Altcoin Daily: Avalanche (AVAX) Could Flip Solana And Even Ethereum
Altcoin Daily host and crypto market analyst, Aaron Arnold, is looking into Avalanche (AVAX) and predicts that the layer-1 smart contract platform has potential to launch a massive rally this year.
In a recent video update, Arnold shared with the 1.21 million subscribers to Altcoin Daily’s YouTube channel that Avalanche (AVAX) looks ready to challenge Solana (SOL) which has suffered from network overload issues lately.
“I think [AVAX] has the potential to flip Solana, whether it’s in the short term, mid-term, or long term.
I think it has a strong potential future.”
The analyst also believes that AVAX could flip Ethereum in terms of transaction volume.
“Obviously Ethereum is the leader for layer-1, open-source DApp (decentralized application) platforms, but… daily transactions of Ethereum and AVAX, the difference here is now just 3% or 33,000 transactions.
AVAX is looking like it’s about to flip Ethereum in transactions, which is a pretty big deal, pretty big metric.”
Arnold next highlights the variety of niches within the crypto space that Avalanche now services.
“The AVAX ecosystem’s one of the biggest in the space. Huge DeFi (decentralized finance) sector bringing over tons of people from Ethereum’s DeFi sector.
Big NFT (non-fungible token) and gaming sector. We have tooling DApps, privacy wallet…
AVAX is certainly one to watch.”
Arnold is also talking about how Avalanche is learning from Ethereum’s successful token-burning mechanism.
“[ETH burning mechanism has] worked out so well. AVAX is… doing their own version where they have their own burning mechanism as well.
Supply is reduced in AVAX as AVAX is burned, from transaction fees, creation of assets, creation of blockchains, creation of subnets.
Bull case for Avalanche is that it has a fixed-cap supply like Bitcoin. Not as decentralized as Bitcoin but its tokenomics are similar in that it’s fixed and capped, unlike Ethereum which is not capped.”
The analyst also mentions an official tweet from Avalanche last month, which announced that over 700,000 AVAX have been burned including all transaction fees.
