After an initial flight on September 21, 2020, Avalanche has been getting a lot of attention from the DeFi community and the people who watch. The price of AVAX tokens started to rise right away. It has only begun to cool down a little since the initial popularity of the project started. It hit its all-time high in February at around $59.40. At the moment, it’s about $36. The value hadn’t changed much since December when it was just $3.
As one of the so-called Ethereum killers, the platform has seen the platform as a real competitor to Ethereum. The platform stands by its claim that it is an excellent complement to Ethereum as it moves to Ethereum 2.0, which has a lot of risks. The cryptocurrency is indeed beating out many other digital assets, but not everyone knows what Avalanche is about.
What is Avalanche
Avalanche is an all-in-one platform for releasing decentralized money, properties, trading, and other things (DeFi). They want to make smart contracts the standard way to launch, trade, and decentralize any kind of asset. They want to make this happen through smart contracts and another cutting-edge tech.
Avalanche, they claim, is the world’s first smart contract network capable of completing a conventional transaction in less than a second. Ava Labs and its development team say that. In September 2020, AVAX launched the mainnet of its platform.
The AVAX Token
As a token on the Avalanche network, it’s called AVAX, and that’s what people call it. It is the leading accounting entity for the Network, and it acts as a peer-to-peer payment currency and a way to protect the Network, set up new subnetworks, pay transaction fees, set up and exchange properties, rule the protocol, and encourage validators.
Since there were only 720 million tokens, AVAX has been made because there were almost none. The platform released 360 million from its main grid’s genesis block. The remaining 360 million tokens are created using the Avalanche Whitepaper’s calculation. The objective for the first year is to stake 7-13 percent of new AVAX tokens. This lets people who own tokens control how many AVAX is made, which can make or break the value of their tokens.
In July 2020, Avalanche ran an ICO that raised $42,000,000 and sold 21,000,000 tokens for $0.50 each. There was a significant drop in the value of AVAX tokens on November 30, 2020, when the main net went live. November 4, 2020, the price was not much higher than the low price of $3,00 at all. It’s still a very good deal for people who put money in during the ICO.
If a network grows and many people use it to buy and sell things, that means the economy is good and stable. The Network also wants low fees and minting to keep prices from rising because of transaction fees.
What’s the Hype About
This compares to seven transactions per second for bitcoin and 14 for Ethereum. Ava Labs says the platform can handle 4,500 transactions per second, which is more than seven for bitcoin and 14 for ethereum. A transaction can be done in less than three seconds if you already have it. Previously, some large decentralized applications were not allowed. This change may be suitable for them.
There is a big problem with blockchain-based systems today. Avalanche is designed to solve that problem and be very scalable. Interoperability is also a big problem. Blockchains can talk to each other inside and outside a subnetwork, and cross-chain value transfers can be made. They will work well together. It’s also very open too.
Without giving up decentralization or safety, Avalanche meets a second goal, high performance, and productivity, without giving up these two things. These things make it a great DeFi platform and a great payment platform. People who want to buy tokens made by any platform will like them because they can store a lot of validators and use a very flexible interoperability platform between chains.
The limited supply of AVAX tokens keeps the price high and adds value to the token. Avalanche doesn’t have to deal with the constant dilution caused by inflation as other staking platforms do. Overall, despite Avalanche’s denials, it is the closest thing to declaring war on Ethereum. We will know for sure in time.
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