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The cryptocurrency is a competitor to the famous Ethereum blockchain as it is believed to have greater scalability than ETH. Keep reading to find out about AVAX price actions.

Do not forget about cryptocurrencies if you are looking forward to investing your money in 2022. There are so many cryptos to choose from, Avalanche being one of them.

It is a popular cryptocurrency with some promising trends, if not satisfactory results. According to the Avalanche price prediction, the coin will take an upward trend as it will continue to grow this year.

As an investor, it is wise to find out the potential of the AVAX cryptocurrency to know if it is worth investing in it. This is why this article is here to guide you on understanding what Avalanche is, how it works, including its price prediction for 2022 and the coming years.

What is Avalanche and What Does it Entail?

Avalanche can be described as a smart-contract-capable blockchain that is eco-friendly, offers low cost and more transactions. The blockchain does not sacrifice security or decentralization, making it a decentralized cryptocurrency.

AVAX was launched in 2020 by a team known as Ava Labs. It managed to ascend within a short period and now sits at the top ten list of the most famous cryptocurrencies. Also, Avalanche TVL skyrocketed and is currently worth $3 billion.

How Does Avalanche Cryptocurrency Works?

Avalanche cryptocurrency is innovated around three major blockchains, and each one of them is designed to perform specific tasks in the ecosystem. Instead of assigning all the tasks to one blockchain, they are distributed among the three blockchains to keep the platform firm.

This also helps the ecosystem to achieve its specified goal. Here are the 3 blockchains built around the Avalanche ecosystem;

Exchange Chain (X-Chain)

The X-Chain blockchain is responsible for all the transactions in the Avalanche platform. It is also responsible for creating all the ecosystem’s assets, and AVAX is the native token in use in the network. All transactions that happen in the Avalanche platform are paid through the coin.

Contract Chain (C-Chain)

Contract Chain is the next blockchain, and it is solely based on smart contracts. The feature allows developers and users to create decentralized apps on the Avalanche platform. It also allows them to leverage scalability benefits and security.

The best thing about the C-chain is that it allows Avalanche smart contract to be compatible with the Ethereum Virtual Machine. This is a big deal because it will enable everyone to deploy ETH smart contracts on the Avalanche platform.

Platform Chain (P-Chain)

The P-chain blockchain allows you to build an L1 or L2 blockchain. With it, you can even form a group of them. The blockchain in the Avalanche ecosystem is known as subnets, and the P-chain is the default one. It helps to manage the overall landscape of the Avalanche platform.

How Did Avalanche Cryptocurrency Perform in 2021?

2021 was an excellent year for most cryptos, including the AVAX-token, an alternative to the Ethereum blockchain. Avalanche is the 11th biggest crypto in the market capitalization and rose to a significant bullish performance of over 3,100%. Surprisingly it outperformed all the first 10 cryptocurrencies, such as the Bitcoin, Binance coin, Ethereum, etc.

When the year began, Avalanche’s market cap was at $281 million, and the value of each coin was $3.66. By the time the year was ending, its market cap was at $26.1 billion and attained a value of $107.42 for each coin. This was after the token had reached its all-time highest price of $134.3, with a market cap of $30.11 billion.

The Reason behind Avalanche’s Price Increase

Avalanches’ tremendous momentum was experienced towards the end of 2021. The increase in its prices was realized after Deloitte partnered with the Ava Labs team and launched a platform known as the “Close As You Go (CAYG).”

The CAYG was developed on the Avalanche blockchain to aid local and state governments to exhibit public health emergencies and federal funding in case of natural disasters. After a week of announcing the huge partnership, Avalanche’s price snowballed to its all-time high price.

Avalanche Crypto Price Prediction for 2022

Currently, Avalanche has a circulating supply of 244,302,612 AVAX, with a trading volume of $1,011,070,534. Its all-time lowest price was $2.79, and the highest was $134.3. This is such a vast improvement, considering it has not been there in the market for a long time, unlike other cryptocurrencies.

The good news is that Avalanche is not likely to stagnate any time soon. According to the Avalanche price forecast, AVAX price will continue to increase in value to approximately $275 by the end of the year. Other sources show a more bullish trend and expect Avalanche prices to skyrocket to around $305 to $309 by December 2022.

Many other sources also believe that the token will keep rising for the next 5 to 10 years to come. Here is a simple Coinpriceforecast.com Avalanche prediction from 2022 to 2030;

How to Purchase the Avalanche Token

To purchase AVAX coins successfully, you need to perform a few crucial steps to complete the buying process. They include;

Step 1: Find an Exchange Platform

There are several exchange platforms you can open to get your Avalanche cryptos. They include; Uphold, Binance, BitPanda, Gate.io, and WazirX. You can also use the Coinbase app to get your coins quickly and conveniently.

You are required to open an account with your preferred exchange account by providing your details like the name, address, date of birth, etc. Ensure all the information given is 100% correct.

Step 2: Choose a Payment Method

You need to link your account with your preferred payment method. You can use a debit card, bank account, or any reliable wire transfer.

Step 3: Perform Your Trade

In step three, you may choose to purchase Avalanche tokens directly if the platform allows it. But if it does not, you will have to buy Bitcoin or Ethereum token to trade it with the Avalanche token later. Many exchange platforms like Binance have listed AVAX. Therefore there is no need for all that process.

Step 4: Select Avalanche and Purchase It

Use the search bar to find Avalanche token from the list of assets. When you find it, click on it to open the purchase page. From there, you may proceed by entering the amount you want. You can use a crypto converter to know the exact amount of coins you have purchased.

Step 5: Purchase and Hold the Coins

After you are through with the purchasing process, you should receive a confirmation message notifying you that you have successfully purchased the coins. From there, find a way to store your coins safely until you are ready to sell or trade them.

Should I Invest In the Avalanche Cryptocurrency

Based on the above Avalanche prediction, the coin will keep rising for many years to come. Therefore, it would be wise to invest in the token if you want massive long-term gains. But do not forget these are just predictions. They are not accurate data, which means that you must always be keen on the crypto news to know how the token is performing in the market.

The Best Way Forward

If you are an investor, the above guide should help you know if it is worth investing in Avalanche token or not. Avalanche price predictions may not give you an accurate result, but they will guide you when making decisions. Also, do not forget to follow Interactivecrypto to know other cryptocurrencies to pay attention to.

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