AVAX/ICP Migration Trade
Updated
*LONG TERM MOMENTUM SHIFT SETUP*
AVAX has been one of the best performers in the top 100 for the past few weeks. Due to the Avalanche Rush liquidity migration event on September 21st, I expect this to continue for some time.
ICP/USDT has been badly bruised after suffering a -90% correction and being one of the worst performers within the top 100 the past few weeks. However, it has very strong fundamentals and shares similarities to Avalanche in terms of consensus protocol implementation, subnetting capability and in value proposition. Avalanche suffered a long period of underperformance after the minting bug occurred in early February 2021, but proved to be an amazing entry at the tail end of the summer 2021 correction due to it's underlying fundamentals and release of many key updates, applications and incentive programs. Assuming the crypto market as a whole holds up for a few months, at some point AVAX will become fully priced or overpriced. It's growth will slow dramatically or outright collapse, or somewhere in between. ICP will have it's day in the sun perhaps as a sort of carry-over trade - once the liquidity incentives on Avalanche network become diluted vs the amount of liquidity competing for them, it will be exceedingly easy for ICP to initiate their own liquidity incentive program and rapidly begin deploying well-tested apps. ICP DeFi is in the works and yet to be deployed.
The trade is essentially to migrate from AVAX to ICP when technical structure on the AVAXUSDT/ICPUSDT chart shows a trend breakdown along with a fundamentally understated value differential. Long-long term, I expect both to do quite well.
AVAX has been one of the best performers in the top 100 for the past few weeks. Due to the Avalanche Rush liquidity migration event on September 21st, I expect this to continue for some time.
ICP/USDT has been badly bruised after suffering a -90% correction and being one of the worst performers within the top 100 the past few weeks. However, it has very strong fundamentals and shares similarities to Avalanche in terms of consensus protocol implementation, subnetting capability and in value proposition. Avalanche suffered a long period of underperformance after the minting bug occurred in early February 2021, but proved to be an amazing entry at the tail end of the summer 2021 correction due to it's underlying fundamentals and release of many key updates, applications and incentive programs. Assuming the crypto market as a whole holds up for a few months, at some point AVAX will become fully priced or overpriced. It's growth will slow dramatically or outright collapse, or somewhere in between. ICP will have it's day in the sun perhaps as a sort of carry-over trade - once the liquidity incentives on Avalanche network become diluted vs the amount of liquidity competing for them, it will be exceedingly easy for ICP to initiate their own liquidity incentive program and rapidly begin deploying well-tested apps. ICP DeFi is in the works and yet to be deployed.
The trade is essentially to migrate from AVAX to ICP when technical structure on the AVAXUSDT/ICPUSDT chart shows a trend breakdown along with a fundamentally understated value differential. Long-long term, I expect both to do quite well.
Note
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