People who were crazy enough to buy Avalanche AVAX a few days after it was made available to the public have seen their investments grow more than 15,000%. That's crazy, even by the standards of the fast-paced cryptocurrency universe. But the facts are there for everyone to see, and only hardcore cryptocurrency skeptics will dispute the potentials of digital currencies.
If you are like most objective investors, you will be wondering how far Avalanche AVAX will go in the coming year. If you are an ardent cryptocurrency investor, then you may be considering investing in the token for the long run. Considering how well the industry has performed, ten years is enough time to make it big with any reasonable investment. But then, can Avalanche AVAX make you rich in ten years?
Predicting the potentials of a cryptocurrency is often difficult. There are several factors to consider when trying to figure out how a digital currency will perform in the future. Careful analysis of its past and current standing is important. It is also helpful to consider price predictions from experts and authority websites, though you should never swallow them hook, line, and sinkers.
Here, we are going to discuss everything you need to know to determine whether Avalanche AVAX is a good long-term investment option. We will discuss the coin in a manner that will help you understand it better and get a decent idea of what the future holds for it. In the end, you should be able to decide whether to invest in it, ignore it, or even trade it on a short-term basis.
Content:
- What Is Avalanche?
- How Does Avalanche Work?
- What Major Problem Does Avalanche Solve?
- Is Avalanche (AVAX) A Good Investment?
- Will Avalanche make You Rich in Ten Years?
- Price History Of Avalanche (AVAX)
- Recent Performance and Current Standing Of Avalanche
- AVAX Price Prediction
- Where Will Avalanche Be In the Next Ten Years?
- Weighing The Pros And Cons Of Investing In Avalanche
- Should You Play The Long-Term Game With Avalanche (AVAX)?
- Final Words
What Is Avalanche?
Avalanche is a blockchain ecosystem that supports the creation of decentralized applications and custom blockchain networks. Created by Ava Labs, Avalanche was launched to be a platform of platforms. It serves as a secure, globally distributed, decentralized network, and it is loved by developers because of its unique design and advanced functionality.
Avalanche is not like most other cryptocurrency projects. It has a unique architecture that makes it powerful, fast, and efficient. Its core, which is also called the primary network, is made up of three blockchains that serve three distinct functions. They include the Exchange Chain (X-Chain), the Platform Chain (P-Chain), and the Contract Chain (C-Chain). The three chains also use different consensus mechanisms to perform their functions optimally.
Avalanche is similar to Ethereum and other smart contract platforms. However, it outperforms most competitors in key areas. Obviously, the creators designed to network to achieve the best possible transaction speeds and costs. Due to its unique design and uncommon features, Avalanche is loved by developers. It makes their works easier, faster, and more affordable. It is also performing really well because of its interoperable nature. It is compatible with Ethereum Virtual Machine (EVM), which makes porting projects from Ethereum to Avalanche easy.
Like every other important cryptocurrency project, Avalanche has a native currency. The Avalanche native token is the digital currency that powers the network. Simply called AVAX, it is the digital asset investors can buy and sell for profit-making. It is the digital currency you will have to buy and hold if you believe investing in Avalanche will make you rich in ten years.
Read Also: What Is Avalanche? Should You Invest In AVAX And Where To Buy It?
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Does Avalanche Work?
As mentioned earlier, Avalanche is similar to other smart contract platforms like Ethereum, Polkadot, and Cosmos. It can host and power a wide range of decentralized applications, including custom blockchains. Avalanche can also host all kinds of DeFi protocols and non-fungible tokens (NFTs). Developers can build and deploy custom private and public blockchains as subnets of Avalanche.
We’ve also mentioned that Avalanche’s core is made up of three blockchains performing three distinct functions and using different consensus mechanisms. The X-Chain is responsible for managing and exchanging AVAX (the native currency of Avalanche) and other assets within the ecosystem. The P-Chain is responsible for the creation of subnets and also coordinates validators. The C-Chain is responsible for the creation and management of smart contracts. The X-Chain uses the Avalanche consensus mechanism while the P-Chain and the C-Chain use the Snowman consensus mechanism.
The Avalanche network is powered by AVAX, the native currency. It is a hard-capped and scarce asset that serves a number of purposes in the network. It can be used to pay for fees, it can be used to secure the network through staking, and it provides a basic unit of account between the subnets created and/hosted within the ecosystem. Of course, AVAX is the currency you will buy and sell as an investment vehicle in the Avalanche ecosystem. It is available across different exchanges, brokerages, as well as other kinds of investment/trading platforms/apps.
