Is there any chance for Avalanche (AVAX) to be a major killer of Ethereum?
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Answer Is there any chance for Avalanche (AVAX) to be a major killer of Ethereum?
Altcoin AVAX has outstanding fundamentals in the crypto market, but how much can this increase the value of Avalanche?
As it is known, the main purpose of Avalanche is to be a competitor to Ethereum and improve what the latter has to offer.
Where the Ethereum network already suffers from many problems, perhaps the most prominent of which are high fees and slow transactions.
Avalanche promises to process 4,500 transactions per second, compared to Ethereum which achieves only 14 transactions in the same period.
But within the “Ethereum killers” category, all of Ethereum’s competitors have the aforementioned qualities.Read:One of the largest gyms in the world accepts cryptocurrency
However, Avalanche seeks to show its strengths and highlights that make it a fierce competitor to Ethereum.
Scalability for example is possible, as the Avalanche he have Three individual blockchains with different purposes, namely:
X-Chain: A decentralized platform for creating and trading digital assets
C-Chain: Allows the creation of smart contracts
P-Chain: Coordinates validators, keeps track of active subnets, and allows new subnets to be created.
It is worth noting that the AVAX consensus mechanism is differentiated according to its use cases.
Additionally, Avalanche works on interoperability between the blockchain and Ethereum.
The Avalanche project also has several advantages when the user transacts with it, as transaction fees are burned, leading to a scarcity of the AVAX coin.
In addition, the AVAX digital currency is used to secure the network through the storage process, pay fees and provide a basic unit of accounting between the different subnets created on the Avalanche platform.
Another point is that AVAX has an impressive performance in platform economics.Read:Cardano founder: We are thinking of launching a stablecoin to improve the demand for ADA coin
This is because Avalanche offers a variety of services, such as peer-to-peer lending, trading and creating affiliate networks.
All of this requires developers to have the AVAX token to enjoy.
Why hasn’t the AVAX cryptocurrency skyrocketed even though it has all these benefits?
The main reason that AVAX has many competitors can be attributed to the Ethereum 2.0 upgrade and its media momentum dominating the first-tier platforms.Read:Germany’s largest banking institution applies for a cryptocurrency license
As for Avalanche’s competitors, there are many, most notably Polkadot (DOT) and Cardano (ADA).
There is something wrong with the Avalanche project, where in order to be staked and achieve passive income, you must have at least 2,000 AVAX coins, which is a large amount compared to the Cardano project, which can be staked in a small amount.
In conclusion, it can be said that the Avalanche project has the hope of progressing and developing further and bridging the Ethereum gap, but if Ethereum can improve its ability to expand and increase the rate of transactions, then it becomes more difficult than ever for the Avalanche project.
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