- Daily trading volume of over $400 million
- Market cap of over $4,9 billion
- Faster than other blockchain networks with the ability for 4500 transactions per second
- Transaction fees are burned leading to scarcity of the AVAX token.
- Dynamic fee model with subnets creation carrying the highest fees while AVAX transactions carry lower fees.
- The AVAX token can also be staked for earning additional rewards.
- The Avalanche network is compatible with Solidity, the programming language of Ethereum and developers can easily transfer their dApps to AVAX.
- The Apricot update has resulted in a 50% reduction in transaction fees.
- Three blockchain networks may lead to congestion in the future for the AVAX blockchain.
- Needs better spam management to prevent 51% attacks on the network.
The Avalanche Token (AVAX) is trying to build the next generation of blockchain smart contracts and is a direct rival of Ethereum. Avalanche has tried to solve many of the issues currently plaguing Ethereum such as high fees, slow transaction times, and congestion in the network. Rather than becoming a simple smart contract running network, Avalanche has managed to create an identity of its own through its unique technology.
The Avalanche network has a native network called the AVAX which is used for paying transaction fees on the network, for governance purposes, and for staking.
Avalanche is constantly innovating and providing real-time solutions to various issues of concern in the blockchain industry. The AVAX token has become a popular cryptocurrency and is among the top twenty cryptocurrencies by market cap.
Avalanche Token (AVAX) Chart and Price
The all-time high price of one AVAX was $0.144.96 on November 21, 2021. It is currently trading at $91.55 at the time of writing (Source: CoinGecko). The all-time low price was $2.80 on December 31, 2020. Comparing the all-time low and all-time high price, we get returns of about 3151% which are very impressive returns. The AVAX token has established its position as a leading cryptocurrency.
The initial total supply of AVAX was 720, 000, 000 tokens and half the supply or 360,000,000 tokens were available at mainnet launch. The distribution mechanism is explained below.
- 50%- Reserved for staking rewards.
- 2.5% – Reserved for sale. Out of this, 10% of tokens were released on mainnet launch and the rest every three months.
- 3.5% – Reserved for private sale. Out of this, 10% of tokens were released on mainnet launch and the rest every three months.
- 10% – Reserved for public sale. Out of this, 10% of tokens were released on mainnet launch and 15% every three months over a period of 18 months.
- 9.26% – Reserved for the foundation with a token vesting and release schedule of ten years.
- 7% – Reserved for the community.
- 0.27% – Reserved for testnet incentive program. Locked for one year.
- 5% – Reserved for strategic partners,
- 2.5% – Reserved for airdrops. To be carried out over four years.
- 10% – Reserved for the AVAX team and locked for four years.
Has Avalanche Token been audited and doxxed?
Yes. The AVAX token was audited by Halborn Security and has been doxxed. The team behind AVAX Token publishes regular documentation via press releases and is active on social media channels.
Detailed Review of Avalanche Token (AVAX)
Avalanche allows both private and public blockchains and anyone with a minimum staked 2000 AVAX tokens can become a validator. However, Avalanche carries out KYC checks to ensure all validators are genuine. Avalanche operates three networks or blockchains: Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain).
The Exchange Chain (X-Chain) allows the operation of tokens on the AVAX network.
Platform Chain (P-Chain) is the hosting network for dApps and smart contracts.
Contract Chain (C-Chain) is used to run subnets and carry out validation.
The Avalanche token has been built on its own blockchain network and is sufficiently interoperable with the Ethereum network. It is planning to add cross-chain functionality soon.
This division between three separate networks inside the main network has resulted in a higher transaction time for Avalanche without compromising on decentralization. The AVAX network has become a well-sought blockchain for many developers due to its faster speed (4,500 tps) and lower fees.
The Avalanche network operates an Ethereum-Avalanche bridge using which users can transfer DeFi assets seamlessly across the two networks.
The Avalanche network hosts Pangolin, one of the largest DEX on Avalanche and the network has achieved a $1B trade volume across all DEX’s.
Where to Buy Avalanche Tokens?
You can buy AVAX either through cash via P2P (peer-to-peer), credit or debit cards, or through other cryptocurrencies.
If you already hold some crypto, then you can use the coins to purchase AVAX directly through the supported decentralized exchange known as Pangolin. All you need to do is connect your wallet such as Metamask and select the appropriate coin pair that you wish to use for purchasing AVAX (for example BTC/AVAX or BNB/AVAX). The decentralized exchanges are a quicker and easier method that guarantees anonymity as you do not have to deposit fiat currencies or complete a KYC process before purchasing the Avalanche Token. You can also use AVAX for purchasing other altcoins through the decentralized route as explained above.
What Can you do With the Avalanche Token?
Decentralized Finance (DeFi): The Avalanche network supports DeFi and is compatible with all Ethereum assets. It plans to provide insurance, lending, decentralized exchanges, stablecoins, and prediction markets for its users in the future. Some DEXs are already operating on the Avalanche network including Pangolin and Snowball.
Enterprises: The Avalanche network can provide enterprise-grade solutions to governments and MNCs including supply chain solutions, document tracking, fund asset management, digital identity projects, and document tracking.
NFT Marketplace: the Avalanche network supports NFTs including, art, certifications and licenses, collectibles, the music industry, and game items.
Hodl as a long-term investor: The developers of AVAX have plans to include the token as a form of payment on adult NFT marketplaces all over the world. You could also simply hodl it and gain from its price appreciation in the long term. The token also generates passive income for its holders as it can be staked.
Swap AVAX to other BSC/ETH tokens: You can use AVAX and directly swap to other altcoins on a decentralized exchange. The process is quick and simple and is described below.
How to Swap AVAX to other altcoins
Simply head over to a decentralized exchange and connect your wallet. Then, select the amount of AVAX you wish to spend (factoring in transaction fees) and swap it for another crypto token. You will receive the tokens in the same wallet.
How to Buy AVAX?
In order to buy AVAX, you will need to use a centralized exchange or a decentralized exchange. Decentralized exchanges (DEXs) are simple and easy to use and do not require any registration. The process of token swap on DEXs has been explained above.
For purchasing AVAX on a centralized exchange, you will need to register and create an account with the exchange and then deposit fiat currencies or crypto assets that can be used to buy AVAX. You will need to complete Know Your Customer (KYC) procedure to open an account on a centralized exchange.
Steps to open an account on a centralized exchange:
- Go to the exchange site where AVAX is listed and click on the Register button.
- Then select your country of residence and proceed to the registration interface. Here, you will need to provide your email ID/phone number and a password that will be used to login into the newly created account.
- Click on the agree to terms and conditions button and wait for the verification mail or message.
- Clicking on the verification tab will take you to your new account. You will need to provide documentation such as a driving license, passport, or other government-issued IDs to confirm your identity and address. A utility bill and national ID may also be accepted in some cases. This process is known as the KYC regulation and it is in place to prevent the risk of fraud and to ensure that the site is safe for all users.
- Once this additional step is completed, the exchange will activate your account and you can deposit funds to start trading. You can select fiat currencies or cryptocurrencies supported by the exchange to deposit funds to buy AVAX.
- Most exchanges support multiple payment methods including credit/debit card, bank transfer, third-party payment processors, and P2P transfer.
The AVAX token has plans to launch an upgraded of its NFT marketplace that will incorporate the ability for its users to access and mint exclusive NFTs. The developers also plan to launch a global adult NFT ecosystem marketplace and the ability to mint NFTs. This will be an important breakthrough for the AVAX coin and will help in generating more rewards for its users.
The Avalanche network will also launch an upgraded version for its initial launch offering (ILO) platform where developers can launch their new tokens.