It's been over a year and a half since we last heard of avalanchebut now, esteemed crypto analyst Guy Turner is back, exploring Avalanche's growing potential that could eclipse its competitor, Ethereum.
Intrigued? Read on to find out the reasons behind this bold prediction and see if the Avalanche are ready to make a comeback.
Avalanche's growing potential
Avalanche raised $60 million through various ICOs in 2019 and 2020, followed by an additional $580 million from VCs in 2021 and 2022. Despite facing challenges, such as the Tera collapse in May 2022, where the foundation lost up to $200 million, the Avalanche has proven its resilience.
Avalanche has established strategic partnerships with Alibaba, Shopify, and Amazon's AWS, making it attractive to major institutions and e-commerce giants looking to drive mass adoption.
Avalanche continues to incorporate innovations like Bitcoin Bridge, the expansion of the Pangolin index, and collaborations with game studios like Gunzilla. Partnerships with major players like Alibaba, Shopify, and Amazon's AWS further validate Avalanche's potential.
Also read: Citi Bank, WisdomTree and Wellington bet on the tokenization of private funds in Avalanche
AVAX token dynamics
AVAX, Avalanche's native token, has a maximum supply of 720 million. Validators stake a minimum of 2000 AVAX, with staking rewards currently around 7.5%. Avalanche's unique approach to transaction fees involves burning AVAX, with over 4.1 million tokens already burned.
Challenges and controversies
Despite the successes, Avalanche faced challenges, including accusations that it paid law firms to direct regulators toward its competitors, causing a temporary market crash. Incidents such as the Stars Arena exploit and layoff announcements also marked periods of turbulence.
Avalanche subnets are gaining popularity for various uses, attracting the attention of regulators, especially if certain subnets involve tokenized assets or other financial instruments. The regulatory landscape in the crypto space is still evolving and compliance errors could impact Avalanche's long-term success.
And continues!
Avalanche faces competition from established platforms like Ethereum, Binance Smart Chain, Solana, etc. To maintain or expand its market share, Avalanche needs to continually innovate and differentiate itself.
Trade-offs between scalability and security, such as increasing hardware requirements for higher TPS, could pose challenges. Balancing decentralization, security, and scalability is crucial to the success of any blockchain network.
Read more: Top 6 Altcoin Picks with 5-10x Earnings for the 2024 Crypto Bull Run
What does the future hold?
Avalanche's recent developments, partnerships and innovations drove a significant price increase. Technical analysis suggests possible bullish continuation, with AVAX possibly reaching $70 or higher in the coming weeks.
Avalanche co-founder Kevin S has updated on โinteresting developments" taking place. He affirmed the community saying:
โMuch more interesting research and engineering work is being done in Avalanche right now than in virtually any other ecosystem (including L2). Bold statement, but honestlyโฆ it's true. Amazing work on interoperability, development tools, performance work, etc.
In conclusion, while the Avalanche faces challenges, their trajectory looks promising. With strategic partnerships, continuous innovation, and an engaged community, Avalanche not only competes but aims to redefine the future of decentralized finance.
