Hardly any coin has undergone such rapid development in the past few weeks as the Avax token. Behind it is the Avalanche, a freely accessible (open-source) data protocol from the decentralized financial world (Defi). While the token still cost around $ 55 in mid-October, it peaked at over $ 134 at the end of November.
Avalanche-Coin AVAX: price, forecast and opportunities at a glance
What is the Avalanche (AVAX)?
Avalanche didn’t really get started until September 2020. Accordingly, the network is still quite young and not as complex as the protocols of the competition. Avalanche is considered to be the fastest network for so-called smart contracts, i.e. virtual contracts that are exchanged via the.
This already shows who Avalanche wants to compete with – including the second largest crypto currency Ether, whose blockchain Ethereum can also process smart contracts and which has similar properties to Avalanche.
Both cryptocurrencies are based on the so-called proof-of-stake algorithm: transactions are approved by validators in the network. Anyone who holds a certain amount of Avax tokens can become a validator, the requirements for this are quite low compared to other protocols.
For comparison: The one, the oldest and, is based on a proof-of-work algorithm. As a result, computing power is required above all to approve transactions. Since the network is now so gigantic, it takes huge computers (miners) and a correspondingly large amount of electricity to mine new Bitcoin and validate transactions. In contrast to Bitcoin, the Avalanche protocol, similar to Ethereum or Solana, is not only significantly more energy efficient, but also faster. Avalanche manages up to 4,500 transactions per second.
What application options does Avalanche (AVAX) offer?
The options are similar to other proof-of-stake blockchains like or. In particular, the fact that even those so hyped can be traded via Avalanche could be an advantage for the price of the AVAX coin. Peer-to-peer loans, i.e. between private individuals, are also possible. Since transactions via Avalanche only cost a few cents and are therefore significantly cheaper than via Ethereum, many applications are conceivable. This is also supported by the fact that, unlike other crypto currencies, Avalanche does not consist of one, but of several blockchains.
Who is behind Avalanche (AVAX)?
The idea for Avalanche came from a computer scientist at Cornell University in New York, Emin Gün Sirer. The corresponding whitepaper “Snowflake to Avalanche” was published in May 2018, and the market launch came in September 2020. The Avalabs have just received over $ 2 billion from well-known investors. The American venture capital firm Andreessen Horowitz was one of the first donors.
What are the advantages of the Avalanche Coin AVAX?
Similar to Bitcoin, the amount of Avax tokens is capped. A total of 720 million tokens can be issued. In contrast to Bitcoin, however, tokens are regularly burned with Avalanche, i.e. taken out of circulation. This is supposed to increase scarcity and prevent Avax inflation. The transaction fee is burned. In total, more than 523,000 Avax have been destroyed in this way, the equivalent of around 42.2 million dollars.
What are the disadvantages of the Avalanche Coin AVAX?
In contrast to Bitcoin and Ethereum, Avalanche is a very young crypto currency that has yet to assert itself. Accordingly, it is less decentralized, around 40 percent of the tokens are still held by the developers.
Forecast: What could influence the AVAX rate in the future
The artificial scarcity caused by the burning of coins could definitely have an impact on the price. Most recently, purchases from well-known investors have ensured that the price has risen further, and a partnership with Ethereum has also ensured an upturn. Overall, however, the Avax price naturally correlates with the general situation on the crypto market. If Bitcoin goes downhill, Avalanche also tends to lose value. Accordingly, it is very difficult to make a specific price forecast.
On which exchanges can I buy Avalanche (AVAX)?
This is of particular interest to WiWo readers today
The coin is traded on around seventy stock exchanges. This also includes large trading venues such as or Binance. In particular, the listing at is a good indicator, as the exchange usually only lists smaller coins when they have a certain market volume and can be classified as serious. However, investors must note that Avax tokens can not be purchased on many exchanges in dollars or euros, but only with other coins such as Bitcoin or Ethereum.
Investors should know now after the crypto crash –