Avalanche was launched by Ava Labs in 2020. The network is termed as the platform of platforms as it aims to facilitate the creation of custom blockchains. At the time of writing, AVAX trades at a price level of $32.74. The cryptocurrency has picked up the bulls after the market crash and the uptrend is going strong. The price of the cryptocurrency has gained by 40% in the past twenty-four hours while the weekly performance shows a positive change of 90%. If the bullish momentum persists, it may soon break the ATH recorded during the 2021 bull run at $59.94.
Why Avalanche?
Ethereum is the queen of the market – pioneering the DeFi and smart contract technology. Ethereum because of its reputation enjoys an unrivaled position in the market. However, Ethereum is also a victim of its fame and its technology. Having the first-mover advantage is not always advantageous. Ethereum and Bitcoin are the original cryptocurrencies – launched in a time when nobody knew what blockchain technology is. But as the world became more aware of the treasures that blockchain technology hides, increased adoption revealed problems of scalability with the networks.
The bull run of 2021 made it evident that Ethereum is not designed to handle the amount of activity it had – and; hence, a mass adoption. Many cryptocurrencies were designed to fill out the gaps that the queen has and offer an attractive alternative. But it is not easy to compete with the queen of the market and many have succumbed to the competition. Avalanche is one such cryptocurrency that is a competitor of Ethereum and offers much more.
The cryptocurrency has so far proven to be a strong competitor as it reached the top fifty largest cryptocurrencies in less than a year after its launch. Avalanche is currently the twenty-seventh largest cryptocurrency in the market with a capitalization of $5.38 billion.
Is AVAX a good cryptocurrency?
The performance so far is a testament to the potential that cryptocurrency possess. The platform is working on developing its own DeFi ecosystem – one that will rival that of Ethereum’s. In a short timeframe, many Ethereum-based DeFi projects have either migrated or integrated with Avalanche. Furthermore, the network also has plans of developing an Ethereum bridge which will enable the seamless flow of dApps to the network; hence, boosting it.
With such strong fundamentals, there may be little doubt about the future potential of Avalanche. Wallet Investor estimates the cryptocurrency to be operating at $38.58 in a year’s time. The price is expected to gradually rise to $155 in five years’ time. Digital Coin Price also predicts $100 to be crossed by 2026.
