Update – November 25, 2021: Avalanche (AVAX) has increased in price recently and remains one of the cryptocurrencies with big potential. Especially since the metaverse world has gained huge popularity recently.
The last market correction was hurtful for the crypto market, leaving major cryptocurrencies with a price 80% lower than their all-time highs. Yet, the crypto market is back on being bullish. Even though most cryptocurrencies have experienced considerable growth during these past few months, crypto projects that support smart contracts have out-performed the others. Solana, Cardano, Avalanche, and Elrond are just some of these cryptocurrencies.
First off, Solana broke its all-time high by reaching the price of $214 on the 9th of September. This meant a 723% increase in the price of SOL in two months. Secondly, we have Cardano and Elrond, both of which broke their all-time highs during early September. Then, we have Avalanche, a cryptocurrency that just set a new all-time high.
This article will be all about Avalanche. We will do our best to explain what Avalanche is used for, how it works, and why is it pumping. Furthermore, we will give you our opinion on the future of this project.
Avalanche (AVAX) Fundamental Analysis
To begin with, we must touch upon the fundamentals of Avalanche. This cryptocurrency was initially launched in September 2020 by Emin Gun Sirer – the current CEO of Ava Labs. Avalanche operates on its blockchain which is focused on providing low transaction fees and high transaction speed. On their Initial Coin Offering (ICO) that was held in February 2019 and May 2020, you could buy 1 AVAX for a price of around $0.50, more than x100 cheaper than today. During these ICOs, a total of 43.9 million tokens were distributed.
AVAX has a maximum supply of 720 million, with around 220 million in circulation. More than 50% of its total supply has been allocated as staking rewards.
Similar to Ethereum, Avalanche supports smart contracts. As of today, more than 225 projects are building on their platform, with DeFi projects like SushiSwap, True USD, Chainlink, and USD Tether announcing that they moved to Avalanche’s blockchain. Being able to offer the same service as Ethereum but doing it more efficiently ‘qualified’ this cryptocurrency to be called one of the ‘Ethereum-Killers’.
We must note that the Avalanche DeFi Ecosystem has around $2.8 billion locked value.
The Avalanche network passes around information by ‘gossiping’ transactions from node to node until all of them are aware of the transaction. The speed of information being passed around varies from time to time; however, it can reach more than 4,500 TPS – achieving finality within a single second.
Recently, Avalanche announced Pangolin – their decentralized exchange. Similar to Uniswap, Pangolin is an Automated Market Maker (AMM), meaning that it keeps trades going automatically. Additionally, the Avalanche roadmap claims that the Avalanche Wallet V3 will roll out by the end of September and will include a mobile version and a browser extension.
The Avalanche Blockchain
The Avalanche blockchain is broken into three blockchains: Exchange (X) Chain, Platform (P) Chain, and the Contract (C) Chain.
Unlike the two other blockchains, the Exchange (X) Chain uses the Avalanche Consensus Protocol. This is the blockchain where assets are created and exchanged. Moreover, this is where AVAX is minted, transferred, and exchanged.
As mentioned before, the Platform (P) Chain does not use the Avalanche Consensus Protocol but rather uses the Snowman Consensus Protocol. This blockchain is responsible for coordinating validators and creating subnets that are used later on.
Similar to the Platform (P) Chain, the Contract (C) Chain uses the Snowman Consensus Protocol. On this chain, the Ethereum Virtual Machine (EVM) Contracts are executed. Furthermore, this is the blockchain in charge of smart contracts. The speed of this blockchain varies, however, it may reach a maximum of 1,500 transactions per second.
Avalanche uses a Proof-of-Stake (PoS) cryptocurrency consensus protocol – a protocol built by an anonymous group of individuals known as Team Rocket in 2018 – to secure its network and validate transactions, making it an eco-friendly blockchain. In January, around 75% of Avalanche’s supply was staked; however, as its price increased, the early investors took their profits. As a consequence, only 53% of its supply is currently staked. There are numerous websites where you can Stake your AVAX, but all of them must fulfill some universal requirements.
First off, a validator must stake at least 2,000 AVAX, while a delegator must delegate at least 25 AVAX. Secondly, the minimum and maximum amounts of time for staking are 2 weeks and 1 year respectively; this rule applies to both validators and delegators. Last but not least, the lowest delegation fee is 2%.
