The Avalanche price has lost momentum lately. AVAX, its native token, is trading at $89.65, which is about 40% below the highest level in 2021. Its total market capitalization has dropped to about $22 billion, making it the 12th biggest cryptocurrency in the world.
Avalanche is an alternative to Ethereum
Ethereum is the best-known smart contract network in the world. It has a leading and commanding market share in its industry. Indeed, some of the most common decentralized projects are built using Ethereum’s technology.
However, in the past few months, Ethereum has come under so much pressure from relatively new and well-funded blockchain projects. These projects are seeking to provide developers with an alternative environment to build decentralized projects like those in non-fungible tokens (NFT) and decentralized finance (DeFi).
Avalanche is one of the biggest alternatives to Ethereum. It is a smart contracts platform that enables developers to build quality decentralized applications (Dapps). The network’s main advantage is the fact that developers find it easy to build projects on its ecosystem.
Most importantly, developers love the fact that the network is significantly faster than Ethereum and other Ethereum-killers. For example, it has a transaction per second rate of about 4,500 while Ethereum is able to handle less than 20 transactions. Its transaction finality of less than 2 seconds while Ethereum has about 6 minutes.
According to Defi Llama, there are now 141 apps built on Avalanche. They have a total value locked of about $11 billion, making it the fourth-biggest after Ethereum, Terra, and Binance Smart Chain. Some of the top apps built in the network are Curve, Multichain, Aave, and Abracadabra, among others. Other popular apps in its network are Trader Joe and Pangolin Exchange.
Avalanche price prediction
The daily chart shows that the AVAX price has been under intense pressure in the past few months. It reached an all-time high of $146 in November and crashed by almost 40% since then. Along the way, it has moved below the 25-day and 50-day exponential moving averages (EMA).
It is also slightly above its key support at $77.45, which was the lowest level in December. This price coincided with the 50% Fibonacci retracement level.
Therefore, for now, the path of the least resistance for the Avalanche price is lower, with the next key level to watch being the 61.8% retracement at $61.
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