The blockchain industry was introduced to a new twist in the form of smart contracts by Ethereum. Thanks to smart contracts, the need for a third party is eliminated when executing transactions on a blockchain. This gave rise to an entirely new industry, but it also gave rise to some issues when new projects were launched using different configurations and coding languages. Transaction speed is one of the most pressing issues and this is where the Avalanche (AVAX) blockchain comes in. This platform was established for solving the problems that Ethereum and other blockchains have to deal with.
This means that the Avalanche blockchain is focused on low costs, transaction speed and eco-friendliness. It is similar to Ethereum, as this smart-blockchain platform is focused on scalability, security and speed. The Ava Labs team created the blockchain and launched it back in 2020. It is recognized as one of the biggest competitors of Ethereum and is one of the fastest growing cryptocurrencies. It is important to note that Avalanche actually comprises of three blockchains; Exchange Chain (X-Chain), Contract Chain (C-Chain) and Platform Chain (P-Chain). The first one specializes in token exchanges, which ensures faster transactions and low fees, but no network clogging.
The second one is used for creating smart contracts and executing them for different kinds of transactions. The last one enables developers to create their own blockchains that are known as subnets. With the use of three separate blockchains, Avalanche allows more transactions to be processed simultaneously and this can reduce the fees. Even though the Avalanche (AVAX) crypto coin has only been around for a year, it has caused a lot of ripples in the market for attracting the attention of investors, the media blockchain industry as well as other crypto enthusiasts. Taking its price history into account, it has had quite a ride.
As a matter of fact, the coin is on its way to blockchain industry become one of the most valuable cryptocurrencies in the market. The coin had started trading at the end of September 2020 and its earliest price was around $4.1. However, in the first couple of months, the coin’s price has gotten as low as $2.9. There hadn’t been much activity in the coin from September 2020 to January 2021 and its price remained below the $4 mark. However, the start of 2021 turned out to be a good one for AVAX because it rose quickly and had crossed $13 by mid-January.
One of the biggest jumps in Avalanche’s price was seen between February 1st and February 10th, 2021, when the price of the coin increased from $13.23 to a whopping $55.3. This marked a gain of 318% within 10 days. This was when all major crypto trading software also reported an increase in trading activity of the Avalanche coin. Unfortunately, the end of February saw the coin drop and its value reached $23 per coin. Even though there was a market-wide bull run and coins like Bitcoin, Ethereum and Dogecoin reached staggering milestones, but AVAX did not appear to take advantage of it.
Until mid-May, the coin was trading between $20 and $40, but it also suffered from the bear market that followed and in late July, it was trading at just above $10. But, it rose in August and reached $55.35 before dropping to $37 in early September and then once more rising to $76 by the end of the month. On November 21st, 2021, AVAX hit its all-time high of $146.22. It dropped in mid-December to $79.3 and then rose again to $116.5. Its price has dropped once more to $106 on January 4th, 2022, but it is expected to increase to $270 by the end of 2022 and $430 by the end of 2023.
AVAX is expected to record a 10% gain in January and continued growth in February and March as well, with the price reaching $155.9 per coin. It is expected to have a linear uptrend with a couple of drops along the way.