Avalanche and Salvor's $1 Million Venture into NFT Lending: A Game-Changer for AVAX?
[TL; DR]
Salvor has entered the Avalanche Rush Program which may lead to a higher demand for NFTs and AVAX.
Salvor will enable users to use NFTs and memecoins as collateral against AVAAX loans.
The AVAAX price may reach$100.34 by the end of 2024 and $567.06 by 2030.
Introduction
Success in the blockchain and crypto sector requires more than capital investment. Continued innovation, regulatory compliance and partnerships are vital for crypto projects to excel and overcome competition. For example, partnerships among blockchain firms can improve their e-token liquidity and expand their communities. This analysis looks at Avalanche’s partnership with Salvor and how that can benefit the two crypto firms.
Avalanche’s Partnership with Salvor to Launch an NFT Lending Platform
Salvor, which was launched as an NFT marketplace in November 2022 and later evolved into a Peer-to-peer lending protocol, recently joined the Avalanche Rush Program, a move which will likely bring vibrancy to the AVAX eco. Through its NFT and memecoin lending services, Salvor will attract many investors to the blockchain which will increase its liquidity. The other features that will lure many investors are its NFT launchpad and liquidity pools.
Read also: Custom NFT Marketplace Development and its Cost in 2024
Following the partnership the Avalanche Foundation gave Salvor $1 million worth of AVAX tokens as part of the deal. Generally, through this program Salvor will accept memecoins and NFTs as collateral for AVAX loans which will boost financial flexibility and liquidity in the Avalanche eco. In the meantime, many other DeFi projects have joined the Rush Program, an important decentralized finance innovation on the Avalanche network. Through its X profile page, Avalanche posted the details of its partnership with Salvor as the image indicates.
Source: x.com
Understanding the Avalanche Rush Program
In 2021, Avalanche AVAX unveiled $180 million to kickstart its Avalanche Rush, a liquidity mining incentive program, targeted at attracting many DeFi projects and related applications to its financial eco. The program which was rolled out in several phases integrated Aave and Curve during its initial stages and has improved financial flexibility in DeFi.
During that phase Avalanche distributed AVAX worth $20 million and $7 million to AAVE and Curve, respectively. The other DeFi protocols that joined the Rush Program include Penguin Finance, Sushi, GMX and Struct Finance.
As mentioned above, the program makes borrowing of AVAX very simple since borrowers can use memecoins and NFTs as collateral. On the other hand, the lenders can earn interest on the funds they provide. Basically, this liquidity mining initiative enhances decentralization and brings financial flexibility in the Avalanche eco. More importantly, Salvor brings cost efficiency to the platform as it streamlines trading through one-transaction bulk actions which saves time and reduces gas fees.
Salvor’s participation in the Rush Program promotes memecoin and NFT trading as well as token lending on the Avalanche blockchain. What is also interesting is that the Salvador participants earn valuable points for the different activities such as trading, loan offers and borrowing. In the end, the users will be able to redeem their points for Salvor’s ART token or AVAX. The aim of the financial incentive in the form of points is to increase Salvor investment, promote market engagement and stabilize AVAX valuation.
Posting on X, Salvor highlights its contribution to the Avalanche Rush Program. Utku Salvor, the Salvor founder said, “We started as an NFT marketplace to make trading easier for our users. By introducing P2P NFT Lending, users can now borrow funds against their NFTs without needing to sell them. We believe this will play a key role in supporting healthy ecos. Our primary focus is to make NFTs more liquid.”
On the other hand, Aytunc Yildizli, the CEO of the Avalanche Foundation has portrayed the alliance as strategic. He said on X, “Salvor’s participation in the Avalanche Rush Program marks a significant milestone for bridging DeFi and NFTs on Avalanche. By facilitating secured loans against NFTs, Salvor not only potentially enhances liquidity but also widens the scope for NFT owners to engage in the financial eco without selling their assets.”
