Avalanche Network Grew 100% in 2023 — Can AVAX Momentum Continue In 2024?

Key Takeaways

• Avalanche’s network addresses doubled in 2023.
• The AVAX price rallied 470% from October to December.
• That platform’s vision for 2024 aims to rival Ethereum.

In 2023, the Avalanche network experienced remarkable growth, doubling its addresses, as reported by Ava Labs’ President, John Wu . In a recent interview on the Thinking Crypto podcast, Wu highlighted the network’s significant expansion. He revealed Avalanche currently operates 20 live subnets, with expectations to launch more than 80 more within the year.

Meanwhile, the price of AVAX rose by 483% from October to its December 23 peak of $50. In 2024, we saw a downtrend that brought the price back to $30, but is now up again at $40. Will this bullish momentum continue moving forward? 

Avalanche 2023 Growth 

Wu attributed this growth to the network’s scalability and speed, thanks to its consensus protocol, which ensures instant transaction finality. He noted the integration of Vryx and HyperSDK technologies. These allow subnets to handle up to 100,000 transactions per second.

Additionally, Wu discussed Avalanche’s collaboration with Amazon. The platform is helping the tech giant provide computing power and storage for crypto companies through Amazon Web Services.

A notable partnership with JP Morgan was also mentioned. Here, Avalanche has developed solutions to tokenize alternative assets and quicken settlement processes, showcasing the network’s ability to bridge traditional finance and the blockchain.

What’s Expected for Avalanche in 2024?

Kevin Sekniqi , co-founder of Avalanche, has outlined an ambitious vision for the blockchain’s development in 2024. The scheme aims to position it as a competitor to Ethereum. Sekniqi’s goals include technical enhancements to the Avalanche protocol to reduce transaction finality time from two seconds to under 250 milliseconds. 

He also plans to introduce optimistic fast finality. This could, potentially, achieve transaction validation in a fraction of a second, making Avalanche one of the fastest blockchains.

Beyond infrastructure upgrades, Sekniqi emphasizes enhancing the Avalanche ecosystem to attract more developers and users. Initiatives include advancing the Avalanche Wallet Messaging (AWM) and Teleporter features for seamless asset and data transfers across Avalanche chains and enriching the HyperSDK development kit to offer developers a comprehensive set of customizable tools.

A key innovation is the HyperVM, a high-performance virtual machine by Ava Labs, which Sekniqi believes could redefine network capabilities and the broader crypto landscape.

AVAX Price Analysis 

When the price of AVAX surged past its bear market formation on November 1, it sparked an impressive 470% rally. The value rose from $9 on October 19 to $51 by December 24.

Despite recent bullish momentum, our analysis still suggests a potential downturn as part of a correction phase. This prediction remains unchanged, even with the current price increase. A move above $41 could signal the possibility of setting new records.

Currently, AVAX encounters resistance at a descending trend line from its December peak, which may result in a price pullback and subsequent decline.

Should this represent the start of a sustained bullish period for Avalanche, we could be looking at its initial bull market correction. A crucial support area could be around $20, corresponding to the 0.5 to 0.618 Fibonacci levels.

After this, AVAX seems likely to go back up, aiming to surpass its previous peak.

Disclaimers

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.

About the Author

Nikola Lazic

Nikola Lazic is a cryptocurrency analyst and investor working in the industry since 2017. He holds a bachelor's degree in Sociology, which enables him to better understand the psychology behind the crowd´s positioning. Consequently his preferred analytical tool is Elliott Wave Theory in combination with price action analysis. Combining his experience in trading and investing with knowledge in content writing he strives to bring the most accurate and actionable information. Expertise: Cryptocurrencies, Technical analysis, Elliott Wave Theory, On-chain metrics, Research reports.

See more

[email protected] LinkedIn