The question on every cryptocurrency investor’s mind nowadays is, “Does Avalanche cryptocurrency have a future?”
Launched in 2020, Avalanche (AVAX) has caught the eye of the masses owing to its versatile infrastructure, transaction speed, and secure consensus model.
Avalanche’s biggest distinguishing factor is that its primary network consists of at least three built-in blockchains:
X-chain which is responsible for the management, creation, and transaction of tokens on the network.
C-chain which oversees all the smart contracts.
P-chain also known as the Platform Chain is responsible for the coordination of all validators and management of the staking mechanism.
Avalanche boasts lightning-fast transaction speeds allowing:
· 4,500 transactions per second and a finality clock of 3 seconds versus
· Bitcoin’s 7 transactions per second and a 60-minute-long finality and,
· Ethereum’s 15 transactions per second and a 10-minute finality.
Secure Consensus Model
Avalanche also has a more secure consensus model because an attacker would need to:
· take 80% of the network to launch an attack versus
· Bitcoin’s 51% of all the computers and,
· Ethereum 2.0 51% of all the stake tokens to attack the network.
Now, in order to understand the future of AVAX, let’s dive into some of the economics of the coin.
AVAX Tokenomics — What’s Behind the Recent Price Hikes?
By design, Avalanche engineers created the entire system to be a deflationary asset because of the 720 million token cap.
127 million of these coins were distributed to early investors at a price of $0.50. Fortunately, all these coins can’t just be dumped at once and are subject to an unlocking schedule which hopeful investors should be aware of.
To add on, the Avalanche engineers and team that worked on the project were also given 20% of the coins meaning there are a good number of coins already in circulation.
The recent price hike we witnessed is the result of a $180 million dollar incentive program that Avalanche launched as a form of advertising. Literally, the company gave away $180 million dollars worth of free tokens, which isn’t something unusual in the crypto world. The result of this coin distribution was a price spike which saw the token reaching an all-time high of $134.
AVAX’s market cap is holding out fairly well and has managed to retain a presence on CoinMarketCap’s top 20 cryptocurrency list.
Well, what are the experts saying about AVAX? Will it continue on a steady upwards trajectory or taper off eventually?
Avalanche Price Predictions According to the Experts
Lark Davis, an avid crypto investor gave a conservative prediction stating that AVAX would reach $100 by 2025. AVAX did rise and it happened way sooner than the prediction. In fact, the token price broke the $100 price point on November 18, 2021 — four whole years earlier than anticipated!
Folks over at Wallet Investor have an even bigger forecast and anticipate the price of AVAX tokens to scale up to $240 by 2027.
Experts at Changelly.com forecast that for 2022, AVAX will trade at around $20.00. In 2023, based on the previous year’s prices, AVAX stock might enjoy an average trading price of $51.51. In 2024, this is expected to go up to $74.41, then $107.08 in 2025, $155.61 in 2026, and finally $264.13 in 2027.
As can be seen, the majority of experts are leaning towards a bullish future for AVAX. Again, because there are so many factors to consider, only time will tell what’s in store for Avalanche.
NB: The information provided in this blog is for educational purposes only. Please consult with a qualified financial expert prior to making any investments in cryptocurrency.