Avalanche is known for being in the top ten blockchains on coinmarketcap, usually fluctuating in the 8th and 9th positions. It gained a good rhythm in 2023, whose aftereffects are visible in 2024 as well. Avalanche has seen a 22% weekly increase and is expected to reach the $71 mark by the last quarter of this year. So, is Avalanche worth the hype? Let’s get into it.

Avalanche Marked Remarkable Deals During 2023

Based on the statistics, the Avalanche price is on a bull run regardless of the market situation. Even in the past week, Avalanche has hiked by 19.60%, where the price soared from up to $42, highlighting the stable growth. This stability will be maintained, as many analytics (including Chainlink) have predicted that the number will rise to $50 soon.

These continuous gains are related to their recent partnerships with companies like JP Morgan, Citi, etc. Another reason is because of the way altcoins are valued these days. Before discussing the value and characteristics of Avalanche, have a look at the top partnerships Avalanche had in 2023. Avalanche was the most preferred altcoin in 2023 because everyone saw the benefits it brings to the table.

Avalanche partnered with JP Morgan last year to connect Onyx with a permissioned Avalanche Evergreen subnet. When this news was out, the AVAX’s price jumped by 25%, surpassing the $22.75 value mark.

In a similar event, Avalanche partnered with Citii to create real-world asset tokenization initiatives. Citi is a global bank and preferred Avalanche’s AvaCloud to construct an application that can leverage the blockchain infrastructure for pricing and the execution of bilateral spot foreign exchange trades.

In October 2023, Avalanche also launched a blockchain database system called Firewood. Avalanche’s developer explained that this upgrade would solve the scaling issues of the blockchain network. It helps in the information filing more efficiently and provides management help to solve the scaling issues.

Should You Buy Avalanche Token?

Avalanche was launched in 2020 and is known as a competitor of Ethereum. It has a token called AVAX and uses smart contracts to work on projects. As AVAX’s prices continuously increased for some time now, it is understandable to get interested in buying it. Here’s a list of the pros and cons of Avalanche that will help you understand whether you should invest and whether it’s worth the hype.

Pros of Avalanche Blockchain

Architecture of Network : Avalanche is an open-source project known as fast, versatile, secure, affordable, and accessible. It can transact 45000 transactions per second, faster than any of its competitors, including Ethereum. It is composed of three blockchains and has 104 subnets. These subnets give it its main advantage, that is, being flexible. They are easily customizable, and because they don’t share the security, the subset won’t get compromised because of each other.Its distinguished architecture makes it resilient to attacks. In the case of Avalanche, the attacker needs 80% of the stocks, whereas, in the case of other blockchains, only 51% is enough to give access to hackers.
Adoption Rate : Avalanche, launched in 2020, has completed 1,254,253,300 transactions till now. During these four years, around 14,405,104 Smart Contracts have been deployed on the network. 2023 was crazy for Avalanche as it had the most transactions a network has seen, and collaboration with those big companies has played a role in this. It is capable of supporting many blockchain-based projects at the same time without compromising on any part.
Tokeonomics : Avalanche has a fixed maximum supply similar to Bitcoin, which helps in hyping the network. The other important feature is ‘Fees Burning,’ as it burns the total transaction or gas fees the network has collected compared to its competitors Solana and Polkadot, who only burn a portion. Burning fees help in the stability of the network.

Cons of Avalanche Blockchain

Questionable Network Design : Avalache’s network supernets are known for their flexibility, but they also have their disadvantage. It hurts composability because if we don’t have the required equipment with a specific set of features, it’s an issue.
Compromised Security : Avalanche has not set any slashing penalties for nodes. It has rules and regulations for people to follow in place of penalties. The validators have to stake their coins for a longer duration. Also, the network does not provide your rewards until that specific period is over. It is to ensure that everything goes smoothly. Another important part is that, unlike Polkado,t which has a fixed set of validators to secure the whole chain, the validators in Avalanche operate for certain chains only. So many chains will have weaker security than the others.
Confusing Interface : Because Avalanche has three blockchains, it’s confusing for people, especially newbies. All these three chains have different addresses and require a cross-chain bridge to shift among them.
Tough Competition : Avalanche has many competitors, including Ethereum, Polkadot, Solana, etc. Some offer way better features and are more in demand for various reasons. It has succeeded in creating its marketplace, but the battle for survival will continue for years.

Conclusion

Avalanche is one of the best blockchain networks that can offer many features. It has a low price, yet high features are an attractive deal other than Ethereum-like features. Based on many analytics, its price will grow even more in the future, the way it did in 2021’s bull run. As a crypto investor, the individual should analyze the crypto market before making investment decisions.

The post Avax News : Is Avalanche Worth the Hype? appeared first on CoinGape.

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Filed under: News - @ February 16, 2024 7:26 am