avalanche (CRYPTO: AVAX) has had an incredible 2021 and has emerged from the dark to become the eleventh largest cryptocurrency by market capitalization. It outperformed more recently established blockchains like Litecoin (CRYPTO: LTC) and Terra (CRYPTO: LUNA) as well as popular meme coins like Shiba Inu (CRYPTO: SHIB) in total market capitalization. It just climbed past the infamous Dogecoin (CRYPTO: DOGE) in market cap, and it didn’t need any help from Elon Musk.
In the future, Avalanche could have more blue skies in front of them when the dynamics of the blockchain builds up. Here are three reasons Avalanche might just be getting started.
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Other real projects are being added to the Avalanche blockchain
The advent of decentralized applications (dApps) on the Ethereum blockchain was instrumental in making Ethereum the $ 500 billion asset it is today. Developers and artists migrated to Ethereum. Avalanche is in the process of developing its own thriving ecosystem. There are a growing number of NFTs springing up on Avalanche. For example, the NHL’s New York Islanders are partnering with the new NFT platform Orange Comet, which uses the Avalanche blockchain to publish a range of NFTs. A game to earn the game called Crabada, which launched on the Avalanche blockchain this November. To get an idea of how big the game is for earning games in crypto, take a look at Axie Infinity (CRYPTO: AXS) and its AXS token, which has reached a market cap of $ 8.5 billion.
The Big Four accounting and consulting firm Deloitte also recently selected Avalanche for a project it is working on. This initiative aims to help local governments streamline receipt of FEMA funding in the event of a natural disaster. Deloitte says it selected Avalanche for this company because of its speed, transparency and climate-friendly features.
Impressive transaction speed
The Avalanche network can handle an impressive 4,500 transactions per second, compared to just 15-30 transactions per second for ether (CRYPTO: ETH) or 250 for Cardano (CRYPTO: ADA).This throughput even surpasses that of traditional financial networks like Visa, which process around 24,000 transactions per second. Only Solana outperforms Avalanche in terms of throughput with 50,000-65,000 transactions per second. In addition, Avalanche executes these transactions for much less than Ethereum. Transactions on the Avalanche blockchain cost around 0.001 AVAX, or around 0.12 USD at the current AVAX price. Some Ethereum users have been frustrated with the high “gas fees” on the Ethereum network, which can often be as high as $ 40 or more.
looking ahead
With a fast transaction speed at a reasonable price, a growing number of interesting projects being built on its blockchain, and takeover by companies like Deloitte for large real-world projects, Avalanche has reached and will remain critical mass.
This article represents the opinion of the author who may disagree with the “official” referral position of a premium advisory service from the Motley Fool. We are colorful! Questioning an investment thesis – even one of our own – helps us all reflect critically about investing and make decisions that will help us get smarter, happier, and richer.
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