The cryptocurrency market is highly competitive due to the sheer number of coins that exist today. To stay ahead of the competition, coins are trying to offer better transaction speed, security, and throughput. One such coin is Avalanche (AVAX), a fast smart contract platform with cheap fees and an eco-friendly platform.
In this article, we will review the features of the project and consider how good an investment AVAX is.
What to Know About AVAX
Ava Labs founded the Avalanche blockchain in September 2020. The central idea was to create a blockchain to improve on issues of congestion and high transaction fees with Bitcoin and Ethereum blockchains. Unlike these older blockchains, Avalanche is notable for its sub-seconds transaction speeds and its high scalability ensured by the use of three blockchains (C-chain, X-chain, and P-chain) on the Avalanche mainnet.
These features have attracted the attention of developers of play-to-earn games such as Crabada and TaleCraft. They are using the blockchain due to the cheaper fees and scalability of the network. This has led to the popularity of its native coin, AVAX. It is now ranked as the 10th largest cryptocurrency with a market capitalization of over $21 billion.
AVAX functions as a medium of exchange on the blockchain and for staking that secures the platform. Holders of AVAX also earn the right to participate in the governance of the Avalanche blockchain which uses the proof-of-stake method of validating transactions and earning rewards. AVAX is listed on most crypto exchanges and is available as part of popular pairs, including USDT to AVAX, AVAX to ETH, and AVAX to BTC.
Avalanche: Price Overview
Like other cryptocurrencies, AVAX has also suffered the effects of volatility in its price history. When it was launched in September 2020, its price was $4.1, but in the bullish run led by Bitcoin in early 2021, the coin’s value rose to $55.3. China’s crackdown on cryptocurrency mining in May 2021 led to a crash in the prices of AVAX. This introduced another bearish trend for AVAX, which depreciated to a low of $10 in July 2021.
Following Bitcoin’s record high price of $68,000 in November 2021, AVAX reached an all-time high price of $146.22 on 21 November 2021. This clearly shows AVAX’s dependence on Bitcoin.
As an investor seeking to diversify your cryptocurrency portfolio, you may consider other investment options like Measurable Data Token (MDT) and AirSwap (AST) tipped by experts to be profitable digital assets in 2022. You can get these coins on exchange platforms that list the MDT to AST pair on their website.
Looking at AVAX Price Forecast
The demand for Avalanche’s unique scaling capabilities of up to 4,500 transactions per second compared to Ethereum’s 14 has unsurprisingly rubbed off on its native coin. AVAX has a current circulating supply of over 268 million AVAX with a market cap of about $20 billion. At the time of writing, the price of AVAX is $68.
This price is not expected to remain static as experts such as Wallet Investor has forecast it to reach $156 in 12 months and $308 in 2025. DigitalCoin, in its AVAX predictions, projected that the coin will trade at an average of $118.3 in 2022. Their long-term prediction is $156 in 2025.
The key takeaway from the opinions of these experts is that AVAX will gain in price by the end of 2022, while a bigger long-term growth potential is a possibility.
What Is the Future of Avalanche Coin?
The improved functionality of the Avalanche blockchain and the increased demand for the AVAX coin makes it a good project to invest in. It is especially becoming evident with the rise of gaming and non-fungible tokens (NFTs). However, it is recommended that you wait for the right time to buy the coin. If the price is too high now, it is best to wait for the right time and buy in the dip.