Key Takeaways
The price of Avalanche’s AVAX token enjoyed an upsurge in price at a time when the crypto market fell. Higher staking yields and increasing trading volumes pushed the price to its highest point since May 2022.
However, the price has been dropping since Christmas Eve.
The price fall is, at least in part, down to fewer people using the platform’s C-Chain, according to data from Artemis .
On November 7, Avalanche founder Emin Gün Sirer announced layoffs affecting 12% of staff at Ava Labs, the core development team behind the blockchain. Sirer cited the need to reallocate resources and double down on ecosystem growth despite the recent crypto bear market.
Avalanche did not immediately respond to a request for comment.
On January 23, 2024, AVAX was worth about $29.15.
But what is Avalanche (AVAX)? How does Avalanche work? Let’s see what we can find out and also take a look at some of the Avalanche Price Predictions that were being made as of January 23 2024.
Let’s take a look at some of the Avalanche price predictions that were being made as of January 23, 2024.
It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong.
Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice.
First, CoinCodex had a short-term Avalanche price prediction for 2023 that saw it trade at $29.96 before climbing to $32.55 by February 22. The site’s technical analysis was neutral, with 18 indicators sending bullish signals and 11 making bearish ones.
2024 | 2025 | 2030 | |
---|---|---|---|
Prediction #1 | $34.90 | $59.29 | $181.72 |
Prediction #2 | $46.94 | $68.20 | $533.90 |
Prediction #3 | $63.63 | $71.67 | $431.91 |
CaptainAltCoin said AVAX would trade at $34.90 in December. PricePrediction.net was more optimistic, saying it would reach $46.94 by the end of the year. DigitalCoinPrice was even more bullish, saying the coin would get to $63.63 in 2024.
DigitalCoinPrice’s Avalanche price forecast for 2025 saw it worth $71.67. PricePrediction.net’s average price of that period was lower at $68.20. CaptainAltCoin was even more cautious, saying AVAX would trade at $59.29 in 2025.
Moving on to a more long-term Avalanche price prediction, PricePrediction.net was by far the most optimistic, saying the coin would be worth $416.66 in 2030. DigitalCoinPrice had a yearly average of $222.56 then. Meanwhile, CaptainAltCoin’s AVAX price prediction said it could reach $148.23 at the start of the next decade.
Google’s BardAI platform gave the following price prediction for Avalanche on January 23. Please remember that price predictions are very often wrong, and that artificial intelligence should not be trusted.
It added: “Remember, these are just speculative scenarios based on available information. The cryptocurrency market is highly volatile, and unexpected events can significantly impact price movements. Always conduct your own research and understand the risks before making any investment decisions.”
Blockchain analytics company Messari recently released its quarterly report on Avalanche . It outlined some key advantages and disadvantages of the blockchain.
It found that Avalanche had
Messari said that Avalanche
Messari also said that Avalanche
Let’s now take a look at some of the highlights and lowlights of the Avalanche price history . While past performance should never be taken as an indicator of future results, knowing what the coin has done can help give us some very useful context when it comes to either making or interpreting an Avalanche price prediction.
When AVAX first came onto the open market in September 2020, it traded at about $5. The bull market of early 2021 saw its price break past $50 in February before it fell down. It recovered later in the year, reaching an all-time high of $146.22 on 21 November before it closed the year at $109.27.
2022 was not a good year for Avalanche. It fluctuated in the first few months, occasionally trading above $100, before a series of market crashes saw it close the year at $10.90, a year-on-year loss of more than 90%.
Until late in the year, 2023 was pretty mediocre for AVAX. The coin’s price broke through $20 in February and April, but things went downhill after that.
The news that the SEC was suing the Binance and Coinbase exchanges in early June hit it hard. On 10 June, following Crypto.com’s announcement that it was suspending its US institutional activities, it fell to $10.42.
