It's been over a year and a half since we last heard about Avalanche, and now respected crypto analyst Guy Turner is back to talk about how Avalanche could potentially outperform its competitor Ethereum. We are exploring the growing potential of
Intrigued? Keep reading to uncover the reasoning behind this bold prediction and find out if Avalanche is ready for a comeback.
Increased possibility of avalanche
Avalanche raised $60 million through various ICOs in 2019 and 2020, followed by an additional $580 million from VCs in 2021 and 2022. Avalanche has shown its strength despite facing challenges such as the May 2022 Terra bankruptcy, where the foundation lost up to $200 million. Resilience.
Avalanche has strategic partnerships with Alibaba, Shopify, and Amazon's AWS, making it attractive to major institutions and e-commerce giants looking to accelerate mass adoption.
Avalanche continues to bring innovations such as Bitcoin Bridge, expansion of the Pangolin index, and collaborations with game studios like Gunzilla. Partnerships with leading companies such as Alibaba, Shopify, and Amazon's AWS further demonstrate Avalanche's potential.
Also read: Citi Bank, WisdomTree, Wellington bet on private fund tokenization with Avalanche
AVAX Token Dynamics
Avalanche’s native token, AVAX, has a maximum supply of 720 million. Validators stake a minimum of 2,000 AVAX and the staking reward is currently around 7.5%. Avalanche's unique approach to transaction fees includes his writing of AVAX, with over 4.1 million tokens already written.
issues and controversies
Despite its success, Avalanche faced challenges, including allegations that it paid a law firm to steer regulators toward a competitor, leading to a temporary market downturn. Incidents such as the Stars Arena squeeze and layoff announcements also marked a period of turmoil.
Avalanche subnets are gaining popularity for a variety of uses and have attracted the attention of regulators, especially when certain subnets contain tokenized assets or other financial products. The regulatory landscape in the cryptocurrency space is still evolving, and compliance mistakes could impact Avalanche's long-term success.
And it continues!
Avalanche faces competition from established platforms such as Ethereum, Binance Smart Chain, and Solana. To maintain or increase market share, Avalanche must continually innovate and differentiate.
Trade-offs between scalability and security can pose challenges, such as increased hardware requirements to increase TPS. A successful blockchain network relies on a balance of decentralization, security, and scalability.
Read more: Top 6 altcoins that will return you 5x to 10x during the 2024 crypto bull market
What will the future hold?
Avalanche's recent developments, partnerships, and innovations have resulted in significantly higher prices. Technical analysis suggests a possible continuation of the bullish trend, with AVAX potentially reaching above $70 in the coming weeks.
Avalanche co-founder Kevin S gave an update on “interesting developments” currently happening. He argued to the community:
“There's far more interesting research and engineering work going on in Avalanche right now than in most other ecosystems (including L2). It's a bold claim, but let's be honest… it's true. Interoperability, Development Incredible work on user tools, performance work, etc.
In conclusion, Avalanche's trajectory looks promising as it addresses its challenges. With strategic partnerships, continuous innovation, and a dedicated community, Avalanche aims to not only compete, but redefine the future of decentralized finance.
