AVAX, the native token on the Avalanche platform, has had a great year in 2021. Since the beginning of 2019, the price of this token has been on the rise. AVAX reached an all-time high of $121 on November 21 in the second half 2021.
AVAX climbed to the top ten cryptocurrencies in terms of market capitalization at $146.22, with a circulating supply close to 400 million tokens and a price tag of $146.22. It is currently at the 11th spot. The AVAX token’s value has risen by more than 3,000% in the past year, thanks to this price increase.
This surge was triggered by the partnership between Ava Labs (consulting firm Deloitte) and Ava Labs. Ava Labs is directly involved in the Avalanche Blockchain development. Emin Gun Sirer (founder and CEO of Ava Labs) stated that this partnership was intended to “build more efficient disaster-relief platform.”
It will simplify the process of validating federal disaster claims with Federal Emergency Management Agency (FEMA).
Avalanche could not have gotten this development at a more perfect time. Many people are frustrated by the increasing cost of the Ethereum (ETH), platform. Avalanche is long considered a potential competitor for Ethereum because it supports smart contracts. Smart contracts are both the foundation of Decentralized Finance (DeFi) applications as well as non-fungible tokens.
Ethereum Will Be Overtaken by Avalanche
Ethereum (BTC) is the second most-popular blockchain and the most valuable cryptocurrency by market capital in the world, after Bitcoin (BTC). Avalanche, however, is moving at a rapid pace to become a strong competitor to Ethereum. Avalanche’s goal is to perform faster and more affordable transactions than Ethereum. While the partnership with Deloitte doesn’t have any transformative power, it signals that Avalanche is on the right track. It is unlikely that Ethereum will lose the top spot in smart contracts for the foreseeable future.
Dogecoin was affected?
Some dog-themed coins Dogecoin and Shiba Inu (SHIB) were surprised by the AVAX price rise. DOGE was particularly high up in the top 10 cryptocurrencies by market capitalization. AVAX took the 10th spot with its latest all-time high, but it was quickly surpassed. DOGE is currently in the 10th spot, while AVAX is at the 11th. SHIB is at the 13th place.
AVAX: Should you Invest?
It is important to not overlook the meteoric rise in AVAX. Over the same time, other well-established cryptocurrencies such as Litecoin (LTC), have seen their value decline. Analysts are now astonished by Avalanche’s success. Many traders are attracted to price surges in order to make quick profits. However, as with all cryptocurrency, price swings of large magnitude can happen at any time.