AVAX Price Forecast: Is It Heading to The Moon?
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AVAX is amongst the leading cryptocurrencies, boasting a trading market cap just shy of $8 billion. The current price of the token stands at $18.95. How strategically positioned is AVAX for a surge, and what price forecast should we expect?
AVAX operates as a decentralized self-executing contract platform that seeks to address one of the most frequently debated crypto challenges: scalability, decentralization, and safety. Can it surpass major players in the cryptocurrency landscape like ETH, Solana, or even BTC?
AVAX’s Journey: Past, Present, and Future
Cornell professor Emin Gün Sirer is the mastermind behind Avalanche, along with Kevin Sekniqi and Maofan “Ted” Yin, co-founders of Ava Labs. In early 2018, an anonymous group named Team Rocket released a whitepaper distinct from the original created by Satoshi Nakamoto. Subsequently, a professor disclosed that he and his team were the authors of this document.
Happy AVAlanche Day! Two years ago, Team Rocket unveiled the Avalanche Whitepaper, introducing a completely new 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 began constructing Avalanche based on the whitepaper released by Team Rocket. In mid-2020, the first testnet, Denali, was launched, allowing developers to explore protocol functionalities and smart contract deployment.
Shortly after, in late 2020, the live network was officially introduced. Ava Labs launched the Avalanche live platform, allowing the AVAX crypto token to go live, enabling users to trade, stake, validate, and develop decentralized applications (dApps). In early 2021, Ava Labs initiated Avalanche Rush, a significant initiative aimed at Decentralized finance projects.
They announced a $180 million market fluidity block rewards incentive program that attracted major players like Aave and Curve. This provided visibility to the Decentralized finance sector, which had previously been somewhat opaque to retail investors. It ignited the Decentralized finance season, leading many developers to create new projects and draw in fresh capital from both retail and institutional investors.
1/ A few quick stats on the Avax ecosystem:
– TVL recently peaked at an ATH of $2.6b following the news of Avalanche Rush
– TVL has grown approximately tenfold since the news and continues to rise. pic.twitter.com/WMyZ2h4Csl— Wangarian (@0xWangarian) September 16, 2021
Later, Subnets were introduced, enabling developers to tailor crypto networks within the Avalanche framework. In 2023, AVAX formed a strategic alliance with Amazon Web Services (AWS), which sped up crypto adoption and infused fresh capital into the crypto sector.
Comparing Avalanche with Other Crypto Rivals
One of the standout features of AVAX is its consensus mechanism. The probabilistic metastable consensus employs repeatable subsampling and “gossiping” among nodes. In simpler terms, this allows for nearly instantaneous transaction finality (approximately 1-2 seconds).
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Furthermore, the transaction per second (TPS) rate is the highest across the board, exceeding 4500 compared to Ethereum’s 30. In essence, they developed something unique that no one else has managed to create at this time. They segmented their chain into three components: X-Chain, C-Chain, and P-Chain.
X-Chain was tasked with asset creation and transfers, functioning as the trading platform that facilitated those rapid transactions. C-Chain was compatible with the Ethereum Virtual Machine (EVM), empowering developers to seamlessly build ETH dApps on Avalanche. It also utilized Solidity, enabling developers to copy and paste code with minimal adjustments. P-Chain’s role involved earning yield, validators, and the creation of subnets.
This architectural innovation not only resulted in transaction fees being just a fraction of a cent but also enabled the achievement of high TPS.
AVAX Price Forecast and Technical Review
Following the launch of Avalanche Rush and the Decentralized finance summer in November 2021, AVAX reached an all-time high of $146.
(source)
However, this peak was short-lived, and as the bear market of 2022 set in, the price dropped to around $18-$20 per crypto token. Yet, this didn’t deter genuine supporters, and after a prolonged phase of consolidation, the price surged nearly threefold.
Currently, the price rests comfortably on a robust base level level observed on the weekly chart. A descending triangle pattern is forming, which typically signals a break from barrier level and a significant price breakout.
This could spark a rally toward the subsequent resistance level, approximately at the $60 mark. Additionally, the RSI 14 appears to have reached a bottom, further reinforcing our assertion that AVAX is gearing up for a surge.
On shorter timeframes, the scenario remains unchanged as we await a catalyst to trigger the next surge. Given the current geopolitical context, this is a challenging task, but it doesn’t dissuade crypto enthusiasts. When the moment arises, traders who have secured their positions will enjoy watching their investments grow.
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The article AVAX Price Prediction: Is It Headed for The Skyrocket? initially appeared on 99Bitcoins.
