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- The Avalanche founder explains how the platform holds a competitive edge over other L1s in addressing the needs of the DeFi market.
- He stresses on the native “subnet” technology that can drive exponential growth.
The crypto market registered a strong recovery over the last week after the Fed’s official announcement of an interest rate hike. Ethereum’s Layer-1 competitor Avalanche (AVAX) has turned out to be one of the lead performers among altcoins.
On the weekly chart, Avalanche’s native crypto AVAX has registered 33 percent gains with its price moving all the way beyond $90. As of press time, AVAX is trading at $87 with a market cap of $23.3 billion. Emin gün sirer, founder and CEO of AVAX is confident that the platform is ready for exponential growth this year.
Avalanche being a Proof-of-Stake (PoS) platform is already competing strongly with Ethereum 1.0. Thus, it hosts a range of smart contracts, DApps, and subnets. In his Twitter thread, the AVAX founder explains:
Its (Avalanche’s) token distribution is solid. It has a capped supply of 720M 360M tokens were minted at launch and another 360M will be released over 10 years.
From the total AVAX distribution, a staggering 50 percent has been just offered as staking rewards. The founder also explains that the Avalanche blockchain is extremely fast, cheap and scalable with its native subnet technology.
As he explains: “Subnets are massive. Subnets are essentially mini blockchains that make up a larger chain, drastically speeding things up. Through subnets, anyone can create a custom blockchains to suit the needs of their apps”.
This has further attracted many developers to build on the platform. The founder also touts the massive adoption of Avalanche as the reason behind its success.
Focusing on Decentralized Finance (DeFi)
The growth of decentralized finance (DeFi) applications in the crypto ecosystem has been exponential. Thus, if you have to compete with Ethereum, the L1 competitors need to focus on DeFi and Avalanche is doing exactly that.
The Avalanche blockchain is superfast and can conduct 6500 transactions per second. This makes it one of the quickest payment platforms and an alternative to Ethereum’s network congestion issues. The Avalanche founder said that this is the reason many DeFi protocols are building on AVAX.
A lot of companies and institutes are choosing #AVAX. Subnet tech enables each individual subnet to have its own set of rules. Hence, different institutes can build apps based on their needs, requirements and rules.
AVAX will be having a lifetime fixed supply of 720 million. As we reported last month, crypto investments products have witnessed heavy inflows in Avalanche protocol. Additionally, the Avalanche Foundation recently launched a $290 million accelerator incentive program.
Read More: Avalanche Foundation launches $290M accelerator incentive program, AVAX jumps 10%
The Avalanche Multiverse Fund will focus on supporting new ecosystems including blockchain-enabled gaming, DeFi, NFTs, and institutional use cases. It also seeks to boost the adoption and growth of the platform’s “subnet” functionality.
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