Avalanche, a pioneering Blockchain in the world of cryptocurrency, has been chosen as the platform for Republic’s Republic Note, a revenue-sharing tokenized security that allows owners to invest in Republic’s investment portfolio. This portfolio includes Web3 companies such as Avalanche, DappRadar, and Dapper Labs. So, how does this development impact the AVAX cryptocurrency? Let’s take a closer look.
According to the announcement on the company’s website, Republic Note is backed by an environmentally conscious private equity portfolio, and its price is set at $0.36. Before being listed on exchanges, approximately 372 million Republic Notes will be in circulation. The total supply is limited to 800 million units.
According to the promotional bulletin containing information about the security, owners of the digital asset will have the right to receive payments from the dividend pool when it reaches a figure determined by Republic management, which is $2 million. Payments will be made with USDC. Andrew Durgee, the president of Republic, emphasized the reasons for choosing Avalanche. He stated that Avalanche was chosen because it fulfills the requirements of “reaching and scaling a global investor base” that are necessary for them.
AVAX experienced a price drop after a two-week upward movement. At the time of writing, the price is trading at $20.9, down 4.95%. The Chaikin Money Flow metric is a metric that measures the buying and selling pressure of a token at a certain time. At the time of writing, this metric indicated a downward trend. The consistent decline of this metric indicates an increase in liquidity outflow in the AVAX spot market. The CMF value of the token is currently at 0.16.
The fact that the AVAX price has remained around $21 suggests that this level could be an important support level. In the previous pullback, the price also rebounded from the $20 range. This indicates that market participants are in an accumulation mode. Finally, the token’s key momentum indicators, the Relative Strength Index (RSI) and the Money Flow Index (MFI), stood at 65.04 and 67.33 respectively at the time of writing. This indicates that buying pressure continues to outweigh selling pressure in the cryptocurrency.