TradingView

Applying the theory on AVAX’s falling wedge pattern brings the token’s breakout target at around $34, a 115% increase from current price levels.

Avalanche’s Amazon partnership

AVAX’s bullish setup appears as Ava Labs — the developer of the Avalanche network — becomes an official blockchain solution provider to Amazon Web Services (AWS).

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Notably, the firm will implement new features that make it easier for developers to run an Avalanche node through the AWS Marketplace. Additionally, developers can create Avalanche subnets with a few clicks.

The partnership will increase Avalanche’s utility among enterprises and governments in a perfect scenario which, in turn, could boost demand for AVAX tokens. These prospects have helped the Avalanche token rise nearly 30% in a 24-hour adjusted timeframe.

Macro boosts bullish scenario

AVAX’s bullish falling wedge setup emerges amid improving macroeconomic fundamentals for riskier assets, which may benefit the crypto market in the coming months.

According to a Bloomberg survey, economists are positioned for a drop in the United States Consumer Price Index (CPI). Ideally, declining inflation may prompt the Federal Reserve to stop its interest rate hikes, which leaves investors with excess cash to invest in riskier markets.

The next CPI report will come out on Jan. 12. JPMorgan & Chase sees a 20% probability of the S&P 500 index rising by 3–3.5% if the December inflation figure comes in at 6.4%. The index could rise 1.5–2% if the inflation reading comes inside the 6.4–6.5% range, a scenario with a 65% possibility.

JPMorgan’s game plan on CPI day. Source: Bloomberg

Thus, AVAX/USD could rise alongside the U.S. benchmark index on a lowered inflation reading, with a rally continuing at least until the Fed’s meeting on Jan. 31. 

Downside risks remain

Meanwhile, AVAX shows signs of indecision near $15.75, a strong resistance level supported during the June to November 2022 session.

Related: Bitcoin price targets include new $14K dip as Fed’s Powell avoids inflation

If the price fails to close above the said resistance line decisively, the likelihood of a correction toward its next support line near $10.50 increases. The same level was instrumental as support in June to July 2021 session, as shown below.

AVAX/USD three-day price chart. Source: TradingView

In other words, AVAX risks a 35% drop from its current price levels, a move that could invalidate the falling wedge setup altogether.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Ava Labs partners with AWS to offer one-click node deployment

Other new features include a subnet deployment service and GovCloud integration for compliance-friendly Dapps

Ava Labs, the developer of the Avalanche network (AVAX), has partnered with Amazon Web Services (AWS) to implement new features intended to make running a node easier, according to a Jan. 11 blog post from Ava Labs.

The new features include one-click node deployment through the AWS Marketplace, AWS GovCloud integration for decentralized app (DApp) developers concerned about compliance, and the ability to create Avalanche subnets with just a few clicks.

In the announcement post, Ava Labs CEO Emin Gün Sirer stated that AWS has been an important part of the Avalanche ecosystem in the past, as it has allowed DApp developers to easily launch nodes to test their software. He expects these new features to make AWS even more useful to Avalanche DApp developers. He explained:

“It has been a huge boon for both individual and enterprise developers to be able to spin up nodes and test networks on the fly with AWS in whatever legal jurisdiction makes the most sense for them. I’m proud that we’ve implemented a protocol that can accommodate millions of participants with near-instant finality. Our work with Amazon can accelerate the positive impact of Avalanche.”

Related: Defrost Finance explains how it will compensate victims of hack

The response of the Avalanche community to the news has mostly been positive. One user posted a tutorial showing how to launch an Avalanche node using the new features:

Others focused on the price action resulting from the announcement:

AWS isn’t the first cloud-computing system that Ava Labs has partnered with. In December, it formed a similar relationship with Alibaba Cloud.

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Turkish automaker Togg onboards Metaco for crypto custody and governance

The partnership with Metaco will include using its digital asset custody and orchestration system, Harmonize, to safeguard the custody and governance of Togg’s digital assets.

Turkish automotive company Togg announced a partnership with Metaco — a digital asset custody and orchestration system provider — to secure its open mobility ecosystem built on Avalanche.

Togg’s mobility-as-a-service platform aims to deliver smart contract-powered use cases — including tokenization of mobility services, assessment of CO2 footprint and nonfungible token ownership — for users in Turkey and Europe.

The partnership with Metaco will see the use of its digital asset custody and orchestration platform, Harmonize, to safeguard the custody and governance of Togg’s digital assets. Sharing insights on the initiative, Togg CEO Mehmet Gürcan Karakaş stated:

“Blockchain-enabled digital tokens allow data and other assets to be stored and transferred in a fast, secure, and green way. By leveraging technology from Metaco, we make this possible.”

Hosted over IBM Cloud, Metaco’s platform provides Togg with total control of its encrypted data, workloads and encryption keys. According to the announcement, Harmonize is equipped with compliance standards used by Tier 1 banks dealing with digital assets.

