AVAX Crypto asset Price Evaluation: Is It Heading to The Go to the moon?
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AVAX, a leading crypto asset, boasts a trading market cap of just under $8 billion. Currently, the token’s price stands at $18.95. What are the prospects for AVAX to surge, and what price expectations do we have?
AVAX serves as a decentralized smart contract platform that intends to tackle the prevalent crypto trilemma of scalability, decentralization, and security. Can it potentially surpass major players in the crypto arena such as ETH, Solana, or even BTC?
AVAX Past, Present, and Future
The architect of Avalanche, Cornell professor Emin Gün Sirer, alongside co-founders Kevin Sekniqi and Maofan “Ted” Yin, initiated the project. In early 2018, a pseudonymous collective called Team Rocket made public a whitepaper diverging from Satoshi Nakamoto’s original framework. Eventually, a professor unveiled his connection to this document.
Happy AVAlanche Day! Two years back, Team Rocket introduced the Avalanche Whitepaper, presenting a completely novel approach to consensus.
Movie credits @louisbaguenault pic.twitter.com/H2PjoHfh9E
— Emin Gün Sirer
(@el33th4xor) May 16, 2020
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In 2019, Emin established Ava Labs and embarked on developing Avalanche based on the whitepaper released by Team Rocket. The initial testnet, called Denali, launched in mid-2020, granting developers their first chance to explore network functionalities and deploy smart contracts.
Shortly thereafter, the Avalanche mainnet went live at the end of 2020. With the launch of the AVAX coin, users gained the ability to trade, stake, validate, and create decentralized applications (dApps). Early 2021 saw the introduction of Avalanche Rush, a significant boost for Decentralized finance projects.
A $180 million available volume block rewards incentive program lured significant players such as Aave and Curve, shining a light on the DeFi sector that had previously eluded retail participants. This sparked the Decentralized finance season, encouraging developers to launch new projects and attracting fresh capital from both retail and institutional sources.
1/ A few quick stats about the Avax ecosystem:
– TVL recently reached an all-time high of $2.6b following the parabolic surge after Avalanche Rush was announced
– TVL surged ~10x since the news and continues to grow. pic.twitter.com/WMyZ2h4Csl— Wangarian (@0xWangarian) September 16, 2021
Following this, Subnets were launched, empowering developers to tailor crypto networks within the Avalanche framework. In 2023, AVAX entered a strategic alliance with Amazon Web Services (AWS), furthering crypto adoption and bringing new investments into the space.
Avalanche versus Other Crypto Rivals.
A significant advantage of AVAX lies in its consensus mechanism. Utilizing a probabilistic metastable consensus approach that employs repeatable subsampling and “gossiping” among nodes, AVAX achieves nearly instantaneous transaction finality (~1-2 seconds).
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Moreover, AVAX boasts a remarkable transaction throughput (TPS), exceeding 4500, compared to Ethereum’s mere 30. Simply put, they have introduced a groundbreaking solution. Their architecture is divided into three segments, known as the tri-chain architecture, which includes the X-Chain, C-Chain, and P-Chain.
The X-Chain handles asset generation and transfers, serving as the trading platform that enables rapid transactions. The C-Chain is compatible with the Ethereum Virtual Machine (EVM), enabling developers to effortlessly create ETH dApps on Avalanche using Solidity with minimal adjustments to the code. The P-Chain, on the other hand, manages staking, validators, and subnet formation.
This innovative architectural setup not only keeps transaction fees to a mere fraction of a cent but also facilitates high TPS achievement.
AVAX Price Forecast and Technical Examination
Immediately following the launch of Avalanche Rush and the Decentralized finance summer in November 2021, AVAX reached its peak at $146.
(source)
However, this high was short-lived, and with the onset of the bear trading market in 2022, prices plummeted to around $18-$20 per token. Still, dedicated supporters remained unfazed, and after a lengthy consolidation period, the price surged nearly 3x.
At present, the price is resting comfortably at a significant support level on the weekly chart. It is forming a descending triangle pattern, which typically leads to breaking through resistance and substantial gains.
This could ignite a rally towards the next barrier level, estimated at ~$60. Additionally, the RSI 14 appears to have reached its lowest point, reinforcing our hypothesis that AVAX is gearing up for a rise.
In lower timeframes, the situation remains unchanged, awaiting a catalyst to kickstart the next surge. Given the current geopolitical climate, this is a challenging task, yet it does not deter crypto enthusiasts. When the moment arrives, traders who have secured their assets will be positioned to witness significant gains.
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