Avalanche: The Crypto Network of the Future?

Here’s why Avalanche (CRYPTO:AVAX) may be a top cryptocurrency long-term investors may want to consider on this recent dip.

| More on:
cryptocurrency, crypto, blockchain

Image source: Getty Images

Avalanche (CRYPTO:AVAX) is a cryptocurrency that’s been seeing some relatively impressive upside moves of late. Over the past week, this token has trended downward and remains in the red at the time of writing. However, previous up trends with Avalanche are noteworthy, considering the degree to which this token has outpaced the overall market.

Let’s dive into whether this positive momentum Avalanche has seen of late can be maintained.

Most energy-efficient cryptocurrency network

The environmental impact of crypto mining is something many investors (and now regulators) are keenly aware of. However, for Avalanche, this network’s proof-of-stake validation model is something of a competitive advantage.

New research points to the Avalanche blockchain as one that is among the most energy-efficient of its large-cap peers. As per a report from Crypto Carbon Ratings Institute, Avalanche blockchain utilized only 0.0005% of the energy that Bitcoin blockchain used. And it used just 0.0028% of the energy that the Ethereum blockchain utilized.

There are other blockchains out there that use less than Avalanche. However, in terms of efficiency relative to the energy used, Avalanche ranks among the top blockchains in the world.

A significant push to woo top-notch projects

Among the most recent relevant growth drivers for the Avalanche network is news that the Avalanche Foundation put forward a massive fund to encourage developer interest. The Avalanche fund is comprised of four million AVAX tokens, valued at roughly $290 million at the time of the announcement.

The goal with this move is to foster “subnet” functionality for the Avalanche blockchain. The hope is that Avalanche’s subnets will be the catalyst developers look to for DeFI and Web3 development, particularly in the gaming space.

Early targets of this “Multiverse” initiative are various DeFi projects including DeFi Kingdoms. Additionally, this effort will lead to the formation of CRYSTAL, a new Avalanche-native token that will complement the existing JEWEL token.

The other members of this project’s first cohort are Wintermute, Jump Crypto, Aave, Golden Tree Asset Management, Securitize, and Valkyrie.

Bottom line

For investors who are environmentally conscious, Avalanche has a lot to offer. For those seeking growth, there’s a lot to like about Avalanche’s impressive investment in its core developer network.

Indeed, the Avalanche ecosystem is one with the potential to drive growth in the fast-growing DeFi and Web3 sectors. For long-term bulls on crypto in general, Avalanche is a key project to keep an eye on 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 Bitcoin and Ethereum.

More on Cryptocurrency

cryptocurrency, crypto, blockchain
Cryptocurrency

2 Crypto Stocks to Buy Despite Bitcoin’s (CRYPTO:BTC) Slump

Two TSX crypto stocks are interesting buys, despite the slump of cryptocurrencies and the support of a top U.S. investment…

Read more »

Coworkers standing near a wall
Cryptocurrency

Ripple Lawsuit: Wins Aren’t Moving XRP

Ripple Labs appears to be winning its lawsuit, but the price of XRP (CRYPTO:XRP) isn't moving. Why's that?

Read more »

Big Bitcoin logo.
Cryptocurrency

Warren Buffett Slams Bitcoin: Is He Right This Time?

Warren Buffett recently slammed Bitcoin (CRYPTO:BTC). Is he right?

Read more »

crypto, chart, stocks
Cryptocurrency

Where Is Polkadot Headed in 2022?

Here's why Polkadot (CRYPTO:DOT) may be headed higher during the latter half of this year, following a dismal start to…

Read more »

A stock price graph showing declines
Cryptocurrency

Struggling Cryptos: Market Cap Falls 3.37% Overnight  

The global crypto market lost a significant amount of its market cap overnight, as the selling pressure on cryptocurrencies continue.

Read more »

Bitcoin
Cryptocurrency

Bitcoin Tanks 38% in 2022: Buy It Cheap?

Bitcoin has fallen considerably this year, and it might be worth investing in at a discount for stellar returns.

Read more »

Person Hands Opening Mailbox To Remove Newspaper
Cryptocurrency

XRP vs. SEC Lawsuit: Some Interesting Developments

The summary judgment in the ongoing legal battle in the cryptocurrency market might come in 2023, not this year.

Read more »

crypto blockchain
Cryptocurrency

Is XRP the Large-Cap Crytpocurrency to Own Right Now?

Let's take a deeper look at whether XRP (CRYPTO:XRP) is a digital token worth investing in at this particular juncture…

Read more »