In the following weeks, the crypto recovered a little. On 14 July AVAX jumped to $15.87 after the market climbed when a judge ruled that Ripple’s XRP cryptocurrency was not a security if it was being sold on exchanges, AVAX jumped to $15.87. There were some ups and downs but, in December, AVAX performed well at a time when the market dropped. It reached a peak of $49.66 on December 24 before closing the year at $38.54. This meant the coin rose more than 250% in 2023.
The new year saw a decline and, on January 23, 2024, Avalanche was worth about $29.15.
At that time, there were 366.8 million AVAX in circulation out of a total supply of 434.8 million. This gave the coin a market cap of about $10.6 billion, which made it the 10th-largest crypto by that metric.
AVAX fell to around $14 in June 2022 and started a long-term stagnation which saw it it stuck between $10 and $23 for nearly 18 months.
The price broke out from its range in December, suggesting a new bull phase for Avalanche.
However, it has been falling in recent weeks. It could still drop further, but the good news is that it might be a corrective move. We could see a larger uptrend after that, leading AVAX to new highs later this year.
It is hard to say. On one hand, Avalanche is one of the larger blockchain platforms out there, and the fact that it managed to perform well at a poor time for crypto is encouraging.
Avalanche Vista’s launch could also see an increase in interest in the platform.
On the other hand, AVAX’s has previously underperformed against the market, so it remains to be seen whether it will revert to type. It has certainly had a weak 2024 so far.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in AVAX.
No one can really tell right now. While the Avalanche crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in Avalanche, you will have to do your own research, not only on AVAX, but on other, related, coins and tokens such as Cardano (ADA) or Solana (SOL). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
Computing experts Emin Gün Sirer, Kevin Sekniqi, and Maofan “Ted” Yin founded Avalanche in 2020. Gün Sirer was an associate professor of computer science at Cornell University, while Sekniqi and Yin were PhD students of his.
On January 23, 2024, one wallet held 0.38% of AVAX’s supply.
On January 23, 2024, the five addresses with the most AVAX were
Supply and distribution | Figures |
---|---|
Max supply | 720,000,000 |
Circulating Supply (On December 12, 2023) | 366,803,489 (50.94% of the maximum supply) |
Holder distribution | Top 10 wallets hold 2.03% of the maximum supply as of January 23 2024 |
In its technical documentation, or whitepaper, Avalanche describes itself as a “high-performance, scalable, customizable and secure” blockchain. It sets out three uses.
Avalanche is a blockchain that is designed to be scalable. In other words, it is meant not to slow down when the network gets busier, thus saving people who use it time and, perhaps more importantly, money.
Much like Ethereum (ETH), Avalanche makes use of smart contracts, computer programs that automatically execute once certain conditions are met.
Its native coin, which goes by the ticker handle AVAX, supports the system.
Avalanche makes use of a Proof-of-Stake (PoS) consensus mechanism. This means that people are selected to verify transactions and blocks added to the blockchain-based on how much AVAX they have.
The system consists of three separate, but intertwined blockchains.
The Contract Chain, or C-Chain, helps the system’s users work with Ethereum-based decentralized applications (dApps).
The Exchange Chain, or X-Chain, is used to swap and trade AVAX and the crypto tokens that are based on Avalanche.
Finally, the Platform Chain, or P-Chain, lets users set up their own side chains which link to the Avalanche platform and, perhaps more importantly, create their own crypto tokens.
Making use of three chains means, at least in theory, that the platform is faster. This eliminates the need for layer 2 scaling solutions, platforms which take a transaction off a blockchain, carry it out, and put it back in attempt to save users time and money.
AVAX helps people secure the system. People can also stake it, or set is aside, in return for rewards. People can stake their AVAX to another user, delegating certain responsibilities to them, again in return for rewards, paid in AVAX.
AVAX holders can also vote on changes to the network, and the coin can also be bought, sold, and traded on exchanges. It is also used to pay for transactions on Avalanche. The coin is burned, or destroyed, when that happens.
Here is a chart for Avalanche (AVAX) Google search volume for the past 90 days. This represents how many times the term “Avalanche (AVAX)” has been Googled over the previous 90 days.
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Disclaimer
Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.