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Blockchain platforms have evolved immensely because of the impact of Bitcoin. While major crypto players like Bitcoin and Ethereum have massive market shares, they have some notable problems that are formidable points of concern.
Recently, Ethereum gas fees soared, and Bitcoin transactions slowed due to network congestion. Alternatives, like Avalanche (AVAX), have evolved in the crypto landscape to overcome the limitations of previous blockchain networks.
Avalanche is becoming more relevant in the financial industry, especially in the DeFi sector, which is becoming more integrated into people’s lives. While one of the most notable projects in DeFi is the Avalanche network, many retail and institutional clients want to know whether AVAX is a good investment and how they can make the most of the tokens.
What’s happening?
It’s difficult to tell whether AVAX or any other cryptocurrency is a good investment. However, following price analysis is an excellent way to understand the potential for such investments.
Avalanche’s token AVAX has shown consistent bullish growth, surging by over 60% in the past 30 days. At the time of writing, the token is trading at $54.37, up 0.68% in the last 24 hours. With its market cap standing at $ 20.40 billion, AVAX is currently the 10th largest cryptocurrency, according to the Coinmarketcap market aggregator.
The latest surge in price can be attributed to the recent announcement by Avalanche that it’s partnering with Chainlink and the Australia and New Zealand Banking Group (ANZ) to explore tokenized assets. Based on the partnership, ANZ is set to benefit from Chainlink’s and Avalanche’s blockchain interoperability solutions by enabling smooth movement and settlement of tokenized assets across different networks, serving customers globally.
The partnership represents a significant step towards integrating the traditional financial market with cryptocurrency. Traditional financial institutions embracing blockchain signify efforts to remain relevant and competitive, enhance efficiency, and modernize the financial sector with distributed ledger technology.
Founders launched the Avalanche blockchain for public use in September 2020, with the AVAX token trading at $5.3. The token traded below the $5 mark for a few months until January 9 2021, when it eventually broke a significant barrier of around $5.7. The token then experienced an upward trajectory, climbing a price of $55 in early February, triggered by the 2021 crypto bull run.
In August 2021, AVAX further surged its value to $76 after Ava Labs, the firm behind Avalanche development, launched a $180 million liquidity mining incentive program. After the announcement, AVAX’s price did not do much for the next few months. However, the token recorded its highest-ever price of $128 in November at the peak of the 2021 bull market.
Moving into 2022, AVAX fluctuated its price between $90 and $120 until after April 2022, when its value dropped with the broader crypto market sell-off. In mid-October 2022, the crypto was trading at around $15.
Avalanche prices have risen by 210% in the last one year. The top-performing year for the crypto was 2021 when the crypto soared its price by 3,294.07% from $3.22 to $128.37. The worst performing year for the crypto was 2022 when its value declined by -90.03% from $128.37 to $10.90.
AVAX to hit $100
Market analysts maintain a cautiously optimistic stance, with the Avalanche price prediction reaching $100 by the end of this year based on current market trends and technological advancements.
Cryptonewsz.com forecasts that the token may trade between the ranges of $35 to $100 the rest of the year, with $67 being the average price, $35 being the minimum price, and $100 the maximum price.
Ambcrypto.com simplified the latest AVAX price prediction by dividing up the prediction by short-term and long-term price prediction. In the short-term forecast, Ambcrypto predicts that for May 2024, the token could show an average price of $73.26, with the highest possible price being $78.39 for the month. In the long-term projection, Ambcrypto anticipates that Avalanche would show an average price of $92.84 as of September, with the highest possible price being $99.34 for the month.
What is AVAX?
AVAX is the native cryptocurrency of the Avalanche network. Formed in 2020, Avalanche is an open-source blockchain platform designed for creating customized blockchains and decentralized applications (dApps), providing developers with a scalable and flexible infrastructure for building blockchain-based solutions.
Avalanche is made of 3 interoperable blockchains with multiple subnets and distinct functionalities. The p-chain (platform chain) is responsible for maintaining subnets and validating transactions. The contract chain (c-chain) enables developers to create dApps, while the exchange chain (x-chain) assists in handling trading activities.
The founders, led by Avalanche CEO Emin Gün Sirer, designed the platform to address previous blockchain networks’ speed and scalability limitations.
Avalanche’s scalable architecture allows for higher throughput and faster processing times, ensuring transactions are executed at a lower cost. With scalability and low fees, Avalanche attracts developers and users looking for a cheaper and faster option than Ethereum.
How to use Avalanche
Avalanche is being used for various purposes.
- Customers use AVAX as a medium of exchange within the Avalanche ecosystem, including trading financial assets, like other cryptocurrencies, on the platform.
- Users can stake AVAX, a process where users lock up their tokens for a period to support the blockchain network and, in return, receive rewards.
- AVAX plays a key role in the governance of the Avalanche network. Token holders can propose, vote, and influence decisions related to the platform's operations, contributing to the growth and control of the platform.
- Crypto Climate Coalition “Lemonade” is using the Avalanche blockchain to provide climate insurance to subsistence farmers across the globe.
- Big Four accounting firm Deloitte is leveraging Avalanche's blockchain to simplify and streamline the disaster reimbursement process of the FEMA (Federal Emergency Management Agency).
- South Korean entertainment firm Dreamus is harnessing Avalanche blockchain to combat secondary market abuse, expand its lead in the Korean concert ticket industry, and enhance its ticketing experience.
- Structured finance platform Intain is running its tokenized asset-backed securities on Avalanche blockchain.
- Video game developer Gunzilla, e-commerce company Shopify, and Blockticity, a startup focusing on providing certificates of authenticity, are leveraging their products on Avalanche blockchain.
Conclusion
As highlighted above, Avalanche has unique characteristics that propel it into the front of the crypto race. It has become increasingly popular, both in terms of public attention and market cap. Due to this, it is increasingly being adopted.
Avalanche addresses the need for financial services by providing a financial ecosystem serving users across the globe in terms of payments, savings, investing, and banking.
