AVAX -4.68% , the native token of the Avalanche blockchain, is spearheading a rally among Layer 1 alternatives to Ethereum.

In the past month, blockchain platforms that are considered Layer 1 alternatives to Ethereum have seen their native tokens make gains of over 100%, compared to a 22% increase in the value of ether.

AVAX has surged nearly 130% in the last 30 days, according to CoinGecko data, while Solana's price increased by 113% and the native token of the Near protocol has risen by 110%.

Avalanche's AVAX token price chart from CoinGecko.

In an illustration of the increased activity on these alternative Layer 1s, data from The Block's dashboard shows the number of daily transactions on the Near blockchain has reached an all-time high of 1.68 million.

"Avalanche's collaborations with heavyweight institutions like JP Morgan and Citi are indicative of a growing institutional inclination towards high-performance layer 1 alternatives to Ethereum," said Jeff Feng, co-founder of Sei Labs, which supports the high-performance Sei blockchain.

JP Morgan utilizing Avalanche

Last week, JPMorgan’s Onyx Digital Assets team announced a collaboration with Avalanche on a blockchain interoperability proof-of-concept under the Monetary Authority of Singapore’s Project Guardian initiative. "In this evolving landscape, Avalanche's high throughput and low transaction costs stand out," Feng said.

He added that the utility of Avalanche is being expressed through enterprise applications, from asset tokenization to payment processing. "These developments highlight the financial industry's active search for scalable blockchain solutions," he added.

Feng also pointed to Avalanche as having unique design choices and technical advancements that enable efficient handling of high-volume, high-speed trading activities. "This addresses the critical scalability and throughput challenges in the blockchain space," he said.

Data suggests AVAX is being overbought

According to data from CryptoQuant, the Relative Strength Index (RSI) of AVAX has fallen into the red, indicating that it is being overbought, increasing the prospect of a trend reversal. The RSI metric indicates that 75% of AVAX's price movement in the past two weeks has been upward. Investors buying into the rapid upward trajectory could have accelerated the token to a level that is considered higher than justified by market conditions.

Nansen analyst Martin Lee sees AVAX's positive price action as not exceptional, but as part of a general rally within altcoins. He cited the Layer 1's association with JP Morgan as a positive development for the chain. However, speaking to The Block, he stressed there has been "a generally more positive market in the past couple of weeks, with lots of tokens having done well in general."