Should You Invest in Avalanche?

The Avalanche token is building momentum, so which side of the mountain do you want to be on? We are here to break the Avalanche down, including its price, network security, and value.


  • AVAX
    Avalanche
  • Price
    $ 28.42
  • Change
    6.06%
  • Marketcap
    $ 7.67 B
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If you are looking into cryptocurrency, Avalanche is one with unique potential, but you might be wondering about just what those advantages mean, and can it compete for your investment?

These questions are crucial in the current crypto landscape, and we will take you through a straightforward but thorough analysis to answer.

By the end of this article, you should have enough confidence to feel like you can make an informed decision on whether investing is going to be worth it for you.

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What is Avalanche (AVAX)?

Avalanche is a smart contracts platform that acts as a space for decentralized applications and other networks on the blockchain.

A smart contract program is like a holder of a contract, where it keeps the terms of a transaction contract until the point when the conditions are met.

At that point, the program automatically executes itself, eliminating a middle-managing step that is inherent to normal contracts.

Putting it simply, Avalanche allows secure and decentralized crypto transactions at higher efficiency and lower cost owing to the automation inherent in smart contract programs.

Who Are The Founders of Avalanche?

Cornell Professor Emin Gün Sirer, the CEO of Ava Labs, is responsible for founding Avalanche in 2020.

Sirer had been contemplating the limitations of the existing blockchain protocols. As he attempted to solve these problems, he was led to create the Avalanche blockchain.

The problems of scalability and performance would lead to more problems in the future of crypto, which Sirer hoped his blockchain would solve and allow the creation of apps “that aren’t even possible yet.”

Sirer foresaw that the existing blockchain networks in use were insufficient to support the world’s assets as crypto continued to grow. As a result, he predicted short-term price levels would stagnate or slightly decline due to the limits of current blockchains.

How Many Avalanche (AVAX) Coins Are in Circulation?

The absolute total number of AVAX coins is 720 million; however, it has a circulating supply of 240 million.

The nature of cryptocurrency means that the number of coins in circulation will gradually increase over time to a finite amount. AVAX is early in its cycle with 360 million at the time of writing still waiting to go into circulation.

Avalanche coins are added to circulation through staking rather than mining. However, traditionally crypto-mining has been used in legacy cryptocurrencies, also known as the proof of work method.

With mining, anyone with a computer capable of using complex software to solve complicated math problems can use their computer to retrieve coins and then buy or sell them.

However, Avalanche uses a method known as staking or proof of stake. Rather than awarding coins to users who set up their computers to mine the blockchain, staking awards a percentage of coins to users who hold their supply of coins.

The purpose of staking is to lock the value of a certain number of coins, which secures the network and allows the distribution of new coins to users who stake their coins.

This method requires another user known as a validator. This user validates the ID of your coins and validates when you are starting and stopping your stake.

To stake AVAX coins requires you to put up a stake of at least 25 AVAX and put them up for at least 2 weeks.

Once you find a validator you are set to receive your reward rate of 9% of your stake minus the rate you pay your validator after the time your stake is put up.

The minimum delegation fee is 2% but can be higher.

How is Avalanche Network Secured?

3 built-in blockchains secure the Avalanche network. These blockchains are then validated and secured by the primary network, a subset of members who stake at least 2,000 AVAX coins into the primary network.

This method of securing the network by requiring anonymous members to stake AVAX coins allows the currency's value to be protected and the network to remain secure.

What Makes Avalanche Unique?

As a smart contract crypto platform, Avalanche is in a unique position as the 12th largest token. It boasts the ability to scale more efficiently and less expensively as a newer and leaner crypto platform.

A lot of the cryptocurrency space has had an ongoing decline this past year. This is in contrast to Avalanche’s value which has risen 21% month on month and exploded 6,255% since August 2021.

Ethereum is avalanche’s competitor token, the most used blockchain network, which has a similar function to Avalanche and has been around longer.

However, Avalanche distinguishes itself by remaining secure and decentralized while being more efficient and lower cost. This has the effect of increasing the number of applications it can adopt.

Avalanche's subnets enable transactions to be completed in a fast time. They can validate around 4,500 transactions per second (TPS), which is the highest TPS in the crypto world so far.

By contrast, Ethereum can only process fewer than 15 transactions per second. Ethereum is also grappling with higher gas fees, which complicates its ability to expand as the scale of transactions increases.

Avalanche has the advantage of learning from the struggles of legacy networks like Ethereum as it can overcome its bulkier proof-of-work counterparts.

Avalanche Alternatives

bitcoinBitcoin
$ 29,022.004.06%
ethereumEthereum
$ 1,941.913.64%
tetherTether
$ 1.000.06%
usd-coinUSD Coin
$ 1.000.05%
bnbBNB
$ 298.592.33%
xrpXRP
$ 0.407123.17%
binance-usdBinance USD
$ 1.000.18%
cardanoCardano
$ 0.5087944.2%
solanaSolana
$ 49.016.94%
dogecoinDogecoin
$ 0.0834664.03%

Should I Invest in Avalanche?

Investing in Avalanche is up to you, but we are asking you to strongly consider the possibility if you find these points compelling.

Avalanche is in a prime position to replace Ethereum in the future thanks to its lower fees, vastly superior transaction per second efficiency, and track record of continually rising in value month over month.

If you are looking to invest early in the next big cryptocurrency before it rises to the top, Avalanche is a very likely candidate to be able to do so long-term.

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