Why Is Avalanche (AVAX) So Cheap?

Last Updated January 24th 2022

7 Min Read

Why is Avalanche (AVAX) token so cheap in 2022? Is Avalanche worth buying, and if yes, should you buy it today while it is selling for cheap?

Well, we can attribute Avalanche's relatively low price to a number of factors, including the fact that it is relatively new and the demand for AVAX token prices is still low. Having been around for slightly over a year, Avalanche is a new altcoin that is still in price discovery. The fact that it is new and blockchain adoption and acceptance has been slow imply there has been limited use case for AVAX tokens outside of the speculative investment interests, which keeps its demand and price low.

Understand, however, that the cheap price doesn’t necessarily imply Avalanche is of low value. On the contrary, CoinMarketCap currently ranks Avalanche as the 11th most valuable altcoin with a live market cap of $21+ Billion. Further, AVAX has, at the time of writing, a per-token valuation of around $90, which makes it 60X more valuable than the Cardano - the 5th most valuable crypto asset.

Why then do we say Avalanche is cheap? Because we believe the altcoin is massively undervalued and that it could be worth much more than its current market price. We also consider Avalanche to be cheap because we believe it hasn't lived to its true price potential.

Moving forward, virtually everyone in the crypto community expects Avalanche token prices to continue rising. Some are especially confident that Avalanche has everything it needs to grow its value by as much as 5000% before 2030.

Should we then consider buying AVAX while it sells for cheap? Importantly, will Avalanche's price rebound?

We answer these and expound more on the reason why AVAX is cheap below.

First, though, we look at its price history to see how it arrived at this s undervalued price.

Avalanche (AVAX) Price History 2020 To 2022

Avalanche tokens were first availed to the public through an ICO in July 2020, where each AVAX token sold for $0.5. It then premiered in the open markets in September and ended its first day of trading selling for $4, according to price data on CoinMarketCap.

Soon after launching, its value skid and hit its current all-time low of $2.79 on 31st December 2020.

This was followed by a swift rebound in 2021 when AVAX token prices rallied to $50 in the first week of February, sparked by the price run that swept the entire crypto market at the time. Its price action would then get into sync with that of the larger crypto market, dipping when the market crashed in May and embarking on after June.

Avalanche's greatest price run would, however, come about in November when the altcoin's price peaked above $100. Within the first three weeks of that month, it grew its price by more than 230% to get to its current all-time high of $146.

The further uptrend has, however, been prevented by the surprise December 2021 sell-off and the bearish sentiments dominating the market today.

Why Is Avalanche(AVAX) So Cheap?

In addition to the fact that Avalanche is lowly priced because it is relatively new and still in price discovery, we have explained below three more reasons why we believe AVAX selling for cheap in 2022:

Indecisive crypto market: It is an open secret that Avalanche tokens price action takes a cue from the performance of the larger crypto market. This explains why AVAX prices will only rise when the market is rallying and fall when the market crashes. Throughout December 2021 and so far in 2022, the crypto market has been rather indecisive, bordering bearish, with its next price action. This has stalled Avalanche's further uptrend, and we fear that a continued dominance of these bear sentiments will arrest the coin's journey towards $1000 by December 2022, as predicted by some optimistic analysts back in 2021.
Limited use case: Even though the Avalanche blockchain has witnessed a sharp rise in developer activity, most of the dApps developed here are only used by a handful of individuals. This says that there is little you can do with AVAX tokens outside of speculating and betting on their next price direction. And seeing that the price of most altcoins is determined by the forces of demand and supply, the low demand has and will continue keeping AVAX token prices trading below their optimal price unless there is a radical shift in the Avalanche blockchain.
Bloated maximum token supply: Avalanche's bloated maximum token supply is expected to keep the altcoin prices trading way below per. Look at it this way, Avalanche has a maximum supply of 720 million AVAX tokens, but until today, only half of these are in circulation. As AVA labs release more tokens, they will have the net effect of diluting the price of existing altcoins which will, in turn, keep AVAX tokens prices selling for cheap for a long time.

Check Out: Should You Buy Avalanche (AVAX)? 4 Pros, 4 Cons

Should I Buy Avalanche (AVAX) While It Is Cheap?

Yes, you should consider buying Avalanche tokens while they sell for cheap today because their value is expected to rise in the foreseeable future.

According to crypto analysts at PricePrediction.Net, Avalanche's per token value will most likely grow by 770% and 4900% in the next 5 and 10 years to reach $690 and $4440, respectively.

You, therefore, stand to grow your investment by this much if you buy AVAX today and hold, assuming that its value grows as predicted by this forecaster.

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

Is Avalanche (AVAX) Worth Buying?

Yes, Avalanche is worth buying in 2022 because it has proven to be a highly valuable long-term investment. This is evidenced by the fact that it has not only performed exemplary well in the past, but it has also proven to be a massively resilient crypto asset with a massive potential for future growth.

Between July 2020 and today, for instance, Avalanche tokens value has appreciated by more than 18000%, making it one of the fastest-growing crypto assets.

Its resilience can, on the other hand, be seen in its ability to recover quickly from even the most volatile market crashes. In mid-May 2021, for example, the crypto market suffered the biggest crash yet, and AVAX token prices fell by more than 70%. This, however, didn't prevent it from recovering and going ahead to set its current all-time high price 5 months later.

Moving forward, the majority of analysts are confident that Avalanche token prices will rise perpetually. Most are even confident that it will outperform such pioneer coins as Bitcoin and Ethereum.

Technical analysts at Gov Capital are, for instance, confident that AVAX token prices can grow by more than 340% in the next 12 months to reach $310 and by as much as 2700% in the next 5 years to reach $2,450.

These bullish sentiments about the future of Avalanche are shared by crypto gurus at Coinpedia, who expect the altcoin to grow by 380% to reach $350 in 12 months and by as much as 900% in the next 3 years to reach $800 by 2025.

As seen here, the general feeling in the crypto community is that Avalanche token prices will continue rising. You should, therefore, consider investing in AVAX today if your goal is growing your invested capital.

Don't Miss: Avalanche Price Predictions

Will Avalanche (AVAX) Bounce Back?

Yes, it is highly likely that Avalanche will rebound, rise above its current all-time high, and resume its November 2021 uptrend soon. The majority expect it to have recovered before 2025, with several reputable crypto experts and technical analysts expecting it to rebound and rise above the ATH before December 2022.

The all-popular Wallet Investor leads the pack of bullish technical analysts who expect AVAX to rebound and resume its uptrend within the next 12 months. They expect it to almost double its ATH in the next few months and end the year 2022, trading around $242.

Analysts at CryptocurrencyPricePrediction are even more optimistic about Avalanche's future performance and expect it to rebound by March 2022 when it rises to reach $178. By the end of 2022, this analysis indicates that AVAX will most likely have tripled its current market price to reach $290.

Conclusion: Should I Buy Avalanche (AVAX) In 2022?

Yes, and there are numerous reasons to inform this decision, chief among them being the fact that AVAX has massive potential for future value gain. Virtually every price forecasting metric indicates that Avalanche is ripe for an upward price correction, which presents you with an opportunity to grow your capital several-folds over the next few years.

You should also consider investing in Avalanche in 2022 because it is a massively resilient altcoin that is expected to weather even the most volatile market crashes, rebound, and resume an uptrend swiftly.