Why The Crypto Avalanche Is Soaring Today | The Motley Fool

What happened

The avalanche (AVAX 27.26%) the cryptocurrency skyrocketed on Wednesday thanks to a freshly signed collaboration agreement with Amazon (AMZN 5.81%) and its Amazon Web Services (AWS) cloud computing arm. As of 4:30 p.m. ET, the cryptocurrency had gained 13.3% in 24 hours.

So what

AWS needed a default blockchain platform to manage and run smart contracts, which can perform financial transactions and property transfers based on real-time market data. The most obvious choice would have been the industry leader and smart contract innovator Ethereum (ETH 3.83%)but AWS kept it interesting by opting for a smaller, faster competitor instead.

On Wednesday, Amazon and Ava Labs, the company that developed Avalanche, published blog posts explaining how developers using Avalanche tokens would now have access to a wide range of AWS assets and features.

“AWS is so valuable because it allows developers to go from scratch to production with dedicated infrastructure,” said Ava Labs President John Wu. Web3 projects who really benefit from this blockchain-as-a-service model.”

Now what

This agreement made Ava Labs a member of the AWS Partner Network collection of technology providers, which puts the Avalanche name at the forefront when AWS-based developers seek technology solutions. Additionally, Avalanche nodes can be deployed in the separate GovCloud network to qualify for federal government projects with strict security requirements.

This is AWS’s first official blockchain partnership, but it likely won’t be the last. Other smart contract platforms will likely follow in the coming months and years, along with AWS support for stablecoins, cross-chain development networks, valuable storage rooms, and more. But Avalanche was the first, and it should deserve the high throughput smart contract platform many development projects that might not have been directed in his direction before.

Avalanche’s token price is still down 84% from last year, even after Wednesday’s positive action. This cryptocurrency (like almost all his peers) still has a long way to go before reaching a new all-time high. Still, this deal with a crucial internet platform is a fantastic step in the right direction.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a board member of The Motley Fool. Anders Bylund has positions in and Ethereum. The Motley Fool holds positions and recommends, Avalanche, and Ethereum. The Motley Fool has a disclosure policy.

#Crypto #Avalanche #Soaring #Today #Motley #Fool #Crypto

Related Articles

Back to top button