22 December 2021| ZebPay Trade-Desk

Avalanche is understood as a layer-one blockchain that works as a platform for localized applications and tailored blockchain networks. To read more about AVAX please click here

Once launching on the mainnet in 2020, Avalanche worked on developing its own scheme of DApps and DeFi. Many Ethereum-based companies that admire SushiSwap and TrueUSD have integrated with Avalanche. In addition, the platform is consistently operating to enhance the ability between its scheme and Ethereum, for instance through the event of bridges.

AVAX Snapshot (at the time of writing):

Market Capitalization$30.27 BillionCurrent Price$125.2024 HR Volume $1.76 BillionAll Time High/Low$146.2/$2.7Script in Circulation 243,207,050 AVAXTotal Supply 395,345,924 AVAX

Avalanche was started by Ava Labs, supported by Emin Gün Sirer, prof at Cornell University, and Kevin Sekniqi and Maofan “Ted” Yin, PhD in engineering science at Cornell University. Gün Sirer could be a crypto analysis veteran, having designed an abstract peer to look at virtual currency six years before the publication of the Bitcoin white book. He was jointly involved in work on scaling solutions for Bitcoin and research on Ethereum before the notorious The DAO hack in 2016. From this research was born the white paper that led to the institution Ava Labs in 2018. Investors like Polychain, Andreessen piano player and Balaji Srinivasan.Avalanche closed its initial 2020 coin giving in below twenty four hours, raising $ forty two million. The overall provider of AVAX is 720 million. Staking AVAX presently provides an annual reward of 11.57%, with the minimum time for staking being a time period with a minimum of 2,000 AVAX.

Investment Analysis:

AVA is actually integration of platforms. It permits numerous digital assets to be issued by just about anyone. Its USP is that AVA allows multiple scripting languages and multiple virtual machines to move at the same time with every other. This mechanism provides support for a spread of nodes with completely different capabilities, gaping up new avenues and developments of digital assets, functionalities, and capabilities within the process.

The quick dealing is created attainable by the distinctive design of Avalanche. The Avalanche network is made of 3 individual blockchains: XChain, CChain and PChain. Every chain encompasses a separate goal, that is essentially completely different from the approach Bitcoin and Ethereum take, which is to own all transactions valid by all nodes. Avalanche blockchains additionally use different agreement mechanisms depending on their use cases. Rather than making further layers of protocols, Avalanche has managed to incorporate scalability, fast finality,  performance, and high levels of decentralization on layer 1. AVA has benchmarked 4x higher the TPS of VISA, which itself speaks volumes with relation to its potency and scalability. 

AVAXSEPOCTNOVDECPrice (US $)57.761.699.897.3MoM ROI (%)103.47%117.09%61.98%-2.52%Volume ($ MN)1.690.711.481.39% growth152.89%5.64%110.39%-6.43%Market Cap12.4513.5722.1123.32% growth152.19%174.93%62.91%5.47%

Avalanche tries to resolve the blockchain hurdles that it cannot attain a spare degree of large-scale decentralization. As a result of this is the high gas charges, as is often the case with Ethereum network. In the table given above we can see the growth the coin has attained since the last 4 months. The prices have increased by about 45.8% in this quarter. It has shown phenomenal growth this year making an all time high of around $146.22 on 21st november. The last month of 2021 saw a visible drop which made in the price but there are still 10 days left. The volume has been almost stable with negative growth only in December. This can be attributed to the fall in price as well the lower volume in the market. But the volume has swelled by approximately 40% giving a positive signal about the asset for the investors. The market capitalization had remained stable across all 4 months. It continued to rise and rallied by about 85% over this quarter. The asset currently ranks at 10 due to its versatility and giving stiff competition to the likes of Ethereum and Polygon. And has climbed the rank ladder by 5 points in just 2 months.

The token price continued to rise after breaking out of its bullish flag range, hitting near $ 120 on Friday, but looking more to move towards its pursuit target near $160. The level came about after adding the height of the AVAX flagpole, which is around $75, to the current breakpoint near $85. AVAX / USDT has neared critical support at the 20-day EMA ($ 99).  If the price rebounds from the current level, the buyers will try again  to resume the bullish movement. A breakout and close above $ 119.69 could set the stage for a rally to $ 131.70 and then a historic high of $ 147. Conversely, if the price explodes and holds below the 20 day EMA, the pair may move lower to  strong support at $ 75.50.  

