Why Avalanche Is a Top Proof-of-Stake Crypto to Buy

Here’s why Avalanche (CRYPTO:AVAX) is a top proof-of-stake cryptocurrency to consider right now as part of a well-balanced portfolio.

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Often dubbed as an “Ethereum Killer,” Avalanche (CRYPTO:AVAX) is a cryptocurrency that has gained much popularity since late 2021. It is one of the top PoS (proof-of-stake) networks that comes with smart contract capabilities. 

Avalanche has been growing at a rapid rate, and it is this massive growth rate that has caught investors’ attention. This blockchain network prioritizes high transaction speeds, environmental friendliness, and low transaction charges.  

Investors looking for a PoS cryptocurrency that has the potential to outperform this year may want to consider investing in Avalanche. 

Let’s take a look at why Avalanche is a top option for investors looking for a PoS option. 

Interoperability

Avalanche is one of the few cryptocurrencies that focus on interoperability. This crypto is entirely compatible with different Ethereum-based apps. While other digital tokens, such as Polkadot and Cosmos, also provide this feature, the process with Avalanche is a bit unique. 

Cosmos provides what’s often called “the Internet of Blockchains,” and Polkadot uses parachains. Avalanche, however, uses subnets. Subnets are consensus mechanisms that developers use to build their own chains. Thus, developers can build parallel chains and then use their subnet for making transactions. 

Moreover, it is possible for anyone to stake Avalanche. Avalanche has significantly lower hardware requirements among all other blockchains offering to stake. Most of these requirements are easily available on a decent PC. 

Partnerships with major global businesses

Apart from the network’s Blizzard Fund and Rush program, Avalanche has bagged multiple other partnerships recently. Circle, a peer-to-peer payment platform, has started to issue USDC on Avalanche. On top of that, Chainlink’s top oracles are now available on Avalanche as well. 

U.S.-based accounting firm Deloitte will be partnering with Avalanche to use the blockchain for helping local governments effectively manage FEMA (Federal Emergency Management Fund) capabilities during natural calamities. These partnerships are just some of many that are continuing to pop up, growing Avalanche’s ecosystem and importance in the crypto world.

Proof of stake provides faster transactions with lower fees

Much of the popularity around Avalanche of late is tied to the network’s fast transaction speeds and low fees. Compared to Ethereum, Avalanche comes out ahead in most metrics right now.

Accordingly, investors looking for the layer-1 blockchain of the future have flocked to projects like Avalanche. This network’s PoS validation mechanism is one that allows for all this to take place. With smart contracts enabling tremendous growth potential in the DeFi world, there’s a lot to like about where Avalanche is headed.

Bottom line

With robust blockchain architecture, faster transactions, lower fees, major partnerships and massive growth potential, Avalanche is indeed a top PoS crypto to consider. Although volatility is a crucial factor impacting the cryptocurrency market, Avalanche seems to have a promising future ahead.

Of course, this token must meet investors’ risk-tolerance level to be considered part of a well-balanced portfolio. However, for those looking for a speculative hyper-growth asset, Avalanche certainly provides an intriguing investment thesis right now.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald owns Ethereum. The Motley Fool owns and recommends Ethereum.

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