Recently, the host of popular crypto analytics and market commentary show Coin Bureau shared his latest thoughts on $AVAX, the native token of smart contracts platform Avalanche.
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).
Speaking in a recent YouTube update, Coin Bureau’s host “Guy” told followers that $AVAX is doing well despite the bear market. Guy noted that $AVAX has a significant amount of selling pressure, in addition to the overall decline in price for the crypto markets.
As reported by The Daily Hodl, Guy said,
In addition to these depressing macro factors, around 25 million additional AVAX have entered circulation since the start of the year, which is consistent with Avalanche’s aggressive vesting schedule.
Despite the selling pressure, Guy highlighted how Avalanche had managed to generate headlines over the past year concerning acquisitions and investments. He called it “amazing” that $AVAX’s price had held up so well in the face of selling forces, saying that it was a consequence of the “consistent demand” from retail and institutional investors.
Guy also noted that the number of unique wallets on Avalanche’s C-chain had increased by 50% over the last four months and that the number of daily transactions was displaying a steep upward trend.
While Guy was positive on $AVAX’s current situation, he warned that the altcoin could suffer during the bear market. He said it was “quite possible” for Avalanche to fall as low as $10, but likewise predicted it reclaiming a strong level of support around the $40 range.