According to a recent analysis by Standard Chartered, the Avalanche (AVAX) token is positioned for substantial growth over the next several years. The report suggests that its performance could outpace major cryptocurrencies like Bitcoin and Ethereum.
Geoff Kendrick, a leading analyst at the institution, emphasized Avalanche’s distinctive scaling methodology as a primary growth driver. Unlike many competing networks, Avalanche employs a subnet-based structure—essentially sidechains—that enhance its capacity and flexibility.
Kendrick’s coverage initiation sets specific price targets for AVAX: $55 by the end of 2025, $100 in 2026, $150 in 2027, $200 in 2028, and $250 by the conclusion of 2029. This represents a potential tenfold increase from current valuation levels.
Why Avalanche Stands Out
Avalanche’s architecture allows it to process transactions efficiently while maintaining decentralization. Its subnet model enables customized blockchain environments tailored for specific applications—from gaming to financial services.
A key milestone was a major upgrade in December 2024, which significantly reduced the cost of launching new subnets. This enhancement has already encouraged greater developer participation and increased network activity.
Moreover, the fact that a quarter of all active subnets are compatible with Etna—a significant interoperability standard—indicates growing ecosystem cohesion and potential for wider adoption.
Market Position and Growth Potential
With a market capitalization of approximately $9 billion, Avalanche currently ranks as the 15th-largest cryptocurrency. It also holds a top-ten position by total value locked (TVL) among blockchain networks, reflecting strong user engagement and trust.
Its relatively moderate market size means that even incremental improvements in technology or adoption could lead to disproportionately large gains. This positions AVAX favourably against more established assets like Bitcoin and Ethereum in terms of growth percentage.
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Investment and Development Backing
Prior to its December upgrade, the Avalanche Foundation completed a $250 million token sale. This round was led by prominent investment firms, signalling strong institutional confidence in the platform’s roadmap and technological vision.
Such substantial backing not only funds further development but also strengthens the network’s credibility and long-term viability in a competitive marketplace.
Frequently Asked Questions
What makes Avalanche different from Ethereum?
Avalanche uses a subnet structure to achieve scalability, allowing multiple customized blockchains to run in parallel. This contrasts with Ethereