Avalanche Review: Beginner’s Guide to AVAX

What is Price Volume in 24h Price 7d crypto? It’s a revolutionary blockchain platform standing out in a crowded space due to its speed, scalability, and flexibility. Unlike many other blockchains, the Avalanche blockchain can handle thousands of transactions per second, making it super fast.

It’s also compatible with Ethereum, so developers can easily move their decentralized apps (dApps) over to Avalanche. Plus, its customizable subnets give users the ability to create tailored blockchain networks.

In this Avalanche cryptocurrency review, we’ll dive into what makes Avalanche crypto a unique and promising player in the world of blockchain.

Avalanche Review: A Summary

Price Volume in 24h Price 7d shows strong potential with its fast transactions, scalability, and growing DeFi ecosystem. Based on both fundamentals and technical analysis, its limited token supply and market recovery suggest promising growth.

However, competition from established blockchains and market volatility are important factors before deciding if AVAX is a good buy.

What is Avalanche AVAX?

Avalanche is an open-source platform made for building decentralized applications (dApps) and custom blockchain networks. It stands out by delivering high speed, low latency, and scalability—all without compromising decentralization.

Sounds impressive, right? Well, it’s all thanks to its unique consensus mechanism and multi-chain design, which make it a game-changer in the blockchain space. According to a research paper on arXiv, Avalanche achieves high throughput and low latency by substituting proof of work with a random sampling mechanism.

This differs from from traditional proof-of-work and proof-of-stake systems.

History of Avalanche Crypto

The story of Avalanche started back in May 2018, when a group of developers, going by the mysterious name “Team Rocket,” introduced the Avalanche protocol.

A year later, Turkish-American computer scientist Emin Gün Sirer founded Ava Labs to bring the Avalanche platform to life. Fast forward to September 2020, and the Avalanche mainnet officially launched, introducing its native token, AVAX.

Since then, Avalanche has taken off, becoming a popular choice for decentralized finance (DeFi) applications and other blockchain-powered solutions. According to Cornell University, Avalanche secured $42 million in funding during its initial token sale, emphasizing its market potential.

Avalanche’s DeFi Ecosystem

Avalanche’s DeFi ecosystem is built on three specialized blockchains, each with its own job:

• X-Chain (Exchange Chain): This is where assets, including AVAX, are created and exchanged.
• C-Chain (Contract Chain): It’s like Avalanche’s smart contract hub, fully compatible with Ethereum, so developers can easily deploy Ethereum dApps.
• P-Chain (Platform Chain): Manages validators and subnets—custom blockchains built within Avalanche.

At the heart of all this is the Avalanche consensus protocol, which uses a clever randomized sampling process to quickly agree on transactions. The result? Thousands of transactions per second, with nearly instant finality.

Whether it’s lending, borrowing, trading assets, or staking, Avalanche is packed with DeFi action. Its compatibility with Ethereum’s tools also means developers can port over existing DeFi apps effortlessly, making its ecosystem both diverse and user-friendly.

Avalanche Tokenomics

Avalanche’s tokenomics are centered around its native token, AVAX, with a capped supply of 720 million tokens.

You can stake AVAX to help secure the platform, pay transaction fees with it, and even use it within the custom subnets.

AVAX Token Allocation

The AVAX token distribution is designed to support Avalanche’s growth and ensure the ecosystem thrives. With a total supply of 720 million tokens, here’s how they’re divided:

• Staking Rewards: 50% of the supply is reserved for staking rewards to keep the network secure and reward validators.
• Team: 10% is allocated to the team, and it’s fully unlocked—showing their dedication to the project.
• Foundation: 9.26% goes to the Foundation, with 3.94% unlocked and 5.32% locked for future use.
• Community & Development Endowment: 7% is unlocked and ready to support projects that grow the ecosystem.
• Public and Private Sales: Over 13% was allocated across different sales (Options A1, A2, and B) and private rounds, all fully unlocked to back early investors.
• Strategic Partners and Airdrops: 5% is set aside for partnerships, and 2.5% was airdropped to bring more users into the ecosystem.
• Seed Round: 2.5% was allocated to early-stage investors, and it’s now fully unlocked.
• Testnet Incentive Program: 0.31% was used to reward early testers who helped Avalanche during its testnet phase.

This chart shows the allocation of AVAX’s maximum supply of 720 million tokens. The breakdown is as follows:

This allocation keeps things balanced, focusing on both immediate needs and long-term goals while ensuring everyone in the ecosystem benefits.

AVAX Vesting Schedule

The AVAX vesting schedule divides 360 million tokens across various allocations with specific release conditions:

This release structure ensures a controlled token supply over several years.

Avalanche’s Token Unlock Events

The AVAX Foundation plans periodic token unlocks every 90 days, each releasing 1.67 million tokens (0.23% of max supply), worth approximately $57.4 million (0.41% of market cap).

