Does Avalanche (AVAX) Have a Chance to Be the Biggest "Ethereum Killer"? Altcoins have fundamentals to stand out in the market, bu...

Does Avalanche (AVAX) Have a Chance to Become a Major Ethereum Killer?



Does Avalanche (AVAX) Have a Chance to Be the Biggest "Ethereum Killer"? Altcoins have fundamentals to stand out in the market, but to what extent does this drive Avalanche?

The main purpose of Avalanche is to be a competitor to Ethereum (ETH). Therefore, its network has solved the major problems of the major altcoins in the market, such as high fees and slow network.

Avalanche promises to process 4,500 transactions per second, while ETH only handles 14 transactions in the same period.

But in the “Ethereum Killer” category, all Ethereum competitors share the aforementioned characteristics. However, the Avalanche has other key highlights that make it a strong contender.

For example, its scalability is possible because the altcoin has three separate blockchains with different purposes:

X-Chain: a decentralized platform for creating and trading smart 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’s worth noting that Avalanche’s consensus mechanism varies by use case. Additionally, the altcoin has been working on interoperability between its blockchain and Ethereum.

Avalanche Token also has many advantages

When users transact with AVAX, transaction fees are burned, making altcoins scarce. Additionally, the token is used to secure the network through the staking process, pay fees, and provide a basic unit of account across subnetworks created on the Avalanche platform.

Another point, AVAX's performance in the platform economy is impressive. This is because Avalanche provides multiple services such as: B. Peer-to-peer lending, trading and creating subnets. All of these require developers to own AVAX in order to enjoy them.

Despite all these advantages, why haven't cryptocurrencies skyrocketed?

Firstly, it can be mentioned that the hype of the Ethereum competitor did not last long. The emergence of ETH 2.0 has called into question the existence of the "Ethereum Killer".

Additionally, Avalanche has plenty of competitors that also have positive highlights, such as Polkadot (DOT) and Cardano (ADA). The large amount of money invested to become a cryptocurrency validator is also a distinct disadvantage.

For example, with an altcoin like ADA, you don’t have to be an investing whale to earn passive income through staking; AVAX requires at least 2,000 tokens to be an Avalanche validator, which is self-defeating.

At the time of writing, the aforementioned number of tokens equates to a $24,000 investment. While Avalanche has undergone a major market correction, there's no doubt that it's not an investment for every investor.

Scalability solutions and Ethereum completing the transition to version 2.0, according to Vitalik Buterin, the altcoin will perform 100,000 transactions per second, which may end Avalanche’s promise of market acceptance, despite its positive meaning.