Sentiment has turned against many of the leading altcoins and AVAX , the native token of smart contract platform Avalanche, has fared worst than most with a 10% drop today (6 April).
A number of factors may be coming into play: the US Federal Reserve making hawkish noises, high tech stocks also taking a beating or perhaps it is the deepening of the crisis in Ukraine that is unsettling what is already a volatile and sensitive market.
Other altcoins to suffer include: Solano ( SOL ) is down 9%, Cardano ( ADA ) down 8%, Polkadot ( DOT ) down 8% and Ethereum ( ETH ) down 6%.
Avalanche’s vibrant decentralised application (DApp) ecosystem and big-name collaborations helped AVAX surge from below $4 at the start of 2021 to above $100 by the end of the year.
So far 2022 has been a turbulent year for the coin and it is now 25% off its peak this year in January.
What is the AVAX coin price prediction for the rest of 2022 and beyond? What is a realistic target price? In this article, we will look at why the platform is seen as a potential challenger to smart contract platform leader Ethereum ’s top spot.
Avalanche outlook: World’s fastest blockchain network?
In the blockchain world, scalability and speed are among the main technical hurdles for decentralised finance (DeFi) projects to go mainstream.Smart contract platforms like Avalanche ( AVAX ) and Solana ( SOL ) have been chipping away market share from frontrunner Ethereum ( ETH ) by offering users lower gas fees and faster transactions.
According to its website , Avalanche claims to be the fastest smart contracts platform as measured by time-to-finality.Finality is the time taken by a blockchain network to validate a transaction and guarantee its execution.
Proof-of-work chains Bitcoin ( BTC ) and Ethereum ( ETH ) (soon migrating to a proof-of-stake consensus) take 60 minutes and 6 minutes, respectively, to achieve transactional finality.Avalanche, which uses the proof-of-stake consensus, achieves this in less than two seconds, according to its website .
[said] Avalanche in its whitepaper.
Avalanche said its unique consensus engine allows it to achieve fast finality without compromising decentralisation.On Avalanche, each node polls a small randomly selected set of neighbour nodes to validate transactions and arrive at consensus.The network also achieves transactional throughput of over 4,500 transaction per second (tps), compared to Ethereum’s 14 tps, via its three built-in blockchains : Exchange Chain (X-Chain), Platform Chain (P-Chain) and Contract Chain (C-Chain).
The X-Chain is a decentralised platform for trading digital smart assets.The P-Chain coordinates with network validators and enables the creation of new subnets.
The C-Chain facilitates the creation of smart contracts.
This brings us to another feature of Avalanche: subnets .One of the network’s core features is the ability to create new blockchains.Each blockchain on Avalanche is validated by one subnet.Subnets allow the creation of customisable chains for different use cases where network validators can choose to validate a particular chain within a given subnet.
“If a validator doesn’t care about the blockchains in a given subnet, it will simply not join that subnet.This reduces network traffic, as well as the computational resources required of validators,” said Avalanche on its whitepaper .
[said] Emin Gun Sirer, CEO and founder of Ava Labs, in an interview with The Defiant.
Avalanche is also among new layer 1 networks that are compatible with Ethereum Virtual Machine (EVM), which means that Ethereum developers can deploy existing DApps to Avalanche.
What is Avalanche (AVAX) coin?
AVAX is the native coin on the Avalanche platform.
It’s used for staking , governance and paying transaction fees on the network.AVAX is also required by users to create a new subnet and join a subnet.
Avalanche requires a validator to stake a minimum 2,000 AVAX for at least two weeks.Delegators who want to participate in staking can choose to stake with an existing validator by committing a minimum of 25 AVAX.
According to its https://assets.website-files.com/5d80307810123f5ffbb34d6e/6008d7bc56430d6b8792b8d1_Avalanche%20Native%20Token%20Dynamics.pdf , the AVAX token has a capped supply of 720 million coins.All processing fees on Avalanche are burned to increase the scarcity of AVAX.
Avalanche said that while AVAX is capped, the rate at which the coin reaches its maximum capacity is subject to governance.
Currently, the circulating supply of AVAX stands at over 266 million, while its current total supply exceeds 395 million, data from CoinMarketCap showed as of 15 March 2022
AVAX news: Corporate collaborations
Avalanche has attracted global corporations.Payments giant Mastercard and consulting company Deloitte have agreed partnership deals with its Ava Labs research team.
In November 2021, Deloitte signed a deal with Ava Labs to develop a new disaster recovery platform that uses the Avalanche blockchain to help governments get federal emergency funding.
Avalanche said the Close As You Go (CAYG) platform will provide quick processing and authentication of disaster reimbursement applications to the Federal Emergency Management Agency (FEMA), minimising fraud, waste and abuse.