The recent buying period in the avalanche market has also gained momentum due to a flurry of positive catalysts this week. On Tuesday AVAX jumped nearly 10.50% when Avalanche added the native version of USDC, a dollar-indexed stablecoin issued by Circle, to its blockchain. In addition, a report  by analysts at Bank of America released on December 10 defined Avalanche as a viable alternative to the leading smart contract platform Ethereum. This coincided with AVAX’s increase of another 16%. AVAX hit its highest level in two weeks last Thursday after BitGo, a cryptocurrency custodian with more than $ 64 billion in assets under management, announced  it would back the token. However, a modest sale to the  top locals pushed AVAX down. Last Friday, Avalanche announced that it has partnered with the Web3 DeFi Alliance accelerator to launch a game acceleration program.  All of the above events indicated the growth of the avalanche ecosystem. For example, with USDC, the project promised to provide a viable alternative to Ethereum’s very expensive stablecoin Tether (USDT)  transactions.  In addition, by making BitGo the institutional custodian of AVax, Avalanche appears to be preparing to satisfy accredited investors.

Conclusion

Avalanche was another speedy sensible contract network that shot into the highest ten in 2021.“Solana and Avalanche are the new stars” among DeFi multi chains with 6% and 2% total value secured (TVL), respectively, within the third quarter. (Avalanche hosts the Aave DeFi protocol.) Those TVL gains came at the expense of Ethereum, which controlled nearly all DeFi TVL at the year’s starting (99%). Its share was 76% at the top of the third quarter by comparison. Avalanche’s native currency, AVAX, is 10th off the market price at the end of the Gregorian calendar month at $ 27.3 billion, which is likely backed by Deloitte to support the consultancy firm’s work with the United States Federal Emergency Management Agency. 

One of the remaining downside risks around AVAX relates to the performance of the cryptocurrency market as a whole.  In detail, AVAC rallied in a week that saw the entire  market cap of cryptocurrencies lose over $ 114 billion, major cryptocurrencies Bitcoin (BTC) and Ether (ETH) having fallen more than 7% and 5% to date. The reduction plans of the Federal Reserve catalysed the liquidation of the market. Therefore, it seems traders have viewed AVAX as their short-term hedge against the downturn in the cryptocurrency market, largely driven by a slew of positive news. However, the pair is likely to maintain its bullish bias as long as it holds above its 20 week exponential moving average (20 week EMA) as support. 

Avalanche division of computing tasks allows higher output while not compromising on decentralization. For instance, non-public blockchains on the network might need its subnet’s validators to be sufficiently geographically suburbanised or fit bound regulations. Following this standard structure, Avalanche improves its ability with different blockchains wishing to integrate with its ecosystem. Furthermore, the 2 different agreement mechanisms are designed with every blockchain’s necessities in mind, any rising their efficiency. The announcement of Ampleforth integration with Avalanche to introduce a stablecoin coin permitting users of the blockchain to access the programing language AMPL for helpful contract interaction is unquestionably to bring the platform and coin a boost. The network also holds the most important suburbanised commercialism platform in terms of Total barred worth is merchant Joe with around $2.18 billion worth of assets presently on the protocol. Avalanche is additionally progressing to launch a bridge between itself and Cartesi delineate as a blockchain protocol aiming to integrate the standard tools employed by developers with tools of decentralization. There appears to be tons of positive news for the asset. And it has already provided good numbers for the investors and this may continue in future as well as it now occupied a rank in top 10.  

References:

https://coinmarketcap.com/

https://www.alchemytech.io/

https://www.avax.network/

Disclaimer : This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness or reliability of the information, opinions or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptocurrencies viz. Bitcoin, Bitcoin Cash, Ethereum etc.are very speculative and are subject to market risks. The analysis by Author is for informational purposes only and should not be treated as investment advice

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