Wondering if Avalanche (AVAX) is worth investing in 2022? Are you looking for reasons to start investing in Avalanche today? Use this guide to get answers to these and everything else you need to know about investing in AVAX.
For starters, Avalanche performed exemplarily well in the last 12 months and is expected to post even better returns over the next few years, making it a must-buy in 2022. Throughout 2021, for instance, AVAX token prices grew by more than 3300%, and in the next 5 to 10 years, it is expected to post even higher returns than the likes of Bitcoins. Optimists have even indicated that Avalanche and your AVAX investment could grow 30-fold in the next 5 years.
We also note that even though Avalanche has only been around for slightly over a year, the majority of its proponents are convinced that it has all the hallmarks of a good long-term investment. These include having performed exemplarily well in the past, the backing of revolutionary blockchain technology, and massive potential for a future uptick.
But are these enough reasons to buy Avalanche in 2022? We answer this and explore more reasons why you should be buying AVAX today, as well as risks associated with Avalanche investing.
But before that, we need a deeper understanding of Avalanche.
What Is Avalanche (AVAX)?
Avalanche is a highly decentralized and open-sourced blockchain that supports smart contracts. The AVA Network website also refers to it as the “fastest smart contracts platform in the blockchain industry as measured by time-to-finality,” adding that it “ has the most number of validators securing its network of any proof of stake protocol.” Some of its core features include a 4500 transaction-per-second throughput, transaction finality of 2 seconds, uses the proof-of-stake consensus protocol and has thousands of nodes securing the network.
Its launch is credited to Ava Labs, who took it live in September 2020. But its development started when a pseudonymous entity dubbed “Team Rocket” shared the protocol’s fundamentals on the Interplanetary file system in May 2018. It was picked by researchers at Cornell University led by Emin Gun Sirer, who actualized its design and founded the Ava Labs startup in March 2020, which helped with the network and coin’s eventual launch in September.
Today, it has morphed into one of the most sought-after “Ethereum Killers,” primarily due to its low cost, flexibility, and support for an interoperable crypto world. This rising demand for its services has seen it become the 11th most valuable crypto project with a market capitalization in excess of $23 Billion.
AVAX is, on the other hand, the native utility token for the Avalanche blockchain.
Why Is Avalanche (AVAX) So Popular Right Now?
Avalanche has made for interesting news headlines and created a social buzz throughout 2021. Slightly over a year after its launch, AVAX has also managed to become one of the most popular and most talked-about crypto assets in the crypto sphere. Moving forward, and as blockchain adoption and popularity surge, we expect to see its popularity grow even further.
While there are numerous reasons that can be attributed to the said popularity, we reckon that these three - unprecedented value gain, versatility, and growing community - have been the most impactful.
Unprecedented value gain: For starters, Avalanche has attracted the crypto community’s attention with its unprecedented value gain throughout 2021. From an ICO price of $0.5, AVAX token price shot up by more than 16000% in less than one and half years, to storm into 2021, trading around $80. This made it one of the fastest-growing altcoins and helped attract the attention of speculative investors and traders.
Versatility: Avalanche is also popular because it is one of the most versatile proof-of-stake platforms. This is made possible by its ultra-fast transaction speeds, competitive transaction cost, fast transaction finality, flexibility as it is EVM compatible, and readiness for an interoperable crypto world.
Growing community: The unprecedented value gain and versatility have also made Avalanche immensely popular within the crypto circles. It has since attracted a growing number of supporters, comprising developers, speculative investors, analysts, and day traders.
But is this popularity enough reason for traders to buy AVAX tokens?
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Should I Buy Avalanche (AVAX)?
Yes, you should consider investing in Avalanche today because it has been proven to be a viable long-term investment. It has not only posted impressive returns by maintaining a sharp uptrend since its launch but has also proven to be a massively resilient crypto asset.
The majority of crypto analysts and AVAX investors have also confirmed that Avalanche is still new and still in price discovery. They have insinuated that by buying in today, one could be staring at impressive gains over the next few years, with some comparing it to investing in BTC or ETH in their early days.
Crypto analysts at the Wallet Investor, for instance, indicate that if you buy Avalanche tokens today, you are most likely to be staring at capital gains exceeding 250% in the next 12 months and as much as 900% in the next 5 years.
