5 Reasons Why Avalanche Could Double Your Money In 2022

Last Updated February 1st 2022
10 Min Read

Avalanche is one of the most advanced cryptocurrency projects on the market and if developer claims are to be believed, it could be one that has solved the notorious blockchain trilemma by providing a platform that is scalable, decentralised and secure. 

Capable of supporting all manner of DeFit projects, decentralised apps and NFT creation, Avalanche delivers some of the most impressive transaction speeds on the market and its unique three-tier infrastructure gives the platform a technical superiority that could make it a true Ethereum Killer in the very near future.

As the cryptocurrency market looks to recover from a protracted downturn, many investors predict that the impending recovery could see new projects take a leading position - and Avalanche is one project that has all the credentials to be one of the leading platforms in the space. 

After a hugely successful year in 2021, the platform’s native token, AVAX, has become highly sought after and was propelled to an all-time high as recently as November, with a growth of almost 5000% for the year. Naturally, this has made Avalanche a major talking point amongst cryptocurrency investors. 

5 Reasons Why Avalanche Could Double In Price In 2022

DeFi cryptos have grown exponentially over the last couple of years, which has been great for the cryptocurrency market but has inevitably put a major strain on the smart platforms that such projects are built on. Ethereum, for example, has seen major congestion as demand for DeFi has surged in recent months. 

There is now a dire need for blockchains that can deliver super-fast speeds, whilst remaining completely secure and able to grow to meet the evolving needs of DeFi. Avalanche is touted as the fastest project on the market and, on paper at least, is capable of meeting the requirements of even the most traffic-intensive DeFi protocols. 

So is Avalanche a sure thing for 2022? Below, we’ll be looking at 5 reasons why Avalanche could double your money in the coming years, as well as considering how it measures up against any competition. 

1. Avalanches multi-chain structure

One of the reasons Avalanche is so well placed to grow in value over the coming year is simply its design. When it comes to technical fundamentals, the project is right on the cutting edge and its proprietary three-chain architecture means it can be adapted to support just about any DApp or DeFi protocol. 

The Exchange Chain, designated the X-Chain, is the base layer that handles the transacting of the AVAX token. AVAX is the native token of the platform and is used to pay all fees relating to its use. It is also the X-Chain that supports the Avalanche Virtual Machine as well as the overarching consensus protocol for the wider system. 

In addition to the X-Chain is the C-Chain, or Contract Chain. As the name suggests, this is the layer that processes smart contracts and is where developers can build there own DApps and protocols. The C-Chain has a major advantage in that it is Ethereum Virtual Machine compatible, which we will come to later. 

Finally, the Platform Chain is where new projects can be built on top of the Avalanche protocol. New blockchains - referred to as subnets - can operate completely independently of the underlying protocols, with the P-Chain keeping track of validators on behalf of the projects it hosts. The P-Chain uses the Snowman consensus mechanism. 

Whilst the inner workings of Avalanche are hugely complex and beyond the understanding of the average investor, understanding the basic fundamentals of what makes Avalanche stand out from the competition is key to understanding its potential. 

2. The Avalanche Developer Community

Given that Avalanche has positioned itself as a platform that can implement and support even the most demanding projects, it stands to reason that fostering a large and active developer community will be a critical factor in its future success. 

Fortunately, the platform has done extremely well on this front. Over the course of the last year or so, the Avalanche developer community has grown threefold and there are now over 300 developers working full time with the platform - making it Avalanche amongst the top five fastest-growing developer communities. 

These developers can be broadly split into two camps. There are those that work directly on the Avalanche protocol, seeking to propose new upgrades and improvements to better the underlying system. Then there are those developers who are building the wider Avalanche ecosystem, developing dApps, querying protocols and block explorers to enhance Avalanche’s capabilities and offer additional tools for projects that might be seeking to migrate to the platform. 

Ava Labs - the organisation behind Avalanche - has also not shied away from investing in the development of its infrastructure. Ava Labs is infact part of a group that has created the $200 million Blizzard Fund, which is aimed at helping developers who are looking to build on the platform. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

3. Avalanche’s C-Chain is EVM Compatible

Few people would disagree that Ethereum is still king of the hill when it comes to DeFi and the more advanced blockchain projects. Whilst Avalanche may well post superior numbers when it comes to speed and scalability, developers behind the platform were smart enough to make Avalanche Ethereum Virtual Machine compatible. 

