Avalanche emerged as one of the most profitable crypto in 2021.
Avalanche blockchain is a decentralised proof-of-stake (PoS) platform designed to run using smart contracts at the scale of global finance, with near-instant transaction completion.There are more than 364 projects building on the Avalanche crypto platform, including DeFi projects.
Avalanche is in the process of developing a flourishing ecosystem of its own. Deloitte announced that it's working with Ava Labs to develop a disaster recovery platform built on the Avalanche blockchain. This system will help state and local governments prove their eligibility to receive federal funding for emergencies. It is not too late to make money on Avalanche cryptocurrency because Avalanche is fast, low fees compare to other cryptocurrency and supported new technology in crypto world which is very important nowadays in crypto world.
Avalanche has the potential to be one of the top smart contract platforms. Avalanche is making significant moves to make itself relevant in this space, Avalanche is likely to be a solid long-term bet in the smart-contracts space. Making money from Avalanche is depend on many factors such as market condition and at what rate you buy it. Overall Avalanche is a promising cryptocurrency which has the potential to bring profit.
Key Points
1.Avalanche has already made early buyers a lot of money, with a 34X return over the last 12 months.
2.The key to this success is Avalanche's triple-blockchain architecture.
3.It's quite possible that Avalanche could keep up its winning ways with increased adoption of its platform.
What a difference a year makes.
Coming into 2022, Avalanche was a relatively little-known cryptocurrency with a market cap of less than $300 million. That was actually an impressive achievement considering that Avalanche had been launched only a few months earlier.
Fast forward to today. Avalanche now boasts a market cap of more than $27 billion, moving past sizzling-hot Shiba Inu. That's enough to rank its native AVAX token as the No. 13 biggest cryptocurrency in the world, according to CoinMarketCap. But could buying this hot cryptocurrency make you a fortune now?
Behind Avalanche's success
There are thousands of cryptocurrencies. Why did Avalanche break out while many haven't? The best answer is its blockchain architecture.
Like Ethereum, Avalanche's platform supports smart contracts. But it's the differences with Ethereum that have made Avalanche increasingly popular. In particular, Avalanche is much faster and has much lower fees. These advantages are made possible by Avalanche's three interoperable blockchains:
Exchange Chain (X-Chain): supports the creation and trading of the native AVAX tokens.
Contract Chain (C-Chain): facilitates the creation of decentralized apps based on smart contracts.
Platform Chain (P-Chain): coordinates validators that verify transactions and supports the creation of dynamic sets of these validators called subnets.
Thanks to this triple-blockchain design, Avalanche can process more than 4,500 transactions per second and still be highly scalable. Its "time to finality" (when a transaction has been irreversibly finalized as an addition to the blockchain) is under two seconds. By comparison, Ethereum can process in the ballpark of 14 transactions per second with a transactional finality of six minutes.
These advantages are resulting in the increased adoption of Avalanche. Deloitte announced last month that it's working with Ava Labs to develop a disaster recovery platform built on the Avalanche blockchain. This system will help state and local governments prove their eligibility to receive federal funding for emergencies.
Avalanche already has more than 150 projects in its ecosystem. These projects include decentralized finance (DeFi) wallets and non-fungible token (NFT) marketplaces.
A fortune in your future?
Let's return to the key question. Can buying Avalanche make you a fortune? I think the answer is yes.
Allow me to qualify that answer, though. I don't expect that Avalanche will deliver a 34X gain over the next year as it has over the previous 12 months. If it did that, it would be bigger than every other cryptocurrency on the market right now other than Bitcoin. That's possible but not probable.
It's also important to note that Avalanche's success going forward is joined at the hip with broader acceptance of cryptocurrencies in general. While I fully expect continued momentum for cryptocurrencies, there's always a possibility that circumstances could change.
My view, however, is that Avalanche could very well generate big returns going forward. I can definitely see how Deloitte's adoption of the blockchain could drive increased interest. Rising interest would almost certainly lead to a rising price for the AVAX token.