This year has been a tough sail for Avalanche since May 2022, when the Terra/Luna implosion caused a cascade of bankruptcies, layoffs, and liquidations. Subsequently, the chain of unfortunate market and geopolitical events like the Russian invasion of Ukraine, U.S. inflation, and 3AC and Celsius insolvency, has also contributed to the downward pressure on the price of AVAX.
With the recent massive downfall of the crypto market caused by FTX contagion, is it possible for Avalanche to reclaim its all-time high in 2023? Continue with the article to learn about Avalanche price analysis and prediction by Coinpaper.
Read also: What are Ethereum killers? Five protocols that can potentially dethrone Ethereum
What is Avalanche?
Avalanche is a Layer 1 proof-of-stake blockchain that supports smart contracts and aims to solve the blockchain trilemma of scalability, security and decentralization. The network is composed of three different blockchains, the Exchange Chain (X-Chain), the Contract Chain (C-Chain), and the Platform Chain (P-Chain), each of which is tasked with different functions within the ecosystem. X is the main execution layer for transactions on Avalanche, C is a smart contracts layer, and P is responsible for validators coordination and management of subnets. AVAX, the native token of the blockchain, is used to distribute staking rewards, participate in governance and pay for fees on the network.
Avalanche (AVAX) price
Currently, Avalanche Price is USD. AVAX has a circulating supply of coins and a total supply of . If you are looking to buy or sell Avalanche, Binance is currently the most active exchange.
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Avalanche price prediction 2023
The current market sentiment is full of fear, uncertainty, and doubt (commonly known by the acronym FUD), as fears of FTX contagion mount. At the moment, it’s difficult to assess exactly how much damage has FTX collapse has done to the crypto industry, since some affected crypto companies may be already secretly insolvent due to highly leveraged positions, as we have seen in the aftermath of Terra's implosion.
According to our estimates, it will take months for the full scale of FTX bankruptcy to become clear, so the turning point for the crypto market won’t come before late Q1 to early Q2 2023, although for now, it seems that the industry has absorbed most of the damage.
Another market factor that should be taken into consideration is how successful will be the U.S. Federal Reserve’s efforts to curb inflation. For now, there is reason to believe that Fed is making some progress in its attempts to cool the overheating economy — on November 30, Federal Reserve Chair Jerome Powell announced it’s time to slow the pace of coming rate hikes, which immediately triggered a positive reaction from both crypto and equity markets.
Given the above information, one can easily guess that there will be a considerable divergence between bullish and bearish Avalanche 2023 price predictions due to multiple unknown factors. For this reason, we estimate that the bullish scenario will see Avalanche price at $28.55 to $36.54. On the flip side, a fading interest in the new meme coin may push the price of Avalanche to $17.36-$11.65 lows.
Avalanche price prediction 2024
In 2024, the global macroeconomic backdrop is likely to be more favorable to the crypto market, adding value to Avalanche (AVAX) and other cryptos. However, the possibility of black swan events similar to the collapse of FTX cannot be completely ignored.
Keeping this in mind, we foresee the price of Avalanche to climb as high as $48.63, with the more distant prospect of reaching $57.23 in 2024. The bearish scenario is likely to see Avalanche (AVAX) trading between $39.16 and $32.28 in 2024.
Avalanche price prediction 2025
Since it’s practically impossible to foresee what market factors will influence cryptocurrency prices in 2025, this part of our Avalanche (AVAX) price analysis and prediction is based on pure speculation and observation of Avalanche historical price movements.
Our Avalanche 2025 price forecast expects AVAX to rally towards $73.27 and reach $98.39 by the end of the year. The bearish scenario would see Avalanche at $56.37 to $49.26.
Avalanche (AVAX) price prediction 2026
Looking ahead four years, to 2026, Coinpaper's price prediction for Avalanche is neutral. In 2026, we expect Avalanche to reach at least $121.26 before climbing higher to $145.36. In case of a bearish scenario, Avalanche may fall to $92.35.
Is Avalanche (AVAX) a good investment?
With continued developments taking place within the Avalanche ecosystem, its solid user base, strong community of developers, and established market position, AVAX can be a nice addition to your “top alts” portfolio. However, keep in mind that investing in any cryptocurrency carries a high degree of risk, so make sure to conduct your own due diligence before investing in AVAX.
Bottom line
Are you ready to invest in Avalanche? Very few if any analysts forecast its value going down to zero, although you can’t be sure these days, so make sure you always do your own research before making investment decisions. And keep in mind that cryptocurrency prices can be extremely volatile, so trading crypto always involves a high degree of risk.
You can buy AVAX from many crypto exchanges, including Binance
Disclaimer: Coinpaper does not recommend that any cryptocurrency should be bought, sold, or held by you. Always conduct your own research and consult your financial advisor before investing in any digital asset.
FAQs
Who created Avalanche?
The article that laid out the basis for the Avalanche protocol was published in May 2018 by an anonymous group of devs under the alias Team Rocket. Shortly after, Emin Gün Sirer founded AVA Labs with the goal of creating and developing the Avalanche blockchain.
What was the all-time high for Avalanche (AVAX) ?
The all-time high price of Avalanche is $ on 2021-11-21