The allocation increases the Foundation’s share by 2.5% per unlock, progressing from 44.9% in February 2025 to 46.1% by May 2026.

AVAX’s circulating supply will rise from 323.33 million to 331.66 million during this period, with the market cap projected to grow from $11.13 billion to $11.42 billion.

Avalanche Use Cases

Avalanche is a blockchain platform that’s proving to be pretty adaptable, finding uses in a variety of industries.

Here are five real-world examples where it’s being put to work:

Decentralized Finance (DeFi):

DeFi is all about efficiency, and Avalanche is built for it. With fast transactions and low costs, it’s hosting decentralized exchanges, lending platforms, and yield farming tools. For instance, Aave and Curve Finance are using Avalanche to provide users with quicker transactions and reduced fees compared to other blockchains.

Non-Fungible Tokens (NFTs)

Avalanche has also gained traction in the NFT world. It’s compatible with Ethereum-based tools, which means NFT marketplaces can integrate seamlessly. This has attracted creators and collectors looking for affordable and fast transactions. A project like Kalao taps into this, offering a platform for buying, selling, and trading NFTs efficiently.

Enterprise Solutions

For businesses, Avalanche offers something unique: customizable subnets. These allow companies to create private or permissioned blockchains that fit their specific needs. In supply chain management, for example, this is helping companies ensure transparency. Blockticity uses Avalanche to create secure digital certifications, reducing fraud and improving accountability.

Gaming

Speed and scalability make Avalanche a natural fit for blockchain-based gaming. It supports in-game asset tokenization and decentralized marketplaces, which lets players own and trade digital items more freely. Gaming platform Gunzilla has adopted Avalanche for its infrastructure, benefiting from its scalability and focus on smooth user experiences.

Digital Identity and Certification:

Another practical application is in digital identity and certification management. For instance, the California DMV is using Avalanche to digitize millions of car titles. This means faster title transfers, better fraud prevention, and less hassle for residents, who can access their titles via a mobile app.

These examples show how Avalanche is being used in practical, everyday applications—from finance to gaming and beyond. It’s not about hype; it’s about solving real problems with tools that industries are starting to rely on.

Avalanche Standout Features

Avalanche stands out in the crowded blockchain space with three key features: its unique consensus mechanism, support for multiple virtual machines, and the use of subnets.

Together, these elements boost the platform’s scalability, adaptability, and overall performance. Let’s break them down:

Consensus

Avalanche’s consensus protocol is a fresh take on blockchain consensus. It blends elements of classical consensus (known for speed) and Nakamoto consensus (known for decentralization).

The result? A system that can handle thousands of transactions per second with near-instant finality.

How does it work? Nodes use repeated sub-sampled voting—essentially checking in with a random subset of validators to decide whether a transaction is valid.

This efficient process not only enhances throughput but also strengthens security, making Avalanche a reliable choice for high-demand applications.

Virtual Machines

Avalanche is designed with flexibility in mind, and its support for multiple virtual machines (VM) is a big part of that. A VM is essentially the blueprint for how a blockchain operates—its rules, state, and how users interact with it.

Avalanche allows developers to use pre-existing VMs like the Ethereum Virtual Machine (EVM) or create their own custom ones. This means developers can build blockchains tailored to their specific needs, from DeFi applications to enterprise solutions, all while leveraging Avalanche’s infrastructure.

Subnets

Subnets are like customizable mini-networks within Avalanche. Each subnet is a group of validators that work together to maintain one or more blockchains. These blockchains can have unique features, consensus mechanisms, and governance structures, all while operating independently from the main network.

This setup not only reduces congestion on the primary chain but also allows Avalanche to scale horizontally. Whether it’s forprivate enterprise blockchains or public gaming platforms, subnets give developers the freedom to innovate without compromising the network’s overall performance.

Avalanche Pros and Cons

Avalanche (AVAX) is a powerful blockchain platform with some strengths and some drawbacks.

Here’s a quick breakdown:

Avalanche offers speed, scalability, and energy efficiency but faces hurdles like accessibility, ecosystem maturity, and strong competition.

How to Buy Avalanche?

You can buy Avalanche from exchanges like Binance, OKX, and Margex.

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In this guide, we’ll use Binance as an example; it’s a simple 3-step process.

Step 1: Sign Up or Log In

First you need to sign up or log in, so go the “Log in /Sign up” buttons on the top right side and choose the one that applies to you.

For this example, we’ll be logging in, as you can see in the screenshot below, you have four different ways to log in:

• Log in via email or phone number
• Log in with your Google account
• Log in with your Apple account
• Log in via QR code

Alternatively you can choose “Create a Binance account” if you haven’t created one yet.