Salvor, the NFT lending platform, holds more than 800 NFT collections which include big names such as Dokyo, Steady, MadSkullz, and Chikn. In addition, Salvor’s NFT marketplace will attract many NFT owners to participate in the Avalanche DeFi eco. Also, the peer-to-peer lending will enable participants from all over the globe to provide digital asset liquidity or offer their NFT collections support.
AVAX’s Price Performance amidst NFT Market Downturns
The partnership may have a very positive impact on the Avalanche AVAX price. This is because Salvor investment will further increase the utility of the token as well as the liquidity of digital assets within the Avalanche-Salvor crypto sphere.
A few days after the announcement of the partnership the value of AVAX surged significantly. For instance, during the 24-hour period that stretched between 9 and 10 May the AVAX price rose by 4.52% from $34.32 to $35.86, which indicated an improvement in its market sentiment. During the same period its market capitalization increased by 4.61% to reach $13,660,584,770. At the time of writing, AVAX which is trading at $37.04 gained by 13.4% within the last 30 days as the following graph indicates.
AVAX Price Performance – CoinGecko
As observed in The Graph, despite the dips and bounces Avalanche AVAX has maintained a relatively high value for the past one month. Currently, AVAX has a positive market sentiment since it has a Greed and Fear rating of 74. Irrespective of the recent alliances, Avalanche is a fast growing blockchain which hosts several decentralized applications and other smart contracts.
Based on the current blockchain and cryptocurrency market trends the NFT sector is depressed. For example, NFT revenues for April dropped by 31.26% compared to March. During March the NFT market had a total valuation of over $1.15 billion. The Bitcoin-based NFT had the highest valuation of $597.62 million despite taking a dip of 4.3% compared to March.
The trading volumes and revenues of Solana and Ethereum-based NFTs dropped tremendously during April. NFT sales on Ethereum and Solana decreased by 56.8% and 39.4%, respectively. The Polygon and Mythos Chains also recorded NFT sales decreases of between 4.19% and 7.46%. According to Cryptoslam, the best NFT performers during April were Bitcoin’s Uncategorized Ordinals whose value increased over the March figures.
Avalanche AVAX Price Prediction for 2024/2025/2030
The current price predictions for AVAX are based on the effects of the recent bitcoin halving and its historical price movement. CoinCodex predicts the AVAX price to reach $122.07 by 14 June. This is possible if the value of Avalanche AVAX increases by 229.34% within the remaining time frame.
On the other hand, Changelly forecasts the value of AVAX to fluctuate between $99.22 and $100.34 by the end of 2024. To achieve this value range the AVAX price should increase by about 159.9%.
In the long term, AVAX may trade at around $175 by the end of 2025 and $152.91 by 2030 as the following table indicates.
Avax Price Prediction for 2025 and 2030 - CoinCodex
As you note from the table, AVAX will gain incrementally between now and 2030. Currently, AVAX is edging closer to an overbought zone which indicates a possible price retracement by end of May.
AVAX’s Current Market Condition - CoinCodex
On the contrary, the Changelly price prediction is less optimistic than the Codex one. This analytic platform forecasts the AVAX price to fluctuate between $68.16 and $81.91 by the end of 2025. However Changelly is more optimistic than CoinCodex in its long term AVAX price forecast as it indicates its value to range between $478.70 and $567.06 by 2030.
In the meantime, AVAX’s key support levels are at $ 33.87, $ 33.26 and $ 32.69. On the other hand, its closest key resistance levels are at $ 35.05, $ 35.62 and $ 36.24. Also, AVAX is positively correlated with Cardano (ADA), Ethereum Classic (ETC), Polkadot (DOT) and Polygon (MATIC). On the contrary, it is negatively correlated with TRON (TRX), Zeebu (ZBU), Toncoin (TON), Worldcoin (WLD) and LEO (LEO).
Conclusion
Salvor’s partnership with Avalanche in its Rush Program will likely increase AVAX’s liquidity and NFT trading volumes. This may also stabilize the value of the cryptocurrency due to the rise in its utility and demand. In the meantime, some analysts predict the AVAX price to range between $152.91 and $567.06 by 2030.
