AVAX/USD Technical Analysis
About Avalanche (AVAX)
Avalanche is the fastest blockchain and smart contract network. Since launching its mainnet in 2021, the network has gone on to grow the largest number of validators through its Proof of Stake consensus blockchain. The blockchain charges low fees, it is environmentally friendly and likes to call its self the green blockchain, finally you are going to love the lightning-fast transaction speeds. Over the past few months, Avalanche has secured more than 200 DeFi projects on its ecosystem and burnt over $14 million in AVAX. Atleast 1000 users take part in validating transactions on the Avalanche blockchain.
The Avalanche Blockchain is a layer 1 blockchain that allows developers to build their own decentralized applications on top of it as well as deploy custom blockchain networks. Since birth, Avalanche has been marketing itself as the Ethereum Killer. The aim is to overtake Ethereum as the preferred blockchai for running smart contracts. By having a higher transaction output surpassing 6.5K transactions per second, Avalanche believes it can unseat Ethereum.
The Avalanche technical model comprises three individual and separate blockchains: the C-Chain, X-Chain and P-Chain. All of these chains have different objectives and each chain approaches its solution distinctively from Ethereum or Bitcoin. Based on the separate use case of each chain, the Avalanche blockchain can employ different consensus methods.
Avalanche solves the blockchain trilemma by dividing each task according to its need for computing power. The idea is to subdivide each computing task, and allocate sufficient computation resources so that the blockchain can achieve high throughput without affecting decentralization. There are over 720 million AVAX coins that will ever exist. 50% of the total supply are released into circulation through staking rewards. At the moment, AVAX staking offers an 11.57% in annual rewards. The minimum amount of staking coins needed to become a network validator is 2,000 AVAX.
The Avalanche blockchain secures its network by having all nodes taking part in validating transactions. This is made possible through the directed acyclic graph (DAG) protocol. Therefore, the process of validating transaction takes place simultaneously. Efficiency becomes even more robust given the absence of blocks. Therefore, there is immediate finalization and a highly improved overall blockchain speed.
Emin Gun Sirer, a professor at Cornell University founded Ava Labs alongside two Cornell University Computer Science PHDs Maofan Ted Yin and Kevin Sekniqi. Ava Labs went on to found the Avalanche blockchain and release the AVAX coin in 2020. As you can see, Avalanche is a young cryptocurrency but one with an interesting growth curve.
Nonetheless, the fundamentals of the Avalanche blockchain were a topic of discussion back in 2018 and became public as the InterPlanetary File System. Emin Gun Sirer who led the development had his initial vision around creating a proof of work system that was more energy efficient.
The building approach would happen across a community of interested researches in academic circles. Gun Sirer is a veteran cryptographic researcher with a history of conceptualizing and designing a P2P virtual currency almost 6 years before the Bitcoin whitepaper.
Additionally, Gun Sirer also took part in the research of Ethereum and some work around building a Bitcoin Scaling solution. It is some of his earlier works around virtual cash that led to the Avalanche whitepaper and the subsequent creation of Ava Labs in 2018. Avalanche saw the public light during its 2020 ICO where it raised over $42 million. However, Ava Labs had raised a seed funding in 2019 that was led by Andreesen Horowitz, Polychain and Balaji Srinivasan.
Avalanche (AVAX) Price Factors
Despite having a growing ecosystem, Avalanche has not been around for long. It is a pretty young cryptocurrency and hence not that stable. However, the coin is already at number 16 of the top cryptocurrencies by market capitalization. Like all other coins, it is highly volatile and its price could either drop/rise drastically at any given time.
Over time, the price of Avalanche has mostly been affected by technical upgrades, partnerships, social media sentiments and overall perfomance of the general cryptocurrency market. External factors like changes in value across major currencies could affect the price of the coin.
Avalanche has a solid business development model and an ecosystem that's focused on growing community. There is a lot of room for the blockchain and its token to grow since it has existed only for a short time. Despite the looming bear market in 2022, the coin has not performed that bad and has remained somewhat stable.
How to Trade Avalanche?
Trading Avalanche or any other cryptocurrencies requires careful analysis of both technicals and fundamentals. We advice traders to rely on expert analysis and predictions to determine the direction of cryptocurrency prices. The volatile nature of digital assets is extremely risky, but profitable at the same time. Therefore, the need for careful evaluation.
Majority of Avalanche traders rely on our professional analysis such as our live updates section and price forecasts. This helps them to make informed buying and selling decisions that favors their overal capital investment. Since the currency is only a few years old, it is quite difficult for the average trader to determine levels of fluctuations and whether the coin will retail its value.It is crucial thereof, for any investor to back their trading with information and insights from experienced traders and technical analysts.
AVAX/USD - FAQs
Avalanche can be traded via blockchain exchanges such as Binance or Coinbase. The coin can also be traded through a price broker. Interested traders can buy Avalanche through a P2P exchange such as LocalCrypto or Binance p2p.
Cryptocurrencies are stored on digital crypto wallets. There is an official Avalanche Wallet, but you could also utilize third-party wallets such as MetaMask and Trust Wallet.
You can trade physical items with your Avalanche (AVAX) or exchange the AVAX coins for other cryptocurrencies. Besides, it is possible to pay for products or services using crypto, or even cash out via a crypto-to-fiat exchange.