Cardano, Solana and Avalanche are known as the strongest Ethereum competitors. These 3 altcoin projects continue their downtrends, except for short-term jumps. A popular crypto analyst interpreted AVAX’s resilience as a bullish sign despite the current sell-off. We’ve compiled Coin Bureau’s current AVAX analysis.
AVAX proves its resilience as altcoin market crashes
Million subscriber Youtube channel Coin Bureau updates Avalanche forecasts. The 15th largest cryptocurrency by market cap has been on the decline for some time now. Alongside the new Youtube, Coin Bureau analyst “Guy” discusses why Avalanche could be the best smart contract platform. Guy noted that alongside the decline in the crypto market, AVAX has a significant amount of selling pressure. It also highlights the shifts in the token economy:
In addition to these depressing macro factors, approximately 25 million additional AVAX have been in circulation since the beginning of the year, in keeping with Avalanche’s mechanism.
Despite the selling pressure, Guy highlights how Avalanche has managed to make headlines about past investments. He says this interest is a result of “consistent demand” from individual and institutional investors. At the same time, he describes it as “surprising” that AVAX’s price has held up so well in the face of its selling forces.
Guy also noted that Avalanche’s number of unique wallets on the C chain has increased by 50% in the last four months, with the daily transaction count showing a steep upward trend. Additionally, while the analyst is positive about the current state of AVAX, he warns that the altcoin could suffer during the bear market.
Will AVAX drop to $10?
In part of the broadcast, the analyst said that it is “quite possible” for Avalanche to drop as low as $10. However, he also predicted that it would regain a strong support level around $40.
What is AVAX and how does it differentiate from other altcoin projects?
Avalanche is an open source platform launching enterprise blockchain deployments in a highly scalable ecosystem. Avalanche provides smart contracts for global finance scale with near-instant transaction certainty. Solidity is ready to use. This is why Ethereum developers are increasingly showing interest in Avalanche.
AVAX is Avalanche’s native cryptocurrency. It is used to pay fees, secure the platform through staking. Additionally, it is a scarce token used to provide basic computing across multiple subnets created on Avalanche. 1 nAVAX is equal to 0.000000001 AVAX.