Avalanche (AVAX) Price Analysis
Avalanche is one of the youngest smart contract cryptocurrencies, and it has enormous potential without a doubt. Until today, Avalanche is yet to let its users down. Yet, this project is still under development, meaning that it has a long way to go before it catches up to fully launched projects like Ethereum.
According to CoinMarketCap, AVAX entered the market in September 2020 with a price of around $4. Since Avalanche did not invest that much in marketing when it first joined the crypto space and the market was partly bearish during the fourth quarter of 2020, its price dwelled around $4 for quite some time.
Nevertheless, as soon as the year 2021 started, Avalanche doubled its value, reaching a price of $8.46. This cryptocurrency did not stop there; by the 18th of January, Avalanche hit a trading value of $13.2, setting yet another all-time high. At the time when the craze around Avalanche was thought to be nearing its end, this cryptocurrency surprised everyone once again, hitting the price of $55.6 on the 10th of February. This is the highest Avalanche got during the first and second quarters of this year.
Avalanche experienced a dip throughout the month of July, hitting a low of $10.17 on the 20th of July. Nevertheless, as August and September commenced, Avalanche entered a bull run once again. By the 24th of August, Avalanche was back on the $55.35 price marker. This uptrend continued throughout September, leaving AVAX with a new all-time high of $79.52 hit on the 23rd of September.
Avalanche (AVAX) Market Price Prediction
With all the attention that Avalanche has gotten lately, numerous cryptocurrency influencers and prediction websites gave their opinion on its future. We tried to get the best out of the most notable ones.
CoinBureau, one of the biggest cryptocurrency Youtubers, covered Avalanched on its videos many times. One of his biggest Avalanche videos was released in January 2021, where he explained how the Avalanche blockchain works in detail. In one of his latest videos, CoinBureau believes that AVAX could be aiming for the $100 milestone by the end of the year, possibly setting yet another all-time high.
According to GovCapital, Avalanche is not going to stop its growth anytime soon. Their prediction for AVAX is quite bullish, giving the crypto a potential price of $103 by the end of the year – and that is not all. After a small drawback during January 2022, Avalanche is predicted to continue its rapid growth, potentially surpassing the price $150 milestone on the 21st of March 2022.
When it comes to the long-term forecast for this cryptocurrency, GovCapital claims that AVAX may be trading for $550 by September 2024 and $1350 by the end of September 2026.
As for the prediction done by LongForecast, it is quite bearish when compared to the upper two. Yet, their forecast also indicates the continuous growth of Avalanche. According to them, Avalanche is going to continue growing, but at a slower rate than before. By the end of 2021, Avalanche might reach a trading value of $107. As time passes by, AVAX is thought to continue its growth, possibly ending the year 2022 with a price of $160. To wrap it up, they believe that AVAX is likely to be trading at a price of $238 by October 2025.
Crypto Academy Avalanche (AVAX) Price Prediction
We at CryptoAcademy tend to do our own research when writing about a crypto project. After hours of research and analysis around Avalanche, we came up with our forecast.
Avalanche (AVAX) Price Prediction 2021
The year 2021 has been crazy for Avalanche, but we have three months left before the year ends. As we get into the fourth quarter of the year 2021, Avalanche gets closer to launching some very important projects such as its wallet. We believe that Avalanche might experience a small drawback on its price in October, followed by another huge bull run which might lead to AVAX setting another all-time high by possibly hitting the price of $155.
Avalanche (AVAX) Price Prediction 2022
According to our forecast, Avalanche might continue to grow even further, reaching a potential price of $200 by February 2022. Yet, this is the highest this crypto will be in a while since our forecast shows a dip in the price of AVAX. We believe that after Avalanche hits the price of $220, it is likely to drop to $170 in a matter of weeks. By the end of the year, Avalanche may recover, leaving it with a price between $180-$195.
Avalanche (AVAX) Price Prediction 2023
After a messy year, Avalanche might see a more stable year. In 2023, AVAX is thought to experience smaller price movements, leaving it with +-10% monthly price changes. We believe that Avalanche is likely to enter the year with a trading value of $190 and close it with a price above $240.
Avalanche (AVAX) Price Prediction 2024
Similar to 2023, we believe that the year 2024 will be quite quiet for this cryptocurrency which is likely to experience small price movements once again. However, this is likely to change by the second half of the year, especially the fourth quarter of 2024. During this time, we believe that Avalanche might enter another bull run, possibly reaching the price of $330 by the end of the year.