What is your sentiment on AVAX/USD?
Later in December 2021, Ava Labs was selected by Mastercard to join its Mastercard Start Path Crypto, a scheme dedicated to explore new blockchain technology development opportunities.
“Whether it’s enhancing financial freedom or a new value-added service using stablecoins , we believe our new cohorts of Start Path crypto and digital assets companies combined with Mastercard’s expertise in the space will accelerate access to new ways to pay and prioritise choice for consumers and businesses,” said Jess Turner, executive vice president of New Digital Infrastructure & Fintech at Mastercard.
[added] : “My goal in life is not to try to compete with Bitcoin and replace the dollar.
My goal in life is not to compete with Ethereum.My goal in life is to build the best platform for digitalising all of the world’s assets.Everything that lives on Wall Street that is on a balance sheet should be on a blockchain.
It should be traded around the world easily without any boundaries.That is the vision we have been building.”
Avalanche is also active in the NFT space.Official Major League Baseball (MLB) card manufacturer Topps is partnering with the network to develop an NFT marketplace to sell official MLB NFTs.
The Topps NFT marketplace on Avalanche also sells NFTs from Germany’s Bundesliga .
Digital Collectibles are finding a new home on — Avalanche ???? (@avalancheavax) [#Avalanche] .
Check out [@ToppsNFTs] latest drop, the [@Bundesliga_EN] 2020-2021 Season Celebration [#NFT] Collection ???? On sale now at [August 11, 2021]
AVAX coin analysis: ‘Healthy’ volatility
According to the AVAX coin price chart, it was trading at close to $88 on 6 April.
AVAX coin was the tenth biggest cryptocurrency, with a market capitalisation of about $23.44bn, according to CoinMarketCap.
In the previous year, the AVAX token price had surged over 107% from about $3.66 on 1 January 2021 to over $113 on 31 December 2021 an increase of nearly 3,000%.Those glory days seem to be behind it now having dropped more than 40% of that New Year’s value.
The coin had hit a 52-week low of $9.34 on 22 June 2021 – not long after China banned crypto transactions and mining.
But the rebound from the crash was strong.AVAX/USD hit an all-time high of $146.22 on 21 November 2021.
In 2022, the cryptocurrency market has been facing bearish undercurrents with market participants growing increasingly wary of a potential “crypto winter”, similar to the one seen after bitcoin hit a then all-time high of nearly $20,000 in December 2017.
After seeing a brief jump in prices in early February 2022, bitcoin and ether have failed to break their resistance levels and have started to fall.
Concerns of interest rate tapering by the US Federal Reserve has forced Institutional investors to rejig their investment strategy.
However, Sirer remains “super bullish” on the blockchain industry despite bearish sentiment in 2022.
AVAX price prediction: Will the price return to its all-time high?
According to a short-term AVAX crypto price prediction from Coin Codex (as of 6 April), the coin could rise 2% to $89.5 by 11 April.CoinCodex added that technical indicators showed that current (6 April) sentiment for AVAX as “bearish”, while the fear and greed index was “neutral”.
“Based on our Avalanche forecast, it’s now a bad time to buy Avalanche,” said CoinCodex.
Meanwhile, the Avalanche price prediction from Wallet Investor (as of 6 April) said it could be an “awesome long-term investment”.
The algorithm-based forecaster expected the price to reach over $173 in 12 months and up to $391 by April 2025 and $474 by April 2027.
According to Price Prediction ’s AVAX/USD projection, the coin could hit an average price of $118.3 in 2022, $377 in 2025 and up to $2,193 in 2030.
The Avalanche crypto price prediction from Digital Coin expected the token to trade at $111.8 in 2022, $173 in 2025 and over $402 in 2030.
When looking for avalanche coin price predictions, bear in mind that analysts’ and algorithm-based predictions can be wrong.Projections are based on fundamental and technical studies of the AVAX past performance, which offers no guarantee of future results.
It’s essential to do your own research.Remember that your decision to trade depends on your attitude to risk, your expertise in the market, and your investment portfolio spread.You should never invest money that you cannot afford to lose.
FAQs
AVAX surged over 107% from about $36 on 22 February 2021 to over $75 on 21 February 2022.Whether the coin is a good fit for your investment portfolio depends on your circumstances and risk tolerance.You should estimate the level of risk you are ready to take before investing.
According to Price Prediction’s avalanche prediction (as of 6 April), the coin could hit an average price of $118.3 in 2022, $377 in 2025 and up to $2,193 in 2030.
Remember that analysts’ and algorithm-based AVAX predictions can be wrong.
According to Price Prediction (as of 6 April), the AVAX price was expected to surpass $1,000 in 2028..