What Major Problems Does Avalanche Solve?
Like most recent projects within the industry, Avalanche attempts to solve the blockchain trilemma. It was also designed to serve as an alternative to Ethereum, which is the most popular smart contracts platform. It is becoming the favourite platform for knowledgeable developers because it combats most of the shortcomings of Ethereum and other old blockchains, including Bitcoin.
Avalanche offers more programmability, advanced features, as well as more functionalities than other smart contracts platforms. It is also a lot faster than Ethereum, Polkadot, and Cosmos. The network claims it can process as much as 4,500 transactions per second (tps). This is significantly better than Polkadot’s 1,500 tps, Ethereum’s 14 tps, and Bitcoin’s 7 tps. Transactions are reportedly finalized in as little as 2 seconds, compared to 60 seconds on Polkadot, six minutes on Ethereum, and 60 minutes on Bitcoin.
Avalanche is also one of the platforms that offer low fees. Users gas fees are reportedly much more affordable than gas fees on Ethereum. Fees for minting assets, staking, and creation of DApps and custom blockchains are also considerably affordable. These fees are burned to benefit all network participants.
Is Avalanche (AVAX) A Good Investment?
From what we have covered so far, it is easy to tell that Avalanche is an incredible platform. It is a worthy Ethereum rival and has won the hearts of many developers. Some are even porting their projects from Ethereum to Avalanche, and with the launch of Avalanche Bridge, we expect the DeFi space to be more competitive, and Avalanche has the potential to perform really well. But does that mean we can conclude that Avalanche AVAX is a good investment and can make you rich in ten years?
There are many ways to determine whether a cryptocurrency is a good investment or not. The design, feature, functionalities, and potentials of the mainnet of the project are only one part of the equation. When you are planning to make a long-term investment, it is important to look at the past, the present, and the future of the coin. We will discuss that real soon.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Will Avalanche Make You Rich In Ten Years?
For Avalanche to make you rich in ten years, AVAX will need to gain considerable value. The coin is currently trading for a little over $100. If it can cross the $1000 mark within the next decade, then it can certainly make big-time investors rich. But what if the coin gain so much value that it starts trading for thousands of dollars within the next ten years? Then it will make most early investors rich. But how possible are our projections?
At the time of writing, the latest data from Coin Market Cap shows that Avalanche ROI is 14,456.88%. That is a lot in just a little over one year. Can we expect such growth in the coming year? Well, from what we know of Avalanche and its potentials, it is possible that we can see even more mouthwatering ROI. The platform has the potentials to compete favourably with Ethereum, so we can also assume that AVAX can get close to ETH in terms of value.
While being optimistic about the future of Avalanche AVAX, it is important to mention that the cryptocurrency scene is a very busy and unpredictable place. Some projects with potentials have failed in the past. There is no guarantee that Avalanche will fulfil all its potentials. It is still possible that the growth we expect in the next ten years can be delayed due to competition and other factors.
Price History of Avalanche (AVAX)
AVAX was launched as an investment vehicle through a successful ICO on 15 July. The ICO Token Price was $0.5. 4.72% of the tokens were available for token sale. The fundraising goal was $9,450,000, but in a matter of hours, $42,000,000 was raised from the ICO.
AVAX was made available in major cryptocurrency exchanges in September 2020, after the mainnet was launched. The token was trading for $5.28 on 22nd September 2020. By 30th September, it traded for $4.14 per token. It started October at $4.33 and remained within that range for weeks until it dropped to $3.81 on 22nd October. On the last day of the month, it averaged $3.78.
AVAX started November 2020 at $3.64 per token. By the 12th, it was trading for $3.49 before recovering over the course of one week. By 21st November, the coin traded for $3.71. It climbed to $4.01 on 22nd, before dropping again. It eventually finished November at $3.70. December 2020 was a bearish moment for AVAX. It started the month at about $3.5 and traded for $3.60 on the 7th. By 14th December, AVAX traded for $3.32 and by 21st, it traded for $3.31. Towards the end of the month/year, the coin lost considerably. It reached an all-time low of $2.79 on 31st December 2020.
