The Avalanche (AVAX) token has all the potential to become one of the greatest projects in history, making them a viable long-term investment for many developers. However, many other cryptocurrencies offer similar benefits as this one, so you may be wondering: What makes Avalanche special?
In this review, we’re going to cover the fundamentals of the Avalanche (AVAX) token, including when it was first launched, what makes it unique, and how you can acquire this token if you decide to invest in it.
How Was Avalanche (AVAX) Created?
Avalanche (AVAX) was created to be a decentralized and secure network/ecosystem for people. Essentially, it allows people to execute smart contracts and create decentralized applications. The company “Ava Labs” was responsible for creating and releasing the Avalanche token in September 2020.
The Cornell researcher, Emin Gün Sirer, was the individual behind the process of creating Avalanche. When the token was first released, it raised approximately $42 million in under five hours, which is an impressive rate for a new cryptocurrency.
Overall, Avalanche (AVAX) features a triple-blockchain mechanism that allows people to make transactions and developments easier and faster. One of the most remarkable features of this project is that developers can create new blockchains and have full control over them, allowing them to set particular tokens, fees, parameters, and more.
The triple-blockchain mechanism involves the X-chain, the C-chain, and the P-chain. Each one has a particular mechanism that helps developers simplify the network they’re building. Avalanche uses a proof of stake (PoS) protocol that allows any user to stake coins inside the network.
What Makes Avalanche (AVAX) Special?
The Avalanche (AVAX) token is special because it offers a high degree of programmability for developers. Additionally, it solves many congestion issues that other cryptocurrencies, such as Ethereum, may experience in the future.
Avalanche is scalable, meaning that it provides much faster transaction times while keeping relatively low fees for the user. According to the developers, Avalanche can process up to 6,500 transactions per second, which is much faster than other projects.
Finally, the Avalanche token is considered deflationary, meaning that its transaction fees are burnt to control the amount of Avalanche tokens currently in circulation. In essence, the developers have more control over the asset’s demand, which allows them to regulate its price and keep it stable.
How Many Avalanche (AVAX) Tokens Are Available Today?
Avalanche’s primary token, AVAX, features a total supply of 360 million tokens with a maximum cap of 720 million tokens. As of May 2021, its price is $33.54 with a global trading volume (24-H) of $606,724,842.53.
According to the developers, the AVAX token may be used for staking, paying network fees, executing subnets, exchanging assets, incentivizing validators, and securing the Avalanche network.
Where Can You Purchase Avalanche (AVAX) Tokens?
Currently, you can purchase Avalanche (AVAX) from many popular crypto exchanges, such as BitPanda, Binance, Huobi, OKEx, and more. You may choose the option you believe most appropriate for you, although you must keep in mind each broker’s fees before you make a decision.
Bottom Line
Avalanche (AVAX) is a highly ambitious token. This token is often compared to Ethereum, which is currently the best platform for creating decentralized (DeFi) projects. However, it’s important to note that making transactions with Ethereum is fairly more expensive and time-consuming, making Avalanche a more attractive option for investors.