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German car manufacturer BMW recently onboarded two blockchain firms to improve its customer loyalty program in Thailand. On Dec. 29, 2022, BMW announced partnerships with blockchain infrastructure firm Coinweb as its decentralized architecture provider and BNB Chain for settling transactions.

Related: Crypto adoption in 2022: What events moved the industry forward?

The initiative’s first phase focuses on integrating decentralized tech into automating BMW’s daily manual operations. The project’s second phase would see Coinweb develop a customized Web3 application for BMW’s customer loyalty program.

DeFi flash loan hacker liquidates Defrost Finance users causing $12M loss

Moments after a few users complained about the unusual loss of funds, Defrost Finance’s core team member Doran confirmed that Defrost V2 was hit with a flash loan attack.

Defrost Finance, a decentralized leveraged trading platform on Avalanche blockchain, announced that both of its versions — Defrost v1 and Defrost v2 — are being investigated for a hack. The announcement came after investors reported losing their staked Defrost Finance (MELT) and Avalanche (AVAX) tokens from the MetaMask wallets.

Moments after a few users complained about the unusual loss of funds, Defrost Finance’s core team member Doran confirmed that Defrost v2 was hit with a flash loan attack. At the time, the platform believed that Defrost v1 was not impacted by the hack and decided to close down v2 for further investigation.

Core team member Doran confirming attack on Defrost Finance. Source: Telegram

At the time, the platform believed Defrost v1 was not impacted by the hack and decided to close down v2 for further investigation.

Blockchain investigator PeckShield found that the hacker manipulated the share price of LSWUSDC, leading to a gain of roughly $173,000 for the hacker. Upon further analysis, PeckShield’s investigation revealed:

“Our analysis shows a fake collateral token is added and a malicious price oracle is used to liquidate current users. The loss is estimated to be >$12M.”

While the company proactively announced the hack, the community suspects a rug-pull situation at play.

Defrost v1 was initially announced unaffected by the hack as the first version of Defrost lacked a flash loan function.

Core team member Doran confirming attack both Defrost Finance versions. Source: Telegram

However, the platform later acknowledged an emergency for v1 as well, stating:

“Our team is currently investigating. We kindly ask the community to wait for updates and refrain from using either the V1 or V2 for the moment.”

Until further notice, investors are advised to stop using Defrost Finance. An internal team is currently investigating the situation and will reach out to users through official channels.

Defrost Finance has not yet responded to Cointelegraph’s request for comment.

Related: Raydium announces details of hack, proposes compensation for victims

In 2022, North Korean hackers stole crypto worth more than 800 billion Korean won ($620 million) from decentralized finance (DeFi) platforms alone.

A spokesperson from South Korea’s National Intelligence Service (NIS) revealed that all North Korean hacks were done through overseas DeFi exploits. However, with Know Your Customer (KYC) initiatives in place, the total number of North Korean hacks saw a significant reduction.

Avalanche to power Alibaba Cloud’s infrastructure services in Asia

Avalanche’s partnership with Alibaba Cloud will see the development of tools that enable users to launch validator nodes on Avalanche’s public blockchain platform in Asia.

Alibaba Cloud, a.k.a Aliyun, a subset of Chinese e-commerce giant Alibaba, announced an integration with Avalanche blockchain to power the company’s Node-as-a-Service initiatives. 

Avalanche’s partnership with Alibaba Cloud will see the development of tools that enable users to launch validator nodes on Avalanche’s public blockchain platform in Asia. The integration will allow Avalanche developers to use Alibaba Cloud’s plug-and-play infrastructure as a service to launch new validators.

Developers expecting high resource demands during peak hours can also tap into additional resources — computing, storage, and distribution — offered by Alibaba Cloud.

According to the announcement, Avalanche hosts over 1,200 validators and processes roughly 2 million daily transactions. The scale of the partnership is massive, considering that Alibaba Cloud stands as the largest Asian cloud service provider in the Asia-Pacific region.

Steps to integrate Avalanche with Alibaba Cloud. Source: Alibaba Cloud 

As part of the integration, Alibaba Cloud ran a special promotion by offering Avalanche developers credit toward any of their services. Avalanche currently powers over 1,000 projects, including decentralized finance (DeFi) ecosystems such as Aave (AAVE), Curve, BENQi, Sushi, and Chainlink (LINK).

Related: Alibaba to ban crypto miner sales amid Chinese crackdown

Chinese venture capitalist Bo Shen, a general partner of the Vitalik Buterin-advised venture capital fund Fenbushi Capital, claimed to have lost $42 million from his Trust Wallet.

Shen confirmed that the drained funds belonged to him and was not related to Fenbushi Capital:

“The incident has been reported to the local law enforcement. FBI and lawyers both have been involved. Civilization and justice will eventually prevail over barbarism and evil. This is the iron law of human society. It’s just a matter of time.”

Blockchain analytics firm SlowMist later verified Shen’s loss of funds while confirming no security issues from Trust Wallet’s end.