2021 has been a wonderful year for AVAX. It started the year at about $3.67 per token, but by 14th January, it was already selling for $8.47 per token. It climbed further to reach $12.69 on the 23rd. It eventually finished the month at $11.96. February was even better for the coin. It was selling for $13.13 on 2nd February but climbed to $28.09 within one week. It reached $55.51 on 11th February, before dropping to $38.51 on 15th. By the 14th, it traded for $40.90 before dropping sharply to reach $25.99 on the 27th. The coin finished February at $26.14.
AVAX started March 2021 at about $27.43. It fluctuated considerably throughout the month. On the 4th, it traded for $27.39 but climbed to $34.28 on the 10th. By the 11th, it was back to $29.81. Another high point was recorded on 21st March when the coin traded for $34.44. By 26th, it has dropped to $25.77. Eventually, the coin closed the month at $29.62. On 2nd April 2021, AVAX traded for $28.35. It climbed to $38.52 on 15th April. Again, it dropped to trade for $26.23 per token on 27th April, eventually finishing the month at $28.01.
The first couple of weeks in May was okay for AVAX, but the last two were not as friendly. It started the month at $32.87 and reached $38.25 on the 8th, remaining within that range till the 15th when it traded for $37.17. By 21st, it was still trading for $24.95 before taking a sharp drop and selling for $19.35 on 25th May. It eventually finished the month at $16.51. It started the month of June at $18.07. The decline continued, and AVAX was selling for $15.37 on 8th, $13.97 on 21st, and $10.24 on 27th June. It eventually finished the month at about $11.36.
The bearish market continued for AVAX in July 2021. It started the month at $11.98 and managed to reach $12.18 on 9th. By 21st, it was down to $9.67, recovering slightly to sell for $11.83 on 28th. It finished the month at about $12.39. AVAX started August at $13.51 per token and reached $18.10 on 14th. It started an upward trend on the 3rd week, reaching $38.50 on 21st August. By 24th August, the coin traded for $46.37 before climbing further to $55.72 on 25th August. It eventually finished the month at $47.54.
AVAX started September 2021 at $39.62 per token but by 7th, it traded for $47.22. By 14th September, AVAX traded for $53.52 and by 18th, it has climbed further to $70.46. It reached $72.55 on 25th September before closing the month at $65.19. It started October at $66.47 and dropped to about $55.21 on 14th. It recovered a bit and eventually finished the month at $62.27.
November 2021 was a special month for Avalanche AVAX. It started the month at $64.29 and climbed to $78.40 by 7th. Two days later, it averaged $91.17. By November 18th, AVAX traded for $108.50. AVAX reached an all-time high of $146.22 on 21st November 2021. It eventually closed the month at $118.61.
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Recent Performance And Current Standing Of Avalanche
December 2021 has seen AVAX fluctuate like most other digital currencies. The coin started the month at $120.88 but dropped to about $92.36 on 5th December. It dropped further in the second week, trading for $78.90 on 14th. AVAX recovered quickly and was back to $111.60 on 18th. By December 22nd, it was selling for about $123.47. The coin ended the year trading at $109.27.
At the time of writing this piece, Avalanche AVAX was trading for $72.75 per token with a 24-hour trading volume of $767,161,227. In the previous 24 hours, it had recorded a low price of $69.33 and reached a high price of $74.51. Its market capitalization is $17,825,690,776, making it the #14 ranked cryptocurrency in the world. Avalanche AVAX’s circulatory supply stands at 245,011,886.37 AVAX, while the total supply is 395,891,290 AVAX.
AVAX Price Prediction
We've discussed AVAX's price history and recent performance, which means you should have a good understanding of its past and present value. What about future prices?
It is difficult to predict how much a digital coin can be worth in the future, but there are algorithms used by experts to make predictions. It is always helpful to look at the predictions from authority prediction websites before making a decision about any crypto coin.
According to Wallet Investor, one of the best prediction sites, AVAX can reach $196.46 by the end of the year. The site is also optimistic that the coin can climb further to reach $811.74 in the next five years (2027).
Digital Coin Price is another important prediction site we can consider. Though the site seems to be positive about the future of AVAX, its latest prediction is not as optimistic as most investors will want. It predicts slow but steady growth for the coin. It predicts that the price of the coin will get to $107.62 in 2022 and get to $216.46 in 2027.