However, it isn’t just that they have made the platform EVM compatible, it is the strategy they have used for doing so. Avalanche has its own virtual machine that is built on the X-Chain. This gives Avalanche its own environment that can remain unique to the platform. It is the C-Chain that effectively allows any Ethereun app or smart contract to be deployed on Avalanche. 

This is a smart approach from Avalanche as it effectively gives the platform the best of both worlds. It can seamlessly integrate with many of the industry’s top DeFi projects via the C-Chain, but ultimately this is isolated from the wider Avalanche ecosystem, which is a plus point for both security and the strengthening of Avalanche’s USP. 

4. Avalanche’s Impressive Partnerships

No matter how advanced a cryptocurrency project might be, there’s only so far it can get without support from the wider business world. Fortunately, Avalanche has already forged some pretty significant partnerships with some major institutions and has over 250 projects currently being built on its platform.  

Arguably the most significant is an alliance with Big Four accountancy firm Deloitteto to develop 

To build a new disaster recovery platform on Avalanche that will provide states and local governments a means of demonstrating their eligibility for emergency funding and streamline disaster reimbursement applications. 

In addition to this, Avalanche has now integrated data feeds form Chainlink - one of the leading oracle platforms on the market. This means that the DeFi projects running on Avalanche now have access to reems of external data, which will provide a huge boost for Avalanche-based projects and potentially entice new ones to join the platform.

Finally, Avalanche has also been selected for Mastercard’s blockchain-focused version of its “Start Path” business-accelerator program. The project started in 2014 and is intended to help start-ups take things to the next level. Obviously, this sort of backing could provide a huge boost to the Avalanche project and is only likely to have a positive effect on its value. 

5. AVAX

Another reason that Avalanche could see further success in 2022 is simply the AVAX token. The project’s native cryptocurrency had a remarkably year in 2021, first soaring by 350% in early January, then hitting a milestone of over $50 per token. In November - swept up in a wider market upswing - AVAX hit its all time high of $144.96.

Of course this is all in the past, but another great aspect of Avalanche is just how easy it is to stake the token. Whereas some bigger platforms offer staking but in reality require some pretty high-end computing power, most personal computers can meet the hardware spec needed to stake AVEX, meaning holders of the token can set up a nice sideline of income by staking, earning up to 9.75% when conditions are favourable.  

AVAX also has a high burn rate, with 100% of all transaction fees being taken out of circulation. Technically, this does not make Avalanche a deflationairy project, but it does reduce the number of AVAX token in ready supply, which could help to keep its price steady. At the time of writing, some 700,000 AVAX have been burned, equivalent to over $50 million.

Check Out: How To Make (Or Lose) Money With Avalanche

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

What Are Analysts Predicting For Avalanche In 2022?

We’ve already discussed the potential of the AVAX tokeny and it seems that many analysts also believe the token can perform well in the months ahead. DigitalCoinPrice, for example, expects AVAX to consistently trend upwards throughout the year, increasing around 35% by April to  $96.8. Following a turbulent summer, the altcoin is then expected to reach $105.80 in December, before continuing to perform well in 2023. 

Elsewhere, WalletInvestor is predicting significant growth for AVAX in 2022. According to ita technical analysis, the token could soar past  $100  as in May and continue to rise over the summer, possibly reaching as high as $150 in August. Going into December, WalletInvestor suggests that AVAX could reach a maximum trading price of $211.69. 

Finally,  TradingBeasts, often more reserved with its price forecasts, is also predicting good things ahead for AVAX.  Its data shows that the token will struggle in the early months of 2022, climbing up to 0.18% heading into the summer. However, after a turbulent June and July, AVAX is expected to have reached  $77.75 in the final months of the year, which represents growth of around 16% on its price at the time of writing. 

Don't Miss: Avalanche Price Predictions

Is Avalanche An Ethereum Killer?

