Market analysis and crypto commentary show Coin Bureau says that one Ethereum competitor is poised to break into the top five by market capitalization. 

Speaking in a recent YouTube video, Coin Bureau’s host “Guy” said that $AVAX, the native token of smart contracts platform Avalanche has a chance to compete with $ETH and become a top 5 cryptoasset by market cap. 

Below is a brief description of Avalanche from its developer documentation:

“Avalanche is an open-source platform for launching decentralized applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Avalanche is the first decentralized smart contracts platform built for the scale of global finance, with near-instant transaction finality. Ethereum developers can quickly build on Avalanche as Solidity works out-of-the-box.

“A key difference between Avalanche and other decentralized networks is the consensus protocol. Over time, people have come to a false understanding that blockchains have to be slow and not scalable. The Avalanche protocol employs a novel approach to consensus to achieve its strong safety guarantees, quick finality, and high-throughput without compromising decentralization.

“AVAX is the native token of Avalanche. It’s a hard-capped, scarce asset that is used to pay for fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche. 1 nAVAX is equal to 0.000000001 AVAX.“

Avalanche is being developed by Ava Labs, a blockchain startup founded in Brooklyn, New York in 2018 by Professor Emin Gün Sirer (CEO), who does computer science research at Cornell University, Kevin Sekniqi (COO), and Ted Yin (Chief Protocol Architect).

As reported by The Daily Hodl, here are some highlights from Guy’s comments about Avalanche and $AVAX:

“It’s possible if not likely that Avalanche could crack the top five, especially since some of the cryptocurrencies in its way are of a lesser caliber, to put it mildly…

“Avalanche] remains in a clear uptrend despite the massive crypto market dip we’ve seen over the last few months. This is for one simple reason, and that’s demand...

“According to DappRadar, Avalanche’s C-chain has around half a million monthly active users which is not too shabby at all. The number of daily transactions on the C-chain has also been on a relentless rise...

“Besides the C-chain’s EVM (Ethereum Virtual Machine) support, Avalanche’s amazing adoption is likely because [of] Binance and Coinbase support withdrawals and deposits directly from and to the C-chain. This makes Avalanche very accessible to the average crypto holder...

“Right now, AVAX seems to be focused on DeFi (decentralized finance), and that’s all well and good, but that’s a very crowded neighborhood… That said, the trends are in Avalanche’s favor and if it continues the way it has, it could become big enough to challenge Ethereum.“

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.

Image Credit

Featured Image by “_anaposa_” via Pixabay