The Growing Traction of Avalanche Crypto
According to a report by CoinDesk, the crypto news service, Avalanche Blockchain enjoyed a massive 1,500% transactional growth in 2022 (despite the bear market) compared to 2021.
For a product that first showed in the market in 2020, AVAX has demonstrated immense resilience, growing close to $5 billion in market capitalization and a market cap rank of #17.
Fortunately, the traction of avalanche crypto isn't stopping there.
Understanding Avalanche crypto
The Avalanche crypto technology aims to restructure the blockchain industry by facilitating enhanced scalability and performance. Leveraging its cutting-edge Avalanche consensus protocol, the technology goes against traditional consensus mechanisms to deliver efficient transactional speeds without compromising network security.
In context, Avalanche can process 4,500 transactions per second, while Ethereum can only do 14 transactions per second.
Unsurprisingly, the platform has been lauded as a viable alternative to Ethereum and Solana.
The technology, founded by a research and engineering team led by Emin Gun Sirer, exhibits seamless compatibility with the Ethereum Virtual Machine (EVM). This interoperability is responsible for the ease with which Ethereum-based projects are ported to the Avalanche ecosystem.
Also, third-party developers can develop custom virtual machines on the technology, resulting in a rapidly growing world of decentralized applications (DApps). So far, there are 354 DApps on the platform, and the list looks like it will keep growing.
The powerful blockchain technology, interoperability, versatility, and native utility token, are responsible for the massive jumps and impressive numbers Avalanche is pulling despite the world’s current crypto winter.
And with recent developments around the platform, the avalanche bull run isn't ending anytime soon.
Signs of a better future for the Avalanche crypto ecosystem
By the close of November 2020, the price of AVAX was around $3.60 per unit. However, AVAX currently trades at $14.36, which indicates an increase of ~211%. However, the $14.36 figure is a massive drop compared to the all-time high price of $134.87. But a price drop between 2022 and 2023 was expected in the wake of a bear market.
Before the 2022 bear market:
The development and public presence of Avalanche crypto began with the launch of the Avalanche Mainnet on 21 September, 2020. Users got access and were soon greeted by further launches like the Avalanche-X Grants Program (October 2020) to foster innovation and attract developers. The impressive run continued with the Avalanche Rush Incentive Program of December 2020, which focused on incentivizing users.
2021 was also an eventful year, during which the Avalanche bridge to Ethereum (February 2021) was made possible. The Avalanche Rush Hackathon (March 2021) promptly followed the interoperability achievement, bringing further development and engagement in the ecosystem.
Soon, a host of interoperable integrations and partnerships began to spring up. Other milestones in the year included the Avalanche Improvement Proposals, designed by community members to improve experience and security on the platform.
As proof of the next-gen technology underlying Avalanche, decentralized applications like Benqi (DeFi platform), Snowball (Yield optimizer), and Pangolin (DEX) have surfaced.
The success recorded by AVAX in its first years resulted from the credible attention the team paid to different facets of its spectrum - developers, users, investors, and institutions. Fortunately, this also set the base that made the blockchain platform resilient to the 2022 crypto winter.
Between 2022 and the present:
Between the last months of 2021 and the start of 2022, the entire digital world was abuzz with talks of DeFi, NFTs, Yield farming, and Proof of Stake, amongst other concepts.
But following the dramatic end to the industry 'hype' between April and May 2022, several projects have been weeded out.
Avalanche crypto isn't one of them.
The platform has become a yardstick against which newer projects measure success. It has become a major competitor for Ethereum.
AVAX partnered with Alibaba to expand the ecosystem to deliver a new ‘Cloudverse’ project. Avalanche has recently launched two new marketplaces, Superchief Gallery NFT and Zeroone. Furthermore, a strategic partnership with Legitimate indicates Avalanche’s commitment to closing the digital and physical worlds gap.
Avalanche is leaning in on collaborative endeavours to build a more robust and competent user ecosystem. Over the past year, the Avalanche crypto ecosystem has welcomed more users, and according to predictions, AVAX trading price is on course to potentially reach $200.
Author: Boboye Adeyemi
Adeyemi is a content writer/marketer with a year of experience writing quality content for various clients & brands in the cryptocurrency, blockchain, and technology industries. Adeyemi has experience in social media management/marketing, email marketing & SEO services.