Avalanche (AVAX) Rises Amid Crypto Market Surge: What's Going On?

Avalanche AVAX/USD jumped 8.46% to $25.13 Thursday morning, riding a broader cryptocurrency rally fueled by Bitcoin's surge to a record $111,544. The bullish sentiment follows strong institutional inflows into crypto ETFs, a tightening Bitcoin supply post-halving and dovish macroeconomic signals.

What To Know: AVAX is the native token of the Avalanche blockchain, a high-speed, low-cost platform for decentralized applications and custom blockchain networks. Known for its scalability and eco-friendly consensus mechanism, Avalanche aims to rival Ethereum by supporting DeFi, NFTs, and enterprise applications.

Bitcoin’s rise has lifted the broader market, with Ethereum, Solana, XRP and BNB all posting gains between 3% and 6%. Analysts say the momentum is driven by spot demand, not leverage, highlighting a shift toward institutional adoption, aided by progress on U.S. crypto regulation.

Still, experts caution the market is nearing "extreme greed," with sentiment at 72, and warn of possible pullbacks amid bond market volatility. Long-term risks also loom, including threats from quantum computing that could challenge crypto security if not addressed.

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