AVAX Price Records A Dip Despite Having Partnered With Amazon And Launching A New Stablecoin

AVAX had recently earned a high status among all major cryptocurrencies when it announced its major announcement with Amazon.

The reports confirmed that the cloud service of Amazon, Amazon Web Services (AWS) had announced its adoption of AVAX.

The AWS officials had announced that they wanted to develop blockchain solutions and wanted to use the expertise of AVAX.

It was confirmed by AWS that they wanted to develop solutions for governments and enterprises from around the world.

This was a huge deal for AVAX as it attracted many investors who wanted to invest heavily in AVAX and increase their profits.

The investors knew that the adoption rate for AVAX would surge tremendously and therefore, they increase their investments in the asset.

People now know that AVAX has become a major strategic partner of Amazon. They also know that the solution has a lot of utility to offer in the DApp ecosystem and for smart contract infrastructures.

Partnership with AWS

Despite the announcements of major deals formed by AVAX, the trading price of the asset has started to retreat.

Many considered that the AWS announcement would act as a major positive catalyst for AVAX. Although it did work its wonder in the beginning, it seems to have lost its touch lately.

Amazon is very enthusiastic about its latest partnership with AVAX. This is the reason why it chose AVAX over other blockchain solutions.

It finds the blockchain solutions provided by AVAX to be very promising and supportive. The cloud-based solution-providing company wants to tap into blockchain technology.

For this purpose, it formed its deal with AVAX to offer new and promising solutions in the particular field. It was thought that the AVAX blockchain would eventually benefit from the new deal.

Therefore, the investors started pouring more funds into AVAX. Thus, the trading price of the asset moved higher.

Support for a Stablecoin

In addition to the above, the officials at AVAX blockchain made a major announcement pertaining to the launch of a new stablecoin.

The team revealed that they would support the development and issuance of a new stablecoin “USP”. The team working on the particular stablecoin project is Platypus DeFi.

The particular protocol requested the support of the AVAX blockchain and announced that the new token will be launched through their blockchain network.

The Platypus teams also confirmed that the new USP stablecoin would also become part of the primary pool of tokens supported by the AVAX blockchain.

The primary pool will act as a stabilizer for the new stablecoin and it is to provide great utility to the AVAX blockchain.

Prior to USP, Avalanche had no stablecoin on its protocol. However, with the addition of the USP stablecoin, the Avalanche blockchain will finally be complete.

This would be a major step for the Avalanche blockchain, finally, managing to complete the entire ecosystem of the particular blockchain network.

With the ecosystem being complete, more users will become part of the AVAX network, thus, bringing in more utility. This is yet another major step for the blockchain, tremendously increasing its demand.

AVAX Price has Dipped

Despite the two major catalysts backing up with blockchain, the price of the asset has continued dipping. The data shows that in the past 24-hours, the value of the AVAX token has recorded a dip.

The price chart shows that the value of the token has dipped by 8% in a 24-hour window. The price dip was recorded between January 14 and January 15.

In the past week alone, the value of the asset had surged by 36.5%. The hourly trading volume for AVAX had surged to $11.6 million. This was the highest level AVAX had hit in the past 90 days.

However, the price of the asset was not able to sustain its position and it ended up taking a fall. The asset now trades at a low of $15.06.

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