XRP and Avalanche: Which Coin Will Hold Its Gains Through October?

XRP and Avalanche both had a strong week in terms of gains, outperforming Bitcoin's 14% rise. XRP surged by 22%, rising from $1.30 to $1.58, while Avalanche jumped 50%, soaring from $7.47 to $11.24.

However, the two cryptocurrencies are now facing different challenges as they head into October. XRP has remained stable above the $1 mark it reached in mid-August and is currently trading at $1.50, down 5.3% from its weekly close of $1.58. Avalanche, on the other hand, spent much of late June through August fluctuating between $6 and $8 before suddenly skyrocketing to over $11.

Avalanche's recent rally is largely backed by news surrounding tokenization, including a partnership with Aave, the largest lending platform in crypto, which launched a hub on Avalanche for loans secured by tokenized assets. The Helicon upgrade also went live, reducing the time required for users to lock their AVAX tokens for staking from 14 days to just 48 hours.

XRP's impressive week was less about significant news and more about a short squeeze. Two important events are coming up for XRP in October: the XRP Ledger's Batch upgrade, which will allow up to eight transactions to settle together or not at all, pending support from at least 28 of 35 validators, and Ripple releasing up to 1 billion XRP from its escrow on October 1.

While Avalanche is waiting on the uncertain ICE decision with no set timeline, our view is that XRP has a better chance of holding on to its recent gains. Its rally was smaller, and it has remained above the key price level it established in August.