2021 was a very good year for crypto in general, especially for the growth of new alternative blockchains from Ethereum such as Avalanche.
Avalanche (AVAX), the eleventh largest cryptocurrency by market capitalization, had a strong year with an excellent bullish performance of + 3,100%, outperforming almost all top 10 cryptocurrencies such as Bitcoin (BTC) + 65%, Ethereum (ETH) + 413%, Binance Coin (BNB) + 1.295%, Cardano (ADA) + 646% and Polkadot (DOT) + 199%, according to CoinMarketCap.
Avalanche (AVAX) started the year with a market cap of $ 281 million valued at $ 3.66 per coin and ended on the last day of the year with a market cap of $ 26.1 billion valued at $ 107.42 per coin at the time of writing. after hitting an all-time high of $ 134.53 and a market cap of $ 30.11 billion in late November.
What drove the Avalanche Prize to hit ATH in 2021?
The tremendous momentum of AVAX was in the last quarter of the year, on November 16, Deloitte announced a partnership with Ava Labs, the team behind Avalanche, by creating a platform called Close As You Go (CAYG) on the Avalanche blockchain launched.
This platform will help state and local governments identify federal funding in the event of natural disasters and public health emergencies. A week after this huge partnership, AVAX hit its all-time high.
“Our new Close As You Go platform can play a critical role in helping these executives summarize and validate the required documentation to demonstrate eligibility and reduce the risk of adverse audit results,” said Alex Haseley, Deloitte & Touche LLP and Deloitte’s Portfolio Leader in Crisis Management for Governments and Public Services.
After hitting an all-time high of $ 134.53 in late November, it began to fall, establishing support at around $ 80 until a report, led by Alkesh Shah of Bank of America, was released in mid-December that concluded that Avalanche has tremendous scalability with faster settlements and lower transaction fees than other alternative blockchains. A few days later the stablecoin USDC was integrated into the Avalanche blockchain, and a week later the AVAX price rose + 52%, breaking the descending channel as described below:
The story goes on
December 2021 AVAX / USD chart. Source: FXEMPIRE
What’s next for Avalanche (AVAX) in 2022?
According to the WalletInvestor prediction algorithm model, they predict a rising and rising year in AVAX price, which ends the year at around $ 275 and has fewer returns than 2021, as you can see in the image below:
AVAX / USD WalletInvestor forecast for 2022. Source: WalletInvestor
Other predictions for the next year are even more bullish, Gov Capital and CoinPriceForecast expect AVAX to hit $ 309 and $ 305, respectively, by December 2022.
It appears that AVAX will continue to grow over the next year and the bullish sentiment will continue. As DeFi and NFTs grow in popularity, new users entering the crypto industry can see Avalanche’s blockchain as an Ethereum alternative. Let’s hope other big names like Deloitte adopt the Avalanche blockchain in 2022 as the global adoption of crypto continues.
This article was originally published on FX Empire
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