AVAX benefits from Avalanche metaverse conversion

By Raffaele Redi
• Updated

The platform aims to usher in diversity, equity and inclusion with Web 3.0

Now closer to blockchain, gaming and the metaverse – and even to US Congress – than it is to decentralised finance (DeFi) projects, the Avalanche platform is gaining interest from investors.

AVAX, the token associated with Avalanche, gained 20% on crypto markets over the past seven days, seeming to recover from the recent crypto winter better than other altcoins.  

The layer-1 smart contract platform, built by Ava Labs and headquartered in Singapore, seems to be on the verge of a breakthrough.

Being one of the fastest platforms around – while also being more sustainable and low-cost, because it operates on a proof-of-stake protocol – Avalanche was born to host DeFi projects, yet it seems to have turned its attention instead to the metaverse, potentially eroding Ethereum’s dominance.

Deal with EonXI Labs

The Avalanche Foundation recently announced a strategic investment in EonXI Labs, a US-based incubation lab.

In 2021, EonXI contributed to Dapper Labs’ $12m funding round. Dapper Labs is the company behind the NBA Top Shot NFTs, one of the world’s most traded NFT collections, and is also one of the first NFT companies to announce it would lobby US Congress.

“With EonXI Labs’ continued steer in ushering in Web 3.0 diversity, equity and inclusion (DEI), the Avalanche Foundation’s significant investment will help bridge socioeconomic resource gaps via the metaverse and play-to-earn gaming,” said the Avalanche Foundation.

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“Sherrard Harrington and Aaron Wilson, two Black American thought leaders, have steered the incubation lab to remarkable heights, staking fledgling start-ups in red-hot sectors such as blockchain, gaming and the metaverse,” it said.

Closer to metaverse but far from polluting blockchains

While the agreement with EonXI Labs brings Avalanche closer to the metaverse, the platform showed off its green credentials with recently released data from the Crypto Carbon Ratings Institute (CCRI) on the environmental impact of cryptocurrencies.

“The Avalanche public blockchain uses just 0.0005% of the amount of energy consumed by the Bitcoin blockchain, and only 0.0028% of that of the Ethereum network,” Avalanche said in a statement about the research.

“The Avalanche network was found to consume the same amount of energy as only 46 US households. The average US household consumes 10,600kWh per year,” Avalanche said.

AVAX is currently trading 3.50% higher at $85.42, with a market capitalisation of $20.9bn and a trading volume of $2bn – up 164% over the past 24 hours. 

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