Avalanche (AVAX) is rallying today and it has gone up by 21.48% in the last 24 hours to trade at about $106.84.
Today’s AVAX price rally seems to be gathering momentum towards the December 1 high of $127.
The bull trend is supported by both the Moving Average Convergence Divergence (MACD) moving above the zero line and the price moving above Moving Average (MA).
But what is causing today’s AVAX rally? Why is the coin moving up?
Here is a detailed outlook of the events that have led to the Avalanche rally.
Circle USDC launch on Avalanche
Today’s AVAX price rally is highly attributed to the announcement that Circle's USD Coin (USDC) shall be supported on Avalanche.
The move by Circle, which is a global online financial firm that provides online payments and the financial infrastructure for businesses to transact online, to launch USDC on Avalanche is geared to push more decentralized applications (DApps) on Avalanche.
The announcement was made by the Founder and CEO of Ava Labs Emin Gün Sirer through a tweet.
— Emin Gün Sirer🔺 (@el33th4xor) December 14, 2021
The launch of Circle’s USDC on Avalanche asserts the Avalanche’s push for diversity as it seeks to have a share of the DeFi ecosystem. The launch of USDC came after Avalanche announced the support of Tether’s stablecoin USDT in November.
USDC has become a force to reckon among the stablecoins as it emerges as a key competitor to Tether (USDT), which is one of the most used stablecoins within the crypto space. USDC currently accounts for approximately a third of the total stablecoin supply within the crypto space.
Analysts believe USD-backed stablecoins could increase on-chain activity on the Avalanche network and compel DApps to build projects on the network.