Avalanche (AVAX) Price Prediction 2025
It is believed that Avalanche may continue its bull run even further, potentially reaching new heights in early 2025. As we get into January 2025, AVAX is likely to experience a tiny drawback before aiming for the $500 target. Our prediction shows us that AVAX might leave the second quarter of the year 2025 with a price of $540 before dipping. By the end of 2025, we believe that AVAX might be trading at $610 per coin.
Avalanche (AVAX) Price Prediction 2026
Moving onto the year 2026, we believe that AVAX might experience growth during January and February, even though at a slower rate. By the end of February, we predict that AVAX may experience yet another dip, one bigger than its previous ones. However, it might not take long for the coin to recover and get back on its feet. We believe AVAX is likely to end the year with a price between $560-$820
How To Buy Avalanche (AVAX)?
You can buy Avalanche in 3 easy steps:
Step 1: Create a Cryptocurrency Exchange Account
Buying Avalanche is as easy as it gets. First off, you have to decide whether you want to acquire such cryptocurrency through a cryptocurrency exchange or a Peer-to-Peer (P2P) transaction. We highly recommend you use a cryptocurrency exchange.
- If you want to buy Avalanche through a Peer-to-Peer transaction, you are required to create a wallet that supports AVAX. Some wallets that support Avalanche are MetaMask, Ledger, Coin98, and Avalanche Wallet. After doing so, use your wallet address as the destination of the AVAX coins that you are receiving after reaching an agreement with an individual who is willing to sell their AVAX coins.
- On the other hand, to buy Avalanche using a crypto exchange, you first need to open an account on the exchange of your choice. Before doing so, make sure that that exchange has AVAX listed on its platform.
Step 2: Deposit Funds on Your Account
After you are done with the first step, promptly verify your account and move on to the financial part. Now, you will need to fund your account to be able to buy AVAX. There are many ways to deposit funds onto your account and they all vary from exchange to exchange. Yet, most exchanges include payment methods such as bank transfer, credit/debit cards, or Paypal.
Step 3: Buy Avalanche
When you are done with funding your account, locate a market pair that includes AVAX. Some examples of that would be USDT/AVAX, TUSD/AVAX, BUSD/AVAX, and ETH/AVAX. After you locate the desired market pair, simply enter the amount of AVAX you are interested in purchasing and click on the “BUY” button.
Now, you are an official AVAX holder (HODLer), however, there are numerous ways to store your coins. Some people store them into easily accessible wallets known as hot wallets, while some others use cold wallets to do so. Cold wallets are considered to be safer since they are completely offline, while hot wallets are usually easier to use. These days, most exchanges have their own wallets, providing their users with an easy way to store their crypto.
Frequently Asked Questions (FAQ)
Is Avalanche (AVAX) a good investment in 2021?
Yes. According to numerous market predictions and even our own forecast, investing in Avalanche today might leave you with huge profits in the future. We believe that AVAX isn’t likely to fall under its current price in the following months.
Will Coinbase list Avalanche (AVAX)?
Probably. As of right now, AVAX is not listed on Coinbase. The main reason for this is believed to be the fact that Avalanche has a lot of elements that could classify it as a security. That being said, Coinbase is not interested in messing with projects that are not supported by the SEC. However, as regulators announce new laws and terms that point out what is considered a security and what is not considered a security, Coinbase might list AVAX.
Where to buy Avalanche (AVAX)?
Because of the above-mentioned issue, Avalanche is yet to be listed in some major exchanges. However, that is supposed to happen sometime soon since AVAX is one of the biggest cryptocurrencies out there. At the time of writing, the best exchanges that have listed Avalanche are Gate.io, BitPanda, and Binance.
- The ‘Ethereum-Killers’ have seen enormous growth throughout the past months.
- Avalanche, a smart contract cryptocurrency, was launched in late 2020.
- This cryptocurrency has a maximum supply of 720 million, with more than 220 million currently in circulation.
- More than 225 projects are currently operating on the Avalanche blockchain.
- The Avalanche blockchain is split into three parts. They are known as the X-Chain, the P-Chain, and the C-Chain.
- AVAX is believed to continue its rapid growth until the end of February 2022.
- All in all, AVAX might prove to be a very profitable investment.