Crypto analyst and host of Altcoin Daily Aaron Arnold is eyeing a popular layer-1 smart contract platform to possibly have a breakout year in 2022.
In a new video, the closely followed trader tells his 1.21 million subscribers that Avalanche (AVAX) looks primed to give fellow Ethereum (ETH) competitor Solana (SOL) a run for its money as Solana rebounds from network overload issues last month.
“I think [Avalanche] has the potential to flip Solana, whether it’s in the short term, mid-term, or long term.
I think it has a strong potential future.”
The Altcoin Daily host says that AVAX might also flip Ethereum in terms of transaction volume.
“Obviously Ethereum is the leader for layer-1, open-source DApp [decentralized application] platforms, but… daily transactions of Ethereum and AVAX, the difference here is now just 3% or 33,000 transactions.
AVAX is looking like it’s about to flip Ethereum in transactions, which is a pretty big deal, pretty big metric.”
Arnold next highlights the variety of niches within the crypto space that Avalanche now services.
“The AVAX ecosystem [is] one of the biggest in the space. Huge DeFi [decentralized finance] sector bringing over tons of people from Ethereum’s DeFi sector.
Big NFT [non-fungible token] and gaming sector. We have tooling DApps, privacy wallet…
AVAX is certainly one to watch.”
The YouTube personality also mentions how Avalanche is taking a cue from Ethereum’s successful token-burning mechanism.
“It’s worked out so well [for Ethereum that] AVAX is… doing their own version where they have their own burning mechanism as well.
Supply is reduced in AVAX as AVAX is burned, from transaction fees, creation of assets, creation of blockchains, creation of subnets.
Bull case for Avalanche is that it has a fixed-cap supply like Bitcoin. Not as decentralized as Bitcoin but its tokenomics are similar in that it’s fixed and capped, unlike Ethereum which is not capped.”
Arnold then references a post from the official Avalanche Twitter account which notes that over 700,000 AVAX have been burned including all transaction fees, before concluding,
“I want you to put AVAX on your radar today as a possible 2022 gem.
I think we’re going to see AVAX’s momentum continue.”
Avalanche is up an impressive 12.1% to $75.79 at time of writing, having rallied from a monthly low under $60 two weeks ago. AVAX began the year trading for $110.70.
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