Bitcoin is trading around $42,000 at press time, down about 11% in a one-week timeframe. This is despite the never-ending bullish sentiments of traders who believe BTC will end the year north of $100,000. However, according to crypto analyst Steven Msoh, in the short term, investors may best be served by exploring other alternatives. The analyst thinks that this may be an exit time for Avalanche, one of the altcoin projects that excite analysts.
Why is Avalanche (AVAX) getting analysts excited?
Avalanche is a Layer 1, Proof of Stake (PoS) Blockchain network that supports smart contracts. According to analyst Steven Msoh, the altcoin project has managed to solve some of the most pressing Blockchain challenges, including having a high throughput of more than 4,500 transactions per second and full compatibility with the Ethereum Virtual Machine. cryptocoin.com As we reported, the project is based on the Byzantine fault tolerance protocol and was launched in September 2020. AVAX, the native token on the Avalanche network, is one of the cryptocurrencies that many analysts believe will rise in the near future. The analyst says that over the past two months, AVAX has confirmed these estimates, with an incredible 700 percent increase.
According to Steven Msoh, Avalanche is seeing a huge flow of capital and for layer 1 protocols, this is critical to the performance of its tokens. The analyst shares the following information:
Layer 1 networks form the basis of the Blockchain architecture, while Layer 2 overlays networks above them to improve certain aspects such as output. Consider Bitcoin and the Lightning Network, which are Layer 1 and Layer 2 respectively.
Lex Moskovski: This altcoin acts like $25 Solana
An analyst nicknamed Strong Hedge noted that the flow of capital into the Avalanche ecosystem is similar to what was seen at Solana a few months ago. Empowered by this, Solana has climbed to great heights and Strong Hedge believes it’s AVAX’s turn:
If you’ve been around long enough, the answers are in the charts. Here’s what they told me: Money goes from one ecosystem to another. SOL was the first, ATOM and AVAX are currently taking advantage. BTC does nothing but hack, but look how the majority of altcoins are doing.
Lex Moskovski, chief investment officer of Moskovski Capital, is of the same opinion about AVAX. Lex Moskovski recently shared his claims on Twitter:
The AVAX acts like the $25 Solana and offers impressive durability and pre-orders.
Steven Msoh claims that Solana, currently 7th in the top ten with a market cap of $38 billion, will continue to shoot over $210, a new record.
“Altcoin project shows impressive growth”
According to analyst Steven Msoh, its continued development aimed at making it a better alternative to many of today’s Tier 1 networks is the reason why Avalanche is even more bullish. To kickstart these developments, the Avalanche Foundation has raised $230 million in a private sale of AVAX tokens to venture capital firms led by Polychain Capital and Three Arrows Capital. The sale took place in June, but the foundation only announced it a week ago.
Steven Msoh states that Avalanche is the fastest smart contracts platform as measured by time to commit, and in addition, Ethereum Virtual Machine compatibility means it’s pretty easy to migrate applications from Avalanche to Ethereum and vice versa. According to the analyst, these developments, robust ecosystem and large numbers of users are already attracting major projects deploying applications on the network, with the latest being the Kyber Network, which launched its automated market maker on Avalanche last week. Kyber has already launched the so-called dynamic market maker on other major blockchains, including Ethereum, Polygon, and Binance Smart Chain. When asked why Avalanche opened up, Loi Luu, CEO of Kyber Network, said:
We go after users, so at the end of the day, whatever ecosystem has a growing community, we’ll be there.
Steven Msoh says it’s not just big projects that come to Avalanche, but casual users and developers are increasingly choosing the network as well. One of the best ways for developers to assess interest in a project is through GitHub commits. Avalanche has seen over 12,500 commits since launch. According to the analyst, this puts Avalanche in the top spot alongside other major projects like IOTA and Cardano.
The crypto analyst says that for users, the continued increase in the total value locked is one of the best indicators, and the project is showing impressive growth. According to data from DefiLlama, Avalanche has $2.73 billion in TVL and Benqi is the most dominant platform in the ecosystem with $1.14 billion. Polygon is $3.93 billion, and Phantom is $1.12 billion.
What’s in the pipeline of the altcoin project?
Avalanche has a lot to look forward to, according to Patrick Sutton, Ava Labs communications director. Ava Labs contributes to the development of Avalanche just as the Ethereum Foundation does for Ethereum. In a recent interview, Patrick Sutton explained that “the tools that support users in Avalanche have undergone a major overhaul to provide a better user experience for the entire spectrum of user complexity and information.” Patrick Sutton had this to say about what happened in the pipeline:
Performance improvements to the core platform, more apps, a better Avalanche Wallet, more cross-chain connectivity with Avalanche Bridge, all-new asset classes like Initial Litigation Offerings, enhanced subnet capability, and consistently.
At press time, AVAX has gained 21.60% over the past seven days to trade at just over $63. Analysts estimate that it is only a matter of time before the token exceeds $100. According to analyst Steven Msoh, the altcoin has the best risk-to-return ratio of all major cryptocurrencies in the past 30 days, surpassing Luna, Solana and ATOM.
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