Experts at ICO Creed are equally confident about Avalanche token’s future price performance, which makes it worth buying. Their long-term analysis of the Ethereum killer also suggests that you will most likely grow your investment by more than 820% in the next 5 years and by as much as 3700% in the next 10 years if you buy AVAX today.
But only are as optimistic about Avalanche’s future price action or give AVAX investors a more solid reason to buy Avalanche today than technical analysts at PricePrediction.Net. Here, they predict that if you buy AVAX today, you will grow that investment 10-fold in the next 5 years or more than 45X if you hold for the next 10 years.
So, Is Avalanche (AVAX) Worth Buying In 2022?
Yes, Avalanche is worth buying in 2022 because it is not only expected to rebound get back to its early 2021 peak prices, but its price is expected to continue rising.
Technical analysts at CryptocurrencyPricePrediction confirm that AVAX token price could rebound by March 2022. Their analysis then indicates that AVAX token prices could gain as much as 300% in the next 12 months, which makes it a worthy investment.
These bullish sentiments about AVAX’s price action throughout 2022 is also shared by crypto gurus at Coinquora. They, too, are expecting a swift rebound for Avalanche tokens and are confident that the altcoin could help any of its investors grow their investment 3.5X over the course of the next 12 months.
We also believe that Avalanche is worth buying in 2022 because it presents you with multiple ways through which you can grow your investment. The most popular and beginner-friendly are HODLing and staking, while the more experienced investors can leverage its volatility and earn maximally from active trading.
Still looking for more reasons to invest in Avalanche today? Let us go over a few that AVAX investors and crypto enthusiasts have highlighted as the reasons why they bought the Ethereum killer.
Read Also: The 5 Best Ways To Buy Avalanche (AVAX)
Why Should You Buy Avalanche (AVAX)?
There is an endless list of reasons why anyone should consider investing in the new and massively popular Avalanche token. Here are three more:
Massive potential for future value gain: Chances are high that as blockchain adoption goes mainstream and demand for faster blockchains rises, AVAX token prices will soar. Some analysts are even confident that its value could appreciate by more than 5000% by 2030, making it a better investment than such top-tier cryptocurrencies like Bitcoin and presenting you with a massive opportunity to grow your investment.
Highly liquid: You may also want to invest in Avalanche because it is deeply liquid. It is listed with virtually all the popular crypto exchange platforms, and according to data from CoinMarketCap, its daily trading volume has averaged $950 Million so far in 2022. In such a case, you never have to worry about splitting orders or slippage.
Excellent store of value: We have already mentioned that AVAX will most likely sustain an uptrend in perpetuity. We might also add that AVAX is easily accessible, liquid, and inflation-proof, and all these make it a perfect store of value.
Risks Associated With Avalanche (AVAX) Investment
Like any other cryptocurrency, Avalanche is not immune to different investment risks. The most popular that you have to watch out for include:
Massively volatile: Avalanche is a massively volatile crypto asset with an infinite number of variables influencing its price action. It, therefore, is not uncommon for an altcoin to gain or lose massive value in a relatively short period. We, therefore, advise you to only invest in the altcoin if you can stomach these volatilities.
Stiff competition: Avalanche is also facing stiff competition from the rest of the Ethereum killers. This is evidenced by the fact that even it’s the least expensive and has the fastest throughput, the likes of Solana, Polkadot, and Cardano still beat it when it comes to the community of supporters and market cap. Upgrades and strategic partnerships by these competitors may continue delaying its climb to a top 10 crypto asset.
Bloated supply: Avalanche’s maximum supply of 720 million AVAX tokens will also have a significant in influencing on how high AVAX tokens can get. As more tokens hit the market, they are expected to dilute the altcoin prices, which will hurt investors’ ability to make money off the altcoin, which in turn, sparks disinterest in the token.
Conclusion: Should You Buy Avalanche (AVAX) In 2022?
In reality, the decision to invest in Avalanche or any other crypto asset should be influenced by such factors as your risk tolerance, investment goals, and crypto investing experience. That said, though, experts agree that Avalanche is worth buying in 2022 because not only is its price expected to rebound and resume its 2021 rally, its value is expected to continue rising over the next few years. Much of this value gain will be driven by the growing adoption of blockchain technology and the demand for faster and more versatile crypto technologies.
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