Ever since Ethereum revolutionised the cryptocurrency market back in 2015, it seems that the race has been on to develop the next generation of smart chain, with every new platform seemingly dubbed the next ‘Ethereum Killer’. So does Avalanche have the credentials?

The short answer is yes. Avalanche has all the technical capabilities to surpass Ethereum, especially with its three-chain system. In addition, it is also compatible with EVM, which makes it simple for Ethereum-based projects to simply port over.

However, investors shouldn’t get too excited just yet. Other projects, including Solana, Cardano and Binance Smart Chain could also be said to have the edge over Ethereum, yet they have yet to surpass it in terms of value or the number of projects on their platforms. It’s also worth bearing in mind that Etheruem is undergoing significant upgrades. So it would seem the battle of the smart chains is still very much on. 

Conclusion - Is Avalanche A Good Investment In 2022?

Avalanche is an advanced project that could help the cryptocurrency sector ascend to the next level by providing a platform that can meet the ever increasing needs of the burgeoning DeFi industry. On paper at least, Avalanche’s three-tier system is certainty fast enough, whilst remaining secure and decentralised. 

We’ve seen how Ava Labs has already forged some pretty solid connections, partnering with the likes of Deloitte and Matercard to further push cryptocurrency in the mainstream. Then there’s the impressive Blizzard Fund, which could yield untold benefits further down the line.

From an investment perspective, the AVAX coin has solid tokenomics and, as we have seen, many analysts believe it will grow in the coming months and there are those out there who believe Avalance could quite literally double your money in 2022. Of course, such predictions are highly speculative but they are nonetheless a vote of confidence in Avalanche’s capabilities

It may be too early to laud Avalanche as the Ethereum Killer that it has been suggested to be, but any investors looking for a project to add to their portfolio could do a lot worse than to consider Avalanche. The project has all the technical credentials to be a market leader and if AVAX performs well in the coming months, we could see Avalanche establishing itself amongst the top-tier cryptocurrency platforms. 

How To Buy Avalanche Coin?

If you want to invest in Avalanche, then you’ll need to acquire some AVAX tokens. Assuming you already have a cryptocurrency wallet then the next thing you’ll need to do is find yourself a reputable broker or exchange that lists the token.

We think that eToro meets the needs of most investors, as the platform has a highly approachable trading interface that is suitable for beginners as well as more experienced traders. eToro also has plenty of information on different tokens as well as the latest charting technology to help you plan your future investments. 

To open an account, you’ll need to provide a few details and verify your identity, but typically this can be done in just a few minutes. Then you’ll be able to access the trading platform and add AVAX to your portfolio.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Why Avalanche Could Double Your Money FAQs

What is Avalanche?

Avalanche is one of the most advanced blockchain projects on the market, toffering unrivalled speed as well as a high degree of interoperability. It also achieves this whilst remaining secure and decentralised. Avalanch’s key feature is its three-chain system that allows for the transacting of its native AVAX, the exchange of smart contracts and a means for developers to create new blockchains - and all across three separate layers that interact seamlessly with one another.

Will Avalanche double my money in 2022?

It’s never a good idea to assume 100% growth when investing in any asset. Realistically, most analysts point to growth, and whilst some do suggest that AVAX could double your money, we feel it’s better to err on the side of caution and perhaps consider a conservative estimate of 10 - 15% growth if conditions are favourable.

Where can I buy Avalanche?

If you want to buy AVAX then the good news is that you’ll find it listed on one of the world’s most popular trading platforms eToro. All you need to do is open an account and you’ll not only gain access to eToro’s award-winning trading platform but also its wealth of information and learning resources.

Is Avalanche and Ethereum Killer?

Avalanche certainly has the technical credentials to go head-to-head with Ethereum and at the time of writing it is the faster of the two platforms. It also has the advantage of offering EVM compatibility. However, the Ethereum 2.0 upgrades are yet to be completed, so who knows which platform will win out in the long run.

How many projects are built on Avalanche?

One of Avalanche’s major strengths is its commitment to building a strong developer community. At the time of writing, it has been said that there are over 250 projects being developed on the platform.

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