The blockchain is at the bleeding edge of modern technology in a market that is predicted to accumulate $20 billion in revenue by 2024. Because this market is growing so rapidly, a large number of companies and individuals have decided to jump in and start investing in cryptocurrencies. One of the first things you will notice if you’ve decided to get into investing in this area is that there are different options from which to choose. There are famous coins like Bitcoin or Ethereum, and then there are entirely new platforms that are thinking outside the box and unlocking new possibilities. Today, we’re going to break down a question that may be more complicated than it looks: “What is Avalanche crypto?”
Avalanche, founded in 2020 by a group called Ava Labs, is the new kid on the block of cryptocurrencies. Already claiming to be the fastest smart contracts platform in the blockchain industry when measured by time-to-finality, the company is setting itself apart with its lower costs and greater energy efficiency.
Avalanche is powered by three different blockchains, making its immense speeds possible and giving it a great deal of scalability. This new blockchain has received strong support from a dedicated community which can be found on the Avalanche Reddit that boasts over 30,000 current members. This community recently demonstrated its dedication when in June of 2021, the Avalanche foundation raised $230 million from the sale of their Avalanche coin (AVAX) (1). The avalanche crypto price, as with other coins, has been impacted by market changes but remains relatively strong and was the 11th biggest cryptocurrency on CoinMarketCap. Avalanche also has a growing list of NFT projects built off of its technology.
Many aspects set this new blockchain apart from its competitors, and there are many similarities that all cryptocurrencies share. Before buying or investing in a particular crypto, you should have some idea of what its unique aspects are and how this particular token has been performing in the economic and public opinion markets.
The first thing you need to understand is where to buy Avalanche crypto. Investing in these technological innovations is not quite as simple as buying books from an online store. There are a couple more steps to the process which you’ve got to take before you can buy Avalanche crypto. Before you even purchase a coin, you will need to set up a digital wallet to hold your purchases on the blockchain and connect it to the Avalanche network. This can be accomplished using an external wallet such as MetaMask which can be connected within minutes, or it can be done using the Avalanche wallet which was specifically designed for the Avalanche platform to securely hold all of your Avalanche assets (2). Once you’ve set up your digital wallet, you’re then going to have to find out where to buy AVAX coins.
Avalanche Vs Ethereum
They are available at special exchanges that focus on cryptocurrencies. Several exchanges are popular for purchasing these specific tokens and they include Binance (3), OKX (4), and CoinTiger (5). By setting up your account with these exchanges, you can purchase Avalanche coins which will then be added to your digital wallet for later use.
One of the more in-demand cryptocurrencies available today is the Ethereum platform that experienced a surge in users as it became the most used blockchain network of them all. This inspired other developers to create their blockchains that could try to compete with the Ethereum network. One of the problems with the Ethereum platform is that this high usage is starting to harm the blockchain’s performance and it has required the company to start charging higher and higher fees for every transaction. This is where competitors such as Avalanche see an opportunity.
One of the biggest factors in the debate of Avalanche vs Ethereum is speed. In this category, Avalanche is a clear winner with the ability to process over 340-times the number of transactions that can be processed by Ethereum in the same amount of time (6). Avalanche is also distinct from a platform like Ethereum because it is designed with flexibility and scalability in mind, allowing users to create their custom blockchains that run on the Avalanche network and providing a platform that is still fully compatible with the Ethereum blockchain which possesses the advantages of trust and brand recognition.
The AVAX token has been performing remarkably well in the markets, outpacing nearly every top 10 cryptocurrencies with a performance of +3,100% in 2021. A huge part of this amazing growth in the AVAX price was because the large consulting firm Deloitte announced a partnership with Avalanche to develop a platform for state and local governments to assist with demonstrating federal funding during natural disasters and public health emergencies (7). Partnering with a large, global organization like Deloitte made investors see the true potential of Avalanche to unseat Ethereum as the primary provider of industrial blockchain technology. At the end of 2021, WalletInvestor released their Avalanche price prediction for 2022 in which they forecast increasing growth at a slightly slower rate than the previous year with the AVAX token price being about $275 at the end of the year (8).
Overall, the Avalanche crypto price predictions are projecting large amounts of strong growth over the next few years as the forecast from Digitalcoin demonstrates. According to their predictions, Avalanche is a profitable investment and is recommended for purchase. Many factors are driving the potential for the AVAX price to rise but one of the biggest of those is the competition with Ethereum. If Avalanche can succeed and become another trusted and recognized blockchain network, we would expect to see a great deal of upward momentum and profit over the next few years from the AVAX token. The AVAX NFT market may also help it establish itself in the crypto community as it continues to mature.
It always makes sense to understand the latest buzz surrounding any particular investment so that you can try to get into the fundamental factors that are likely to drive the investment in a profitable or not-so-profitable direction. One important piece of Avalanche crypto news is that recently, an AVAX Coinbase executive predicted continuing growth for newer tokens such as AVAX. In other blockchain news, the last weekend of January 2022 showed big growth for Avalanche with the price jumping 11.8% (9). One of the important factors surrounding this recent price jump is the specter of government regulation. China has banned cryptocurrencies and Russia has contemplated doing the same.
Meanwhile, in the US, there are expectations that a plan on potential new regulations on cryptocurrencies will be released in February (10). To combat these coming regulations, several cryptocurrency firms have started lawsuits and some Venture firms have started lobbying to have an impact on cryptocurrency regulation. How this all could impact the Avalanche blockchain is still to be determined, but it is important to understand as the world of cryptocurrency rapidly develops.
Before investing in a particular cryptocurrency, it also makes sense to peruse an avalanche crypto review from other purchasers and investors to understand both the pros and the cons of owning a token like AVAX. One review emphasizes the trust that developers appear to have placed in the Avalanche platform as seen from the fact that over 150 Avalanche NFT projects are running on the blockchain (11).
Overall, the consensus of reviews is positive about Avalanche crypto and its potential for growth in the present and the future. Investors are generally positive about the unique technology that provides a foundation for the platform, its scalability, and Avalanche’s interoperability with other blockchains. This last category is crucially important because many developers would understandably be hesitant to commit to building a project entirely based on a single, new blockchain. However, these fears have been assuaged by Avalanche’s interoperable design which means that your projects are portable to other blockchains. This means that more developers can be encouraged to invest their time and talent into the platform, which will result in more projects on the network and more growth for Avalanche.
As we’ve discussed, once you have decided on purchasing a cryptocurrency, you will first need a digital crypto wallet that suits your particular needs. For example, if you want to earn a passive income from your holdings in a coin such as Avalanche, you will need to make sure your wallet is compatible with staking. You will also want to decide if a web-based wallet or a mobile wallet. This question about the best Avalanche wallet is something that has been asked repeatedly on the Avalanche crypto Reddit and different users have different answers because every situation is unique.
If you are looking for a web-based option, the Avalanche wallet app may be the solution for you. Designed specifically for the Avalanche platform, you can easily create your account and get started with Avalanche. If you wish to utilize a wallet that provides both Desktop and mobile support, you might look to the Exodus wallet Avalanche, which will be compatible with your device (12). Finally, if you are looking for an Avalanche wallet extension that is compatible with your web browser (for example, Chrome), you might take that into account as you seek out your ideal wallet choice.
In the end, there are many options that you can take advantage of in order to start investing in Avalanche or learning about Avalanche wallet skating.