It's been over a year and a half since we last heard from Avalanche, but now, respected cryptocurrency analyst Guy Turner is back, exploring the growing potential of Avalanche to potentially outperform its competitor, Ethereum.
fascinated by? Read on to uncover the reasons behind this bold prediction and find out if the Avalanche are ready to make a comeback.
Increased avalanche potential
Avalanche raised $60 million through several ICOs in 2019 and 2020, followed by an additional $580 million from venture capital funds in 2021 and 2022. Despite facing challenges, such as the collapse of Tera in May 2022, in which the organization lost up to $200 million, Avalanche has shown its resilience.
Avalanche has established strategic partnerships with Alibaba, Shopify, and Amazon's AWS, making it attractive to larger enterprises and e-commerce giants aiming to drive mass adoption.
Avalanche continues to bring innovations like the Bitcoin Bridge, Pangolin Index expansion, and collaborations with game studios like Gunzilla. Partnerships with major players like Alibaba, Shopify, and Amazon's AWS further validate Avalanche's capabilities.
Read also: Citi Bank, WisdomTree, Wellington bet on private fund tokenization on Avalanche
AVAX code dynamics
AVAX, Avalanche's native token, has a max supply of 720 million. Validators share at least 2,000 AVAX, with rewards currently around 7.5%. Avalanche's unique approach to transaction fees involves burning AVAX, with over 4.1 million tokens already burned.
Challenges and disagreements
Despite the successes, Avalanche has faced challenges, including allegations that law firms were paid to tip regulators to competitors, leading to a temporary market downturn. Incidents such as the Stars Arena exploit and layoff announcements also served as periods of turmoil.
Avalanche subnets are gaining popularity for various uses, attracting the attention of regulatory bodies, especially if some of the subnets include token assets or other financial instruments. The regulatory landscape in the cryptocurrency space is still evolving, and compliance errors could impact Avalanche's long-term success.
And it continues!
Avalanche faces competition from established platforms like Ethereum, Binance Smart Chain, Solana, etc. To maintain or expand market share, Avalanche needs to constantly innovate and differentiate.
Scalability and security trade-offs, such as increased hardware requirements for higher TPS, can pose challenges. Balancing decentralization, security, and scalability is crucial to the success of any blockchain network.
Read More: Top 6 Altcoin Picks with 5x – 10x Gains in the 2024 Crypto Bull Run
What does the future hold?
Avalanche's recent developments, partnerships, and innovations have led to a significant price increase. Technical analysis points to a potential bullish continuation, with AVAX potentially reaching $70 or more in the coming weeks.
Kevin S, co-founder of Avalanche, updated information on the “interesting developments” taking place. The community confirmed:
“There's more interesting research and engineering work happening in Avalanche right now than in any other ecosystem (including L2s). Bold claim, but honestly… it's true. Amazing work in interoperability, developer tools, and performance, etc.
In conclusion, with the Avalanche facing challenges, their trajectory looks promising. Through strategic partnerships, continuous innovation, and a committed community, Avalanche not only competes, but aims to redefine the future of decentralized finance.
