Avalanche (AVAX) Becomes Title Sponsor of Formula E Team

Even as the mood among crypto investors strengthens as they cheer the launch of US’s first Bitcoin-based ETF, Avalanche (AVAX) is one popular altcoin known for DeFi has been witnessing muted price action lately. At the time of writing, AVAX/USD is trading at around $61.48.

After trading mostly steady through this week so far, AVAX is slowly on the rise, powered by a strongly positive market sentiment as well as interesting fundamental developments. One of the biggest updates that is supporting the token is news of the Avalanche blockchain partnering with Andretti Formula E to become the team’s title sponsor. While this is not the first sports sponsorship as far as the blockchain and crypto industry are concerned, it is the first instance of a company in this space becoming a title sponsor of a Formula E team.

The partnership will not only support co-promotion of both brands, but will also see the team launch an NFT collection on the Avalanche blockchain going forward. In addition, the partnership will also support a blockchain education program and support developer bootcamps across key cities globally.

Other Fundamental Developments Also Support Avalanche

Meanwhile, the bullish mood in the crypto market has driven quite the rally in the DeFi sector as well, taking its TVL past $240 billion – over 20% higher since the beginning of this month. The TVL in Avalanche’s DeFi space has nearly doubled during the period, from just under $4 billion to nearly $7.5 billion till date. DeFi is Avalanche’s key strengths, with the top three projects – Aave, Trader Joe and Benqi, accounting for over 70% of the TVL share.

Leading DEX on the Avalanche ecosystem, Trader Joe, recently announced the launch of a new lending and borrowing platform Banker Joe, which will be powered by Chainlink’s price feeds. The launch of this new offering will further cement the platform’s position as a one-stop trading platform on the Avalanche blockchain, driving more users and activity and supporting the value of AVAX going forward.

AVAX/USD Technical Analysis

On the 4-hour chart of AVAX/USD, moving averages as well as the MACD are exhibiting a strong bullish bias. However, the momentum indicator suggests some selling interest as well.

Avalanche’s price is well past the pivot point at $56.32 and it looks like buyers are getting ready to test the immediate resistance coming up soon at $61.90. Pay a close attention to this level as once it is broken, the bullish momentum in AVAX will strengthen further.