Avalanche regards itself as the fastest platform for smart contracts in terms of time to finality. The platform is essentially a Layer-1 blockchain that is designed for the same purpose as Ethereum but fulfills the job in a completely different manner. The native platform of AVAX aims to compete with Ethereum in providing smart contracts but it promises the scalability that the queen of the market lacks. The platform is sharded into multiple chains – X, C, and P chain – each of which handles a specific purpose in the ecosystem. This division allows Avalanche to provide the scalability it promises – processing up to 6,500 transactions per second.
Here’s why Avalanche can reach towards the moon during 2022:
1. Ecosystem Development
Avalanche has one of the most vibrant ecosystems in the market filled with unique and interesting projects. Granted that the network has not been as active as some protocols in terms of ecosystem development during the previous year, that is expected to change in 2022. Some of the anticipated games on the platform are a DEX TraderJoe, a stablecoin automated market maker by the name of Platypus, Defrost Finance, and more.
2. Solid Footing in the market
The protocol is led by a reputable professor from Cornell. It is one of the ten largest cryptocurrencies by market capitalization while the total value locked on the network has reached that of Binance Smart Chain and can very soon take over BSC. In terms of TVL, the platform is the fourth largest as of now. The network is also launching what it calls subnets – which are essentially mini blockchains over AVAX that enable applications to operate independently without overburdening the entire blockchain.
3. Avalanche’s Sustainability
High energy consumption is one of the cons of the crypto market and it is also one of the significant reasons why some investors shy away from the market. Avalanche may be considered one of the green blockchains as the Crypto Carbon Rating Institute (CCRI) released a report about the environmental impact of various blockchains. According to the report, AVAX blockchain uses only 0.0005% of the energy utilized by BTC and 0.0028% of ETH’s energy consumption. Out of the eight blockchains analyzed, AVAX had the third least energy consumption.
At the time of writing, Avalanche stands at a price level of $94.90. The price has experienced an increase of more than 10% during the day.
