Is Avalanche (Avax) a good investment

Preface

As Top 20, the hottest cryptocurrency – Avalanche. Lots of people investing and today analysts from Bexplus will be analyzing: Is Avalanche a good investment.

What Is Avalanche (Avax)

In 2020, the Ava Labs team launched Avalanche, and several months later, it is one of the most common cryptos globally. However, it never took Avalanche much time to climb at the top of the charts of cryptocurrencies. According to its creators, Avalanche is one of the fastest cryptos. Moreover, Avax has numerous validators safeguarding its activities. In addition, two parties can carry out their transactions without involving an intermediary third party. Users use Avax primarily for financial transactions and cryptocurrency transfers. Avalanche (Avax) can be used in asset and financial work, digital collectibles, and decentralized finance (Defi).

The main reason why Ava Labs created Avalanche is to solve the common problems in blockchain networks today. In addition, Avalanche (Avax) provides viable alternatives to its competitors to easily combat centralization. Therefore, Avalanche (Avax) is decentralized. Avalanche has built on certain features to combat problems associated with other blockchains or networks such as Ethereum. Some of these limitations are functionalities and programmability. There are two types of transaction fees associated with Avalanche (Avax). These two types of fee information are Delegation Fee Rate of 2% and a Validator Fee of 2,000 Avax.

Avalanche (Avax) has outstanding features and technologies. The reason to state this is because Avalanche (Avax) is based on eco-friendliness, high transaction speed and its low cost. In addition, Avalanche aims to deliver a highly scalable blockchain that does not forgo security or decentralization. Today, many networks are trying to produce the world’s fastest blockchain, and Avalanche is a strong contender. Avalanche is trying its best to ensure that crypto is a universal backbone technology in the future.

Is Avalanche a good investment

Avalanche (Avax) Price History

September 2020 – December 2020

After Ava Labs launched Avalanche (Avax) in September 2020, its entry worth in the market was $4.99. In addition, this was the month that Avalanche (Avax) price attained a high of $11.46 in this duration. However, the price decreased slightly to $4.32 in October. In November, the price decreased even further to $3.65. Finally, in December, the price increased slightly to $3.69. This was also the month that Avax attained the lowest value. In December, Avalanche’s (Avax) price reached the lowest value of $2.79.

January 2021 – June 2021

Avax’s price in January 2021 began at $3.15. This was depreciation from December’s value of $3.69. However, there was an increase in Avax’s price in February 2021. Avax’s new price in February increased to $13.52 from $3.15 in January. The price further rose in March to $23.88. This was a very high increase. Avalanche’s (Avax) price further increased in April and May. Avax’s price in April was $28.73. The price further increased in May to $32.9. However, Avax’s price depreciated in June to $18.16. In this period, Avax reached its highest price of $59.94 in February. On the other hand, Avax reached its lowest price of $3.05 in this period in January.

July 2021 – December 2021

At the beginning of this period, Avax’s price was $11.95. This was depreciation from the previous value of $18.16. However, the price appreciated significantly to $13.53 at the beginning of August. In September, the price skyrocketed to $39.54. Therefore this was a significant increase. Furthermore, the price appreciated further to $66.63 in October. However, there was a slight decrease in November. As a result, Avax’s price depreciated to $64.5. There was a massive increase in Avax’s price in December as Avax’s price was worth $120.25. In this period, Avax attained an all-time high of $146.22. Avax reached this value in November. On the other hand, Avalanche (Avax) achieved a low price of $9.34. Avalanche (Avax) attained this value in July 2021.

Avalanche (Avax) Price History Summary

Certainly, based on Avalanche’s (Avax) price history, you can understand the token’s history price trajectory. Therefore, the table below is the detailed Avalanche’s (Avax) history price from September 2020 to December 2021.

YearMaximum PriceMinimum Price
September 2020- December 2020$11.46$2.79
January 2021- June 2021$59.94$3.05
July 2021- December 2021$146.22$9.34

Comparison Between Avalanche (Avax) and Other Cryptocurrencies

Bitcoin vs. Avalanche (Avax)

People have continuously compared Bitcoin and Avalanche. However, there is a need to note that both are better cryptocurrencies depending on the criteria you are differentiating them. For example, Avalanche has a more significant upside potential compared to Bitcoin. Therefore in terms of potential return on investment, Avalanche is higher than Bitcoin. However, in terms of community acceptance and network effect, Bitcoin is higher than Avalanche (Avax). The reason to state this is because Bitcoin has over 40% market cap in the crypto market, which is the highest of all cryptocurrencies. However, both Bitcoin and Avalanche (Avax) are decentralized. Here is a simple comparison of Bitcoin and Avalanche (Avax).

