Is Avalanche (AVAX) A Good Buy?

Last Updated January 24th 2022
6 Min Read

Is Avalanche (AVAX) a good investment? Equally important, should you consider buying Avalanche tokens in 2022?

The majority of crypto analysts and investors are confident that Avalanche is a good buy because it has performed exemplarily well in the past and has proven its resilience. Some have also hinted that AVAX is a good buy because it is currently selling for cheap even though its value is expected to rise and possibly reach unprecedented highs over the next few years.

A few crypto experts, led by the technical analysts at PricePrediction.Net, are especially convinced that Avalanche token prices will appreciate by as much as 5000%, helping grow your investment 50-fold within the next 10 years.

This optimism about Avalanche’s future is rooted in the belief that AVAX’s token price will resume its 2021 rally when the crypto market embarks on recovery. It is also rooted in the belief that the need for a faster and low-cost blockchain gives AVAX an intrinsic value. And that this value will rise in line with the growing adoption and acceptability of blockchain and use cases for Avalanche technology.

So, Should You Buy Avalanche (AVAX)?

Yes, you should consider buying the Avalanche token because it has proven to be a good investment. For starters, the altcoin is still in price discovery mode, and most forecasters are confident that its prices will sustain an uptrend for the next few years. Some of the factors that they believe will make this possible include the fact that Avalanche has the backing of a highly innovative and inherently blockchain technology.

You may also consider investing in Avalanche because it has proven to be a highly resilient crypto asset. This is evidenced by the fact that even though it launched during the prolonged 2018 to 2020 crypto winter, it was able to sustain an uptrend as it waited on the early 2021 crypto market rally.

Even when the market crashed in mid-2021 and AVAX shed more than 70% of its value, it had a swift rebound and went on to set its current ATH of $146 less than 5 months later. This tells you that AVAX has the potential to survive even the most volatile market crashes.

Why Is Avalanche (AVAX) So Popular Right Now?

Avalanche has only been around for slightly over a year, during which time it has become one of the most talked-about crypt assets on social media, on crypto forums, and even on mainstream media. And while numerous factors can be used to explain its popularity, here are the four most common:

  • Unmatched value gain: Avalanche has attracted massive interest from speculative investors with its unmatched value gains. It, for instance, has maintained an overall positive ROI exceeding 18,000%, with more than 3000% of this having been gained throughout 2021. These record gains have helped AVAX make it to the top 15 crypto assets and become one of the most talked-about crypto assets.
  • Innovativeness: Avalanche also promises to be the most innovative of the supposed ethereum killers. It is faster in both throughput and transaction-to-finality speeds, charges lower transaction fees, and has an incredibly high number of validators. This has made it the go-to smart contract platform for many developers and incredibly popular in the crypto community.
  • Potential for massive future gains: Crypto analysts and investors are convinced that given its highly innovative blockchain technology, Avalanche token prices will sustain their current uptrend. Some have observed that AVAX’s price will most likely grow by more than 5000% by the turn of the decade, which makes it incredibly popular among speculative investors.
  • Partnerships and collaborations: Since its launch, Avalanche has entered into multiple strategic collaborations that have helped further its popularity. These include the much-publicized partnerships with the likes of Insure Token, Project Galaxy, Deloitte, and MasterCard.

Check Out: The 5 Best Ways To Buy Avalanche (AVAX)

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

Avalanche (AVAX) Price History 2020 To 2022

Avalanche held its ICO in July 2020, selling for $0.5. It then launched in the open markets in September same year with an introductory price of $4, according to price data on CoinMarketCap. But throughout the last quarter of that year, Avalanche token prices dipped, and the altcoin set its current all-time of $2.70 on 31st December.

Its token prices only rebounded and started recovering during the early 2021 crypto market rally. It started the year trading around $11 but rallied to $50 by mid-February. The fact that it was relatively new and such other factors as low use cases and stiff competition from the rest of Ethereum killers kept it trading at relatively low prices. It was not until November 2021 that AVAX reached $100 and went on to set its current all-time high of $146 on 21st November.

But it couldn’t maintain this uptrend because the crypto market tumbled in December. It sparked a sell-off, and the bearish sentiments reigned supreme, resulting in the dipping of most crypto assets. At the time of writing, for instance, AVAX is trading around $90, it is ranked 12th by CoinMarketCap, and has a live market cap of $22.7 Billion.

Will Avalanche (AVAX) Reach $1000 In 2022?  

It is not impossible for Avalanche token prices to rise and reach $1000 before the end of 2022. In fact, the majority of analysts had indicated that it would reach $1000 in the next 12 months when its price was rallying in November 2021. Today, however, the majority of analysts and investors in the crypto market do not expect AVAX to grow by the 1100% needed to get its price above $1000 by December 2022.

Some of the factors standing on the altcoin’s journey here include the limited use case for AVAX due to the slowed uptake and acceptance of blockchain technology. This is in appreciation of the fact that AVAX token prices can only rise if scaled blockchain technology adoption helps spark the rise in demand for such faster and pocket-friendly blockchain services as the ones provided by Avalanche.

At best, crypto analysts expect AVAX to rise above its current all-time high and trade between $150 and $400 by December 2022.

Crypto experts at TechnNewsLeader, for example, expect Avalanche to have a sluggish rebound but eventually rise above the ATH and make it to $153 by December 2022.

Technical analysts at CryptocurrencyPricePrediction are a tad more optimistic about AVAX’s future price performance and expect it to rebound and rise above ATH by March 2022. And by the end of the year, they expect the altcoin to trade around $290.

Analysts at Coinquora are equally optimistic about Avalanche’s future price action. They, too, are confident that Avalanche token prices could rise and break above its current ATH in the first half of 2022 before eventually reaching $350 by the end of the year.

Gurus at Gov Capital, however, have one of the most optimistic views of the altcoin’s future price performance. They expect a swift rebound and an even faster uptick for AVAX as the token prices rise above the current ATH by February before eventually topping $370 by December 2022.

Don't Miss: Avalanche Price Predictions

Conclusion: Is Avalanche (AVAX) Worth Buying In 2022?

Yes, Avalanche has proven to be a good buy in 2022 because it is a viable short to long-term investment. Even though the ongoing bear sentiments have made convinced analysts and investors it would be impossible for AVAX to reach $1000 by the end of the year, they still insist it will sustain an uptrend that takes it above the current ATH before the end year.

The fact that it will continue growing its price and, by extension, your investment makes it worth buying in 2022. Other factors that make it worth buying include the potential for massive value gain - as much as 5000% - over the longer term and its innovativeness. 

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

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