Bottleneck in Ethereum network blew prices of BNB, MATIC and AVAX

Congestion and high transaction fees on the Ethereum blockchain drove the breadth of Layer 2 (Layer-2) solutions and protocols compatible with Ethereum Virtual Machine (EVM).

While the popularity of decentralized finance (DeFi) protocols has created density in the Ethereum network, local currencies of alternative solutions have seen price increases of more than 200 percent.

Matic Network, Avax and Binance Coin “ıahlandı”

Daily chart of MATIC / USDT parity. Source: TradingView

Matic Network; It works as a Layer 2 scaling solution powered by Binance and Coinbase. The project aims to foster mass adoption of cryptocurrencies by solving the scalability problems of many blockchain networks.

MATIC, which gave the first signal of an increase in price at the end of January, started to strengthen in the first days of February after testing the psychological limit of $ 0.05 twice. As of February 5, MATIC / USD parity, which rose above the rising channel, was traded at $ 0.04571, while it rose by 221 percent in just 5 days and reached its peak with $ 0.14690.

Rising moving averages (MA) and the relative strength index (RSI) moving deep into the overbought zone increase the likelihood that the strong uptrend will result in a correction.

Daily chart of AVAX / USDT pair. Source: TradingView

Traded in the range of $ 9 to $ 15 from January 16 to February 4, AVAX quickly gained value from February 5. The coin, which found buyers at the lowest $ 12.7650 on February 2, increased by 298 percent in just 5 days, reaching its highest value of $ 60.3035.

The pair, which saw an 8 percent correction while preparing the news, found buyers at the psychological support level of $ 50.

Daily chart of BNB / USDT pair. Source: TradingView

Binance Coin (BNB) has also recently become the name that has seen a significant price increase. Binance Coin, which has been in a slow rising process since December, increased its momentum as of February 5, as seen in other cryptocurrencies. Especially as Binance Smart Chain (BSC), which competes with Ethereum and DeFi platforms, gained strength, the BNB / USD pair reached its all-time high at $ 148.4.

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