Avalanche (AVAX): What is it? Is it a good investment?

Avalanche is one of the best ecosystems in the cryptocurrency market and the volume of transactions is constantly growing. Many investors have decided to buy Avalanche both to support the project and out of pure speculation.

This article provides detailed information that satiates your thirst to know about Avax as a cryptocurrency, the features it possesses, the current worth, and how safe it is to invest among other important things. 

What is Avalanche?

Avalanche is much more than a cryptocurrency, we are talking about a protocol that allows you to generate new decentralized applications (dApps), new Blockchains, and new crypto projects.

The goal of Avalanche’s project is ambitious: to evict Ethereum from the throne of the most used protocols in the world for the creation and development of new Blockchain ecosystems.

At the base, there is a valid project, very fast and cheap, but it will take some time even to reach the volumes of Ethereum.

On Avalanche, anyone can launch or trade any form of asset and control them using smart contracts.

The developers have worked hard on this technology and have managed to balance affordability, security, and scalability.

The history of Avalance and how it came into light 

Ava Labs, the founder of Avalanche successfully launched the Avalanche blockchain in September 2020. Avalanche got into light and became known in the cryptocurrency space, with Avalanche TVL.

Avalanche TVL is still rising across Avalanche decentralized applications (DApps) and autonomous blockchain. It is known to be powered by its native token Avalanche (AVAX) alongside multiple consensus mechanisms.

The Avalanche blockchain currently can process over 4,500 transactions per second, and Avalanche currently aims to be fast, secure, versatile, accessible, and affordable. Not restricted to that alone, Avalanche is an open-source project which means anyone can view and contribute to the platform’s code.

Unique features of Avalanche

Here are some features of Avalanche:

Transaction Fee Structure 

The transaction processing costs differ based on the type of transaction and Avalanche’s network congestion. However, all fees are burned and removed from circulation to make AVAX scarcer. 

Users of Avalanche vote to make decisions concerning the Avalanche transaction fee thereby making AVAX fees liable to change and modification.

Coin Creation Rate

Basically, the maximum supply of AVAX is confined at 720 million tokens, however users of AVAX control and preside on how fast new coins are being minted. AVAX holders can also control the rate at which new coins are created by carrying out a voting exercise to adjust the amount of AVAX which is being paid as remuneration for adding a new block to the Avalanche blockchain.

Participation Incentives 

A high degree of uptime and a rapid immediate response can at times create an increase in the amount of AVAX rewards that could be earned by a network participant for processing AVAX transactions.

Consensus Mechanism

Transactions being carried out on the Avalanche blockchain are subject to a system of confirmation by making use of a unique method that warrants many small and random subsets of network participants to confirm transactions before such transactions are considered perfect and finalized.

How much is Avalanche worth?

AVAX price currently is $98.93 with a 24hour trade volume of $2,173,050,931. It also has a circulating supply of over 267 million AVAX coins and also a total supply.

Avalanche’s thriving decentralized applications (DApp) have mightily helped AVAX to wave higher from below $4 in early 2021 to above $100 at the end of the same year. And as of the last days of February 2022, AVAX has been rated among the top ten cryptocurrencies according to market capitalization.

Where to buy Avax?

Binance

Binance is globally known as one of the most tested and trusted cryptocurrency exchanges where users can purchase AVAX easily. Users who purchase AVAX on Binance do enjoy a degree of lower exchange fees combined with increased liquidity which makes buying and selling quicker and easier.

Uphold

Uphold is one of the top renowned crypto exchanges in the U.S that enhances trading needs across various cryptocurrencies not excluding AVAX. It offers features that are easy to use and operate to allow users who are interested in buying AVAX to carry out their transactions intuitively.

BitPanda and Gate.io

These are also reputable trading platforms where AVAX could be purchased, only that BitPanda is opened currently for European Union residents only.

Avalanche (AVAX) contract address

Below is the contract address for AVAX.

Avalanche C-Chain: FvwEAhmxKfeiG8SnEvq42hc6whRyY3EFYAvebMqDNDGCgxN5Z

BNB Smart Chain (BEP20): 0x1ce0c2827e2ef14d5c4f29a091d735a204794041

Moonbeam: 0x4792c1ecb969b036eb51330c63bd27899a13d84e

Is Avalanche (AVAX) a good investment?    

Avalanche has made early buyers a lot of money and wealth, with a 34X return just over its first 12 months.

It is then quite predictable that AVAX could keep up its winning ways with increased adoption of its platform if consistent. 

However, the safety of crypto coins revolves around a lot of considerable factors. It also depends on the level of an individual’s risk tolerance. Not that alone, you should be well informed and deeply enlightened about how cryptocurrency works before you dangle into it. 

As various people have good testimonies about it is the same way a whole lot of people have otherwise. But there are predictions that Avax will move forward and generate big returns.  

This prediction is evident in the adoption of the interconnected blockchain(X-Chain, P-Chain, and C-Chain) which are capable of driving increased interest. And rising interest would also almost certainly result in a rising price for the AVAX token.

So far, over 150 projects are currently running on Avalanche. Furthermore, according to Defi Llama, Avalanche has more total value locked on its platform than some other counterparts, obviously proving that serious decentralized finance applications are opting for AVAX. Among these include a popular lending app, Aave (AAVE), several decentralized exchanges, and Immunefi, a Web3 bug bounty program among others. 

Avalanche (AVAX) price prediction

Most crypto investments are on a 50:50 assurance basis. It, therefore, means that there is neither a full success nor a full failure guarantee. However, for Avalanche, there have been positive predictions about it from experts:

• TradingBeasts gives a prediction of $940.939 per AVAX token in 2026.
• DigitalCoinPrice gives a prediction of $270 per AVAX token by the end of 2025.
• PricePrediction predicts that the price of the AVAX token will rise to $261.53 by the end of next year.
• GovCapital has a 1-year forecast of $324.67 per token for AVAX.

Note that these predictions don’t totally confirm that it can’t turn out bad.

So, before you take a step to invest in Avax, know that you are taking a risk. There’s always a level of possibility that unknown difficulties could throw a wrench into the Avalanche project. Hence, just as some cryptocurrencies had several outages recently, Avalanche may stagger and waver as it continues to grow.

Conclusion

There are lots of smart contract cryptocurrencies currently in the market, and more will surely still arrive. This means there is a competitive space, and just as the way Avalanche overtook older cryptos like EOS (EOS) and Tron (TRON) there is every possibility that newer players may one day emerge with different, unique, and faster technology.