Trading Beasts are known for being pessimistic or too conservative about the potential growth of most coins and its prediction for AVAX doesn’t disappoint in this regard. It predicts that the coin will reach a maximum of $102.53 in December 2022, while the average price for the month will be $82.02. By December 2025, it predicts that the coin will reach a maximum price of $166.57 while the average price will be $113.27.
Long Forecast is another prediction site that is modest with its AVAX’s price prediction. It predicts that the coin can close December 2022 at $56.3. It also predicts that the coin will close 2023, 2024, and 2025 at $95.4, $117.6, and $66.6 respectively.
Check Out: Avalanche Price Predictions
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Where Will Avalanche Be In The Next Ten Years?
Technically, it is impossible to tell where a particular coin can be in the next ten years. However, we can juxtapose the data we have and make an estimation that can be accurate to a certain degree. Does that mean we know exactly where Avalanche AVAX will be in the next ten years? No, but we have our ideas.
Considering how it has grown in one year and the potentials of its ecosystem, Avalanche AVAX can become a very valuable digital asset in the next decade. As mentioned already, the platform can compete favourably with Ethereum, Polkadot, and similar smart contracts platforms. It has also been backed by experienced investors, so we can say it is likely to succeed and become a lot more valuable in the future.
While being optimistic about the future of Avalanche and AVAX, it is important to add that the industry is growing at a very fast pace that makes predicting the future of coins a lot harder. The market is also very risky, which means investors must remain cautious at all times.
Weighing The Pros and Cons Of Investing In Avalanche
It is possible to go through all we’ve discussed and remain indecisive about investing in Avalanche. After all, there are thousands of other cryptocurrencies you can invest in. But if you are still trying to make up your mind about the right move to make, then considering the pros and cons of investing in Avalanche should be the next important thing to do.
Pros:
✅ Avalanche is an incredible blockchain platform that can host several other platforms that can transform different industries in the near future.
✅ Avalanche is better and a lot faster than most competitors, including Ethereum, Polkadot, and Cosmos.
✅ Avalanche charges low fees when compared to similar smart contracts
✅ Avalanche is energy-efficient, meaning it will not pose any problem like Bitcoin and other older cryptocurrencies.
✅ Avalanche is bound to explode in the near future.
✅ Avalanche is interoperable with several other blockchains (including future projects), which means it will not be in direct competition with many projects.
✅ Avalanche is a highly secured platform, which means your investment will be safe.
✅ Avalanche has grown so much in just one year, and it is likely to grow even bigger as the ecosystem continue to expand.
✅ AVAX price is still considerably affordable, especially when you consider how much it can be worth in the coming years.
✅ Avalanche is backed by several notable investors and have meaningful partnerships – you will be in good company if you invest.
Cons:
❌ Like other cryptocurrencies, AVAX is a volatile asset, which means it is risky to trade or invest in it.
❌ AVAX is now considered expensive, especially when you consider the fact that it was selling for less than $5 throughout 2020 and early 2021.
❌ Avalanche is a relatively new project, and though it looks promising, no one can accurately predict how well it will perform in the future.
❌ It is expensive to become an Avalanche validator, so the average investor cannot achieve that.
Should You Play The Long-Term Game With Avalanche (AVAX)?
Based on what we have discussed so far, you can tell that Avalanche is a great platform of platforms. AVAX is also a remarkable digital coin that can become a lot more valuable in the future. But does that mean you should play the long-term game? In other words, should you invest in Avalanche AVAX for the long term?
From all indications, AVAX is likely to become a lot more valuable in the future. But no one can tell if a single AVAX coin will be truly worth thousands of dollars in the future. If you are an ardent investor, you can take the shot and play the long-term game with AVAX.
Playing the long-term game with AVAX doesn't necessarily mean you have to invest and wait for ten years before cashing out. The coin is likely to gain value with time, and you can cash out whenever you feel like it. You can wait for five years or ten years or more. However, you should always monitor the market to know when to cash out.
Final Words
Avalanche is a really good blockchain platform with the right infrastructure to support other projects. The native currency (AVAX) has grown significantly in just about a year on the crypto market. It really looks like a good investment and will likely become a lot more valuable in ten years’ time. This means it can make you rich in ten years.
While being optimistic about the potentials of AVAX, you should always remember that cryptocurrencies are really volatile. Investing in AVAX, therefore, is risky.
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