Avalanche and Token: Let us dig deeper
Avalanche is a blockchain infrastructure project that provides a platform where developers can build decentralized applications (dApps) in all areas. It is an Ethereum-killer that helps to solve the speed and scalability challenges in the ecosystem.
AVAX is the native token for its ecosystem and is used to reward validators and secure the network. The maximum supply of AVAX is capped at 720 million tokens, while the circulation coins are 245 million.
Avalanche is trading at $90.50, which is the highest it has been since January 17th and is about 70% above the lowest level this year. The total market capitalization of the AVAX in circulation is more than 22 billion, making it the 10th biggest cryptocurrency in the world. The total diluted market cap is at about $65 billion.
Avalanche is a popular platform among DeFi developers. According to DeFi Llama, there are now 162 apps in the ecosystem that have a total value locked of over $10 billion.
Avalanche (AVAX) price history and technical analysis
Like all altcoins, Avalanche had a difficult January as its price dropped to the lowest level since October 21st 2021. It then made a spectacular comeback in February and has climbed by almost 70%.
On the daily chart, Avalanche is trading at a level that is slightly lower than the 38.2% Fibonacci retracement level. It has also moved to the upper side of the descending channel shown in red.
The price has climbed above the 25-day and 50-day moving averages, which is a sign that bulls are gaining momentum.
Meanwhile, oscillators have also tilted higher, with the Williams Percentage Range moving to the overbought level. The same is true with other oscillators like the MACD and the Relative Strength Index (RSI). Therefore, the bullish trend will likely continue in the coming weeks, but bulls will need to clear the upper side of the channel.
Avalanche (AVAX) price prediction for a year
Avalanche, like all other assets, will likely have a volatile year as the Fed starts unwinding its pandemic policies. The bank has already hinted that it will start hiking interest rates in March and end its quantitative easing (QE) program.
Historically, cryptocurrency and other risky assets tend to underperform during a period of Fed tightening. Thus, the common phrase that warns against fighting the Fed.
However, the impacts of these policies will be ameliorated by the growth of Avalanche’s ecosystem and clarity about regulations.
A study by LongForecast estimates that Avalanche will jump to $129 by the end of the year. Another estimate by Gov Capital estimates that the coin’s price will end the year at about $217, which is more than double the current price.
Still, there are risks that Avalanche will need to contend with. For example, a hack in some of its DeFi projects will have negative impacts on the network.
Avalanche (AVAX) price prediction for 2025
As it is tricky to predict where the price of Avalanche or any cryptocurrency will be by 2025, we will use the estimate for the best and worst scenarios from different sources.
The most important assumption is to question whether the Avalanche price will be higher or lower than where it is currently. The most likely scenario is that the coin’s price will be substantially higher than where it is today.
For one, Avalanche has a close correlation with the price of Bitcoin, and most analysts expect that BTC will keep rising by 2025. Cathie Wood expects that it will rise to more than $300,000, while the stock-to-flow model shows that the coin will rise to about $125,000.
Therefore, a modest estimate that says that AVAX will rise by 3x means that its price will be about $270 by then. An estimate by LongForecast estimates that Avalanche will end 2025 at $153, while another one by Gov Capital estimates that Avalanche will start 2025 at $894 and at $1,360.
Avalanche (AVAX) in questions and answers
Is Avalanche coin real?
Yes. Avalanche is a real coin that has vast utility value. It is used to secure the Avalanche ecosystem and reward holders.
Will Avalanche reach $1,000?
Avalanche is trading at about $90. Therefore, it would need to jump by over 1,000% to get to $1000 in 2,022. This is highly unlikely. However, there is a likelihood that the coin will get to $1,000 in the long term as its ecosystem grows.
Should I buy Avalanche?
Avalanche looks like a good investment based on its historical performance and the fact that it has vast utility value.
How much will Avalanche be in 2025?
Based on our estimation, Avalanche will be substantially higher than where it is today. The most conservative estimate is that it will be above $200.
Where do I buy Avalanche token?
Avalanche is offered by most centralized and decentralized exchanges, namely:
- Binance
- Bitfinex
- Gate.io
- Kucoin
