Avalanche ($AVAX) is a blockchain ecosystem built to solve the blockchain trilemma of security, scalability, and decentralization. The Avalanche blockchain utilizes the Proof of Stake consensus algorithm to achieve its goal.
Avalanche has native smart contract support, which developers use to create decentralized apps (dApps). The smart contracts use Solidity, the same programming language used on Ethereum.
Consequently, the network strives for blockchain interoperability with support for multiple decentralized finance (DeFi) ecosystems, including Curve and Aave, its most prominent DeFi ecosystems.
Why Avalanche Is Unique
The main selling point of AVAX tokens is scalability and low fees. Its unique PoS consensus algorithm enables up to 4,500 transactions per second. That is magnitudes greater than Ethereum, which can achieve a rate of 14 TPS, and Bitcoin, which can only handle 7 TPS. Consequently, Avalanche is one of the few networks within the DeFi ecosystem that can achieve transaction finalization in a second or less.
What is the AVAX Token?
AVAX is the native token of the Avalanche ecosystem. It is a utility token that powers transactions. Additionally, AVAX is used to distribute rewards and for ecosystem governance. The maximum supply of the tokens is 720,000,000 AVAX, with a circulation supply of 355,583,962 AVAX. Thus far, over 2.6 million AVAX tokens have been removed from circulation via the native token burning mechanism.
360 million AVAX were minted at the release of the genesis block. The rest are released over time as validator rewards. Thus far, 432,960,142 AVAX have been released via this mechanism. While AVAX is far from the supply cap of 720M, it will remain an inflationary token for many years.
AVAX Token Price Performance
Like most cryptocurrencies, Avalanche ($AVAX) tokens have rallied in the past few weeks. In just the past 30 days, the price of AVAX has rallied 136.86%, and 65.57% in the past seven days. The token’s 24-hour trading volume is $1,994,154,373 as of November 17, 2023. Most of the volume is on Binance, Upbit, and MEXC, which account for 38.99% of the trading volume. The current price of AVAX tokens is $21.85.
Avalanche Receives Boost from JP Morgan
The price of $AVAX tokens jumped by around 17% on November 15, 2023, on news of a new Avalanche integration by JP Morgan’s Onyx. The Onyx network will utilize an Avalanche subnet to connect tokenized assets to portfolios.
Avalanche’s announcement states that the integration will help streamline subscriptions for funds from WisdomTree Prime. It marks a major step toward integrating blockchain-powered solutions in the wealth management sector.
Should You Buy AVAX Tokens?
An analysis of the price of AVAX shows that it could reach $30. On-chain data supports this sentiment. In the past week, staking has increased significantly, while network activity has also increased. There are also numerous fundamental drivers of a rally, the most important being growing GameFi adoption.
However, to get to $30, AVAX has to break the $23 resistance to be confident of a $30 price point. Thus far, all signs point to AVAX breaking through $23 soon.
Based on the above analysis, and with the continued adoption of the Avalanche network by mainstream finance, point to an upward trend for AVAX in the near term. However, keep in mind that the crypto industry is highly volatile.
Consequently, base all crypto investment decisions on carefully analyzing your risk appetite.
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