The market for cryptocurrencies is characterized both because of its variety of options and because of the variation in prices that the different assets, with some losing their price overnight while others can go up several times in value in just a couple of hours.
And one of the most striking in recent times is Avalanche (AVAX), a crypto that stands out not only for its significant rise in value (increased by 34% in the last week) but also stands out for being a new alternative to Ethereum as smart contract development software.
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THE INVESTMENT POTENTIAL OF AVALANCHE
It happens that there are only three cryptocurrencies with a higher market capitalization than AVAX that focus on the realization of this type of “smart contracts“-which are the already mentioned Ethereum (ETH) and altcoins Solana (SOL) and Cardano (THERE IS)-.
And analyzing the market capitalization of each of these options, with ETH having a total of US $ 510,000 million while SOL has US $ 67,000 million and ARA has US $ 59,000 million, it can be estimated that currently AVAX has a fairly high capitalization for its development., so it should increase in value in the medium term.
This is because only one 31% of the cryptocurrencies that will be available for the AVAX system, while its market capitalization is already in the u $ s 28,000 million. This is the main parameter that is taken when comparing it with the other alternatives as a future investment.
THE TECHNOLOGICAL ADVANTAGE OF AVALANCHE
Another important differential of Avalanche, and that allows it to be a more striking competition in the future against Ethereum, is the fact that it is compatible with the Ethereum Virtual Machine (EVM). This allows the Avalanche Blockchain to host applications developed on Ethereum, but with more advantages.
It is because of this that venture capital funds led by Polychain y Three Arrows Capital decided to fund the project recently, while the funding round, In which R / Crypto Fund, Dragonfly, CMS Holdings, Collab + Currency, Lvna Capital and several angel investors from the industry also participated., will enable the Avalanche Foundation to accelerate the growth of DeFi and support projects that run on your blockchain.
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Regarding the advantages mentioned over ETH, the first is that the AVAX blockchain has the ability to perform 4,500 transactions per second, vastly outperforming its Ethereum (which only allows 14). Likewise, transactions made on the Avalanche blockchain take less than a second to confirm, while on Ethereum the delay time is 14 seconds.
Secondly, This cryptoactive is more advantageous due to its low cost, since the creation of smart contracts costs only a tenth of what it is worth to create it on the Ethereum network.
Finally, it also allows interoperability between different blockchains, something that according to the developers of Avalanche will allow connecting several blockchains to each other in the future. In other words, Avalanche enables easy asset transfers between the Ethereum blockchain and the Avalanche blockchain.