Step 2: Buy AVAX on Binance

Once you’re logged in. Go to the “Buy Crypto” section in the top left side.

Next choose “Buy Crypto via Bank Card”, which will take you to the next page.

Step 3: Choose the Amount of AVAX You Want to Buy

On the “Buy Crypto” page, go to both drop-down menus; on the “Spend” drop-down menu, choose the currency you want to use to buy AVAX.

On the “Receive” menu, type in “AVAX” and select it. Next, click the yellow “Buy AVAX” button, and you’re ready!

That’s it! The AVAX will be deposited into your exchange wallet.

Avalanche vs. Ethereum

Avalanche and Ethereum are two big names in the crypto space, both supporting decentralized applications (dApps) and smart contracts.

While they share similar goals, they take very different paths when it comes to things like scalability, transaction speed, and fees. Let’s break it down.

Scalability and Transaction Speed

The Avalanche network stands out for its speed, handling up to 4,500 transactions per second (TPS). That’s a massive leap compared to Ethereum’s current rate of about 15 TPS. How does Avalanche pull this off? It uses a unique consensus mechanism and a multi-chain design that ensures transactions are finalized quickly.

Transaction Fees

Fees are another area where these two differ. Ethereum’s gas fees can skyrocket during busy periods, making transactions pretty expensive. Avalanche, on the other hand, keeps things budget-friendly with fees averaging just $0.08 per transaction—even when the network is under heavy load.

Ecosystem and Adoption

Ethereum, launched in 2015, is the OG smart contract platform. Its ecosystem is vast, with deep roots in areas like DeFi and NFTs, and a huge base of developers and users. Avalanche, which entered the scene in 2020, is the new kid on the block. But it’s growing fast, thanks to its innovative tech and developer-friendly approach. It’s already attracting attention from major DeFi projects and NFT platforms.

Consensus Mechanism

Ethereum made a big move in 2022, switching from Proof of Work (PoW) to Proof of Stake (PoS). This change reduced its environmental footprint and laid the groundwork for better scalability. Meanwhile, Avalanche runs on its own Avalanche Consensus, a system that delivers lightning-fast transaction finality and handles high throughput with ease.

Can AVAX Overtake ETH?

Here’s the big question: Can Avalanche surpass Ethereum? Avalanche definitely has the edge in terms of speed and cost, but Ethereum’s dominance comes from its well-established ecosystem and massive adoption. Plus, Ethereum’s ongoing upgrades are tackling its scalability issues, which could close the performance gap. Still, with its rapid growth and cutting-edge technology, Avalanche is positioning itself as a serious contender in the blockchain space.

Is Avalanche a Good Investment?

Avalanche (AVAX) has several reasons it might be a good investment:

1. Fast and Scalable: Avalanche can handle over 6,500 transactions per second and settles them almost instantly, making it great for apps that need speed and efficiency.
2. Growing Network: The Avalanche ecosystem is expanding, especially in DeFi and gaming, with projects like DFK and DEXALOT driving more users and activity.
3. Big Partnerships: Companies like Amazon Web Services (AWS) are working with Avalanche, showing strong trust and interest in its technology.
4. Limited Supply: AVAX burns transaction fees, reducing the total supply over time. This could increase its value as demand grows by creating upward pressure on the token.

These are some of the factors that make AVAX a promising investment opportunity.

Will AVAX Reach $100?

Avalanche’s native token, AVAX, is a classic example of cryptocurrency market volatility. Back in November 2021, it hit an all-time high (ATH) of $147.50 during the market peak.

Year-to-date (YTD), the token is down 14.16%, showing some of the challenges it’s facing this year. However, zoom out a bit, and there’s a brighter picture: over the past year, AVAX has gained an impressive 58.44%, signaling strong recovery potential.

That said, its long-term performance tells a different story, with a 51.43% decline since launch—a reflection of the broader market trends.

Avalanche (AVAX) has an ownership structure that shows a good balance between big players and everyday investors. Whales hold 26.93% of the circulating supply, while investors (medium-sized holders) control the largest chunk at 42.28%.

Retail holders make up 30.80%, so there’s a healthy mix of participants. This setup reduces the risk of whales completely dominating the market while showing strong confidence from medium-sized holders who are likely in it for the long term.

On the price side, AVAX has a high correlation with Bitcoin, sitting at 0.92 for 30 days and 0.78 for 60 days. In simple terms, when Bitcoin moves, AVAX tends to follow closely. This is great news if Bitcoin is in a bull run since AVAX is likely to ride that wave. Of course, it also means AVAX could feel the pinch if Bitcoin’s price drops.

Overall, this combination looks bullish for AVAX. Its ownership structure points to stability and growing trust, while the strong tie to Bitcoin means it can gain significant momentum during market rallies. If Bitcoin stays strong, AVAX could see some serious upside.

