Key Takeaways

• The Avalanche blockchain, designed to be fast and immune from network slowdown, has seen an increase in daily users over the last few months.
• Nevertheless, the price of its native coin, AVAX, has not really reflected the upturn in blockchain usage.
• AVAX holders will be hoping that the newly-launched Avalanche Vista programme can give the crypto a boost.

The Avalanche blockchain has been performing well over the last few months, with a growth in activity on the platform as more and more people use it. 

However, that positive news has not really had that much of an impact on the price of its native AVAX coin, which, although mostly recovering from a slump in June, is still a long way from the heights it enjoyed in late 2021. 

However, the news that it had launched  Avalanche Vista, a $50 million platform which tokenizes real-world assets could have an impact on the price of AVAX.

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 27 July 2023.

From the Whitepaper

In its technical documentation, or whitepaper, Avalanche  describes itself as a “high-performance, scalable, customizable and secure” blockchain. It sets out three uses.

• Building application-specific blockchains, spanning permissioned (private) and permissionless (public) deployments.
• Building and launching highly scalable and decentralized applications (Dapps).
• Building arbitrarily complex digital assets with custom rules, covenants, and riders (smart assets).

Advantages and Disadvantages of Avalanche

Blockchain analytics company Messari recently released its quarterly report on Avalanche . It highlighted [any interesting fact you come across], and outlined some key advantages and disadvantages of the blockchain.

It found that Avalanche had

• 79,162 average daily users, up from 70,237 year-on-year and more than double the 38,097 daily active addresses in the previous quarter.
• More than 1.5 million daily transactions, up from a little over 910,000 year-on-year but down from more than 1.9 million quarter-on-quarter.
• An average market cap of $4.5 billion, down from $4.7 billion year-on-year and down from $5.8 billion quarter-on-quarter.
• Quarterly revenue of $4.5 million, down significantly from $37.8 million year-on-year but up considerably from $1.8 billion quarter-on-quarter.

Advantages of Avalanche

Messari said that Avalanche

• Had worked towards developing its non-fungible token (NFT) sector.
• Carried out good work on linking subnets with the main blockchain system.
• Did a good job on bringing Web 2.0 organisations onto the blockchain.

Disadvantages of Avalanche

Messari also said that Avalanche

• Struggled in the wake of the market crash following the news that the United States Securities and Exchange Commission (SEC) was suing the Binance and Coinbase exchanges.
• Did not have a particularly active developer base.
• Had seen a large percentage of its validators, people who verify transactions in the system, go offline throughout the quarter.

With Messari’s report being broadly positive about Avalanche, what does this mean about the AVAX price prediction?

First, though, let’s talk about what Avalanche actually is.

Avalanche (AVAX) Explained

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. 

Avalanche was set up in 2020 by computing experts Emin Gün Sirer, Kevin Sekniqi, and Maofan “Ted” Yin.

It is supported by its native coin, which goes by the ticker handle AVAX.

How Avalanche Works

Avalanche makes use of a Proof-of-Stake (PoS) consensus mechanism, which 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 can be used to help people secure the system, while it can also be staked, or set 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. 

AVAX Price History

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, an year-on-year loss of more than 90%.

So far, 2023 has been pretty mediocre for AVAX. The coin’s price broke through $20 in February and April, but things have gone downhill since then.

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. Since then, though, the price has dropped and, on 27 July 2023, the coin was worth about $13.25. 

At that time, there were 345.9 million AVAX in circulation out of a total supply of 432.6 million. This gave the coin a market cap of about $4.5 billion, which made it the 18th largest crypto by that metric. 

Avalanche Price Analysis

Recently, AVAX has been been on the decline. Its current price is more than 15% less than on 14 July, although it is still up more than 20% from its 10 June low. However, it is still worth over 10% less than the $14.87 it traded at before the SEC’s announcements on 5 June.

The number of Avalanche’s daily active users went up from 32,000 on 21 March to 141,200 on 14 June. The last time Avalanche had these sorts of numbers was in late 2021 and early 2022, when AVAX was worth about $85.

However, with the current price a lot lower than that, what does it mean for the future?

On-chain data

Not only does the daily active users chart show that Avalanche blockchain has the same level of users as in late December 2021 and early January 2022, some other metrics are even higher than they were then.

Both Avalanche’s daily and monthly transactions were up year-on-year in December 2022 and January 2023. They have dropped since, but they are still close to where they were 18 months ago.

The price of AVAX 

AVAX reached its all-time high in November 2021. Since then, it has been in a bear market, falling around 95% to about $11 in late 2022. 

Although it climbed past $20 in February and April, it has not got any further, suggesting that, if and when it does, it could move even higher. 

The on-chain statistics are strong, suggesting that AVAX could make some kind of breakthrough at some point soon, even if the price level is not what it could be.

It seems more likely the price will drop down before it recovers to climb above the downward trend line, illustrated above. It is possible that this could take place by late September. 

If that does happen, then that could mean the bear cycle has ended, and a bullish one is about to begin.

Avalanche Coin Price Prediction 

With that all out of the way, let’s take a look at some of the Avalanche price predictions that were being made as of 27 July 2023.

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 that saw it climb to $13.30 by 31 July before continuing to climb to $14.50 by 25 August. The site’s technical analysis was, perhaps surprisingly, bearish, with 20 indicators making bullish signals and nine making bearish ones. 

Avalanche Forecast for 2023

In terms of other Avalanche price predictions for 2023, CaptainAltCoin  was rather downbeat, saying AVAX would drop to $9.07 in October before trading at $10.64 in December. PricePrediction.net  was more optimistic, saying it would reach $16.06, and DigitalCoinPrice  was even more bullish, saying the coin would get to $24.32 by the end of the year. 

Avalanche Forecast for 2025

When it came to making an Avalanche price prediction for 2025, DigitalCoinPrice was out in the lead, with a forecast of $46.47. PricePrediction.net came in second, with a figure of $33.58, while CaptainAltCoin was more cautious, saying AVAX would trade at $25.88 in two years’ time.

Avalanche Forecast for 2030

Moving on to a more long-term Avalance price prediction for 2030, PricePrediction.net was the most optimistic, saying the coin would be worth $205.13 that year, while DigitalCoinPrice had it at $138.08. CaptainAltCoin had an AVAX price prediction that saw the crypto trade at $64.70 at the start of the next decade. 

Is Avalanche a Good Investment?

It is hard to say. On one hand, Avalanche is one of the larger blockchain platforms out there, and the fact that it has managed to grow its daily user base is encouraging. 

Avalanche Vista’s launch could also see an increase in interest in the platform.

On the other hand, AVAX’s price has not really reflected either the growth in users or Vista’s potential, suggesting investors are still to be convinced of the coin’s usefulness and potential. 

As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in AVAX.

Will Avalanche go up or down?

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. 

Should I invest in Avalanche?

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.

FAQs 

How many Avalanche are there?

On 27 July 2023, there were 345.9 million AVAX in circulation out of a total supply of 432.6 million.

Will Avalanche reach $100?

It might do, but not for some time. PricePrediction.net has it in three figures in 2028, while DigitalCoinPrice says it will get there in 2029. CaptainAltCoin also thinks it will reach $100, but possibly not until 2040. 

Keep in mind that AVAX has traded at more than $100 before, but it has not reached that level since early December 2021. 

What is Avalanche used for?

The AVAX coin is used to support and secure the Avalanche blockchain. 

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.