BitcoinAvalanche (Avax)
It has a supply of 21 million coins.It has a supply of 720 million coins.
More than 90% of coins are in circulation.Only more than 25% of total coins are in circulation.
Bitcoin blockchain usually processes approximately seven transactions per second.Avalanche can process over 4,500 transactions per second.
There is mining capability.There is no mining capability.

Avalanche (Avax) vs. XRP

Both Avalanche (Avax) and XRP are known best for payments purposes. You cannot mine these two cryptocurrencies. XRP is one of the fastest cryptocurrencies up to date. On the other hand, Avalanche (Avax) has the most validators. Furthermore, the validators tend to secure Avalanche’s activity of any proof-of-stake protocol.

XRPAvalanche (Avax)
Price $0.728.Price $83.544.
Market cap $34,636,584,798.Market cap $20,409,361,886.
Available supply $47,577,200,000.Available supply $244,296,000.
It has a higher processing speed of 1000 times in a second.4,500 transactions per second.

Avalanche (Avax) vs. Cardano

Most investors tend to choose Cardano over Avalanche (Avax). The reason they do so is because of Cardano’s higher market cap. For that reason, a higher market cap indicates that a cryptocurrency is less risky. 

FactorAvalanche (Avax)Cardano (ADA)
BlockchainIt utilizes three different blockchains.It uses singular blockchain technology.
Speed45,000 transactions per second.230-260 transactions per second.
LayersRun several blockchains and smart contracts.Only smart contracts.
SupplyMaximum of 720 million.Maximum of 45 billion.
Market cap$20,439,151,945.$37,625,981,336.73.

What Do People Think About Avalanche Investment

Most people believe that cryptocurrencies are volatile. However, they still believe in investing in some of the cryptocurrencies available in the market. Some people also believe that Avax is one of the best cryptocurrencies to invest in. However, this is a conclusion done by people who have carried out comprehensive research on Avalanche (Avax). For example, people may compare Avalanche (Avax) with other cryptocurrencies. This may be specifically regarding potential return on investment, utility, community acceptance, and network effect.

People nowadays prefer Avalanche (Avax) due to its rank in the market. In addition, it is one of the newest cryptocurrencies in the markets whose worth is skyrocketing every day. Furthermore, investment agencies predict that Avalanche’s (Avax) worth will increase. Therefore, different people around the globe don’t have second thoughts about investing in Avax. However, as earlier stated, cryptocurrencies are volatile.

Furthermore, there have been cryptocurrencies that have failed significantly in the past. Therefore, investing in cryptocurrencies is very risky, and Avalanche (Avax) is not exempt. People investing in Avalanche (Avax) may gain high profits or suffer significant losses. However, people have opted to invest in Avalanche (Avax) regarding many investment agencies.

Frequently Asked Questions

Where To Buy Avalanche (Avax)

You may quickly and conveniently purchase Avalanche (Avax) in some of the best online exchange platforms such as Bexplus, Gemini, Binance, and Coinbase. However, you need to compare some of these platforms to know which is the best platform. For example, you may compare the trading pairs and the transaction costs. Nonetheless, if you don’t have an account with the online exchanges of your choice, you need to create an account first.

How To Mine Avalanche (Avax)

Generally, Avalanche (Avax) is a proof of stake blockchain. Therefore, we may argue that you cannot mine Avalanche (Avax), unlike other cryptocurrencies like Ethereum. Instead of mining, you may stake Avax coins via delegating or validating. Staking involves a user participating in an open network.

Should I Make An Avalanche Investment

According to many investment agencies, there are confident, optimistic predictions about Avalanche (Avax). However, cryptocurrencies have proved to be very volatile assets. Therefore, cryptocurrencies are riskier than other assets that you may invest. As a result, before investing in Avalanche (Avax), you should conduct thorough research on the company. Furthermore, you should invest what you can afford to lose. However, due to the positivity associated with Avax’s worth in the future, we recommend you invest in Avax.