So, what’s the takeaway?AVAX has proven it can bounce back in the right market conditions, especially when Bitcoin is doing well, which makes $100 a realistic target during the next bull run. That said, its history of ups and downs shows it will need strong market support and consistent demand to get there.

What Crypto Analysts Think About Avalanche?

Avalanche (AVAX) has been a key focus for crypto analysts lately, with many seeing potential for big moves ahead. Oliver Dale, Editor-in-Chief of Blockonomi, noted that AVAX recently hit $37.20—its highest point since May 2024. This marks a 105% rebound from its low earlier this year, showing strong recovery.

On X (formerly Twitter), analysts have mixed but optimistic views. Crypto analyst Grronk predicts that AVAX could reach $130, or even $200 under ideal conditions. His outlook is based on the coin’s past cycles and its current upward trend. On the higher end, Beastlorion sees potential for AVAX to hit $300, pointing to chart patterns that suggest the coin is bouncing toward the upper range of its price channel.

Wonton9000 described AVAX as a coin that moves “very slowly, then all at once.” He reminded followers of past price jumps, like its climb from $8 to $50 and $20 to $120, and predicted a similar move to $200. “When it happens,” he joked, “faces will melt, and everyone will act surprised.”

Finally, CryptoBullet adds a more technical take, suggesting that AVAX could target $230 to $285 in a bull market. He believes a short correction is needed first before the coin pushes toward new highs, based on its macro chart patterns.

With Avalanche price predictions ranging from steady growth to sharp rallies, AVAX is clearly a coin analysts are monitoring closely.

Conclusion: Avalanche Review

Avalanche (AVAX) is quickly proving itself as a strong player in the blockchain world. With its super-fast transactions, low fees, and ability to support a wide range of applications, it’s clear why so many developers and investors are drawn to it. Avalanche’s standout features, like its unique consensus mechanism and the flexibility to create custom subnets, make it a platform designed for scalability and innovation.

What really sets Avalanche apart is how it combines speed and security without cutting corners on decentralization. Its growing DeFi and NFT ecosystems show that it’s more than just hype—real projects are choosing Avalanche for its powerful technology.

Of course, challenges remain. Competing with Ethereum, the current giant of smart contract platforms, is no small task. But with its rapid growth and focus on usability, Avalanche is carving out its own space and making a name for itself as a serious alternative.

Whether you’re a developer looking for a flexible platform or an investor exploring promising opportunities, Avalanche is worth paying attention to. It’s a platform built for the future, and as the blockchain world evolves, Avalanche is a project to watch.

See Also: 

• Avalanche Price Prediction 2025-2030
• Best Avalanche Crypto Casinos
• How to Buy AVAX (Avalanche): A Beginner’s Guide
• Polygon Review: Beginner’s Guide to POL
• Polkadot Review 2025: Beginner’s Guide to DOT

Frequently Asked Questions

References

• CryptoRank. “Avalanche (AVAX) Token Unlocks and Vesting: Schedule and Tokenomics.” CryptoRank, https://cryptorank.io/price/avalanche/vesting.
• Ethereum Foundation. “Consensus Mechanisms.” Ethereum.org, https://ethereum.org/en/developers/docs/consensus-mechanisms/. Accessed 20 Nov. 2024.
• “Blockchain Startup Raises Quick $42M in First Sale.” Cornell Chronicle, 3 Aug. 2020, https://news.cornell.edu/stories/2020/08/blockchain-startup-raises-quick-42m-first-sale. Accessed 20 Nov. 2024.
• “Avalanche Fundamentals: Subnet Architecture Explained.” Medium: Coinmonks, https://medium.com/coinmonks/avalanche-fundamentals-subnet-architecture-explained-e69f5aa3d75a. Accessed 20 Nov. 2024.
• “California DMV Makes History: Digitizes 42 Million Car Titles on Avalanche Blockchain.” Avalanche Blog, https://www.avax.network/blog/california-dmv-makes-history-digitizes-42-million-car-titles-on-avalanche-blockchain. Accessed 20 Nov. 2024.
• “Introduction to Avalanche: The DevRel Blog.” Medium: Avalanche AVAX, https://medium.com/avalancheavax/introduction-to-avalanche-the-devrel-blog-b38257fc0c07. Accessed 20 Nov. 2024.

Disclaimer

Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
99Bitcoins may receive advertising commissions for visits to a suggested operator through our affiliate links, at no added cost to you. All our recommendations follow a thorough review process.

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Anthony Clarke

Crypto Writer

Anthony Clarke's crypto journey began in 2017, sparked by a discovery on Quora. After purchasing Bitcoin and Verge as his first cryptocurrencies, he developed a deep interest in the emerging world of blockchain technology. This led him to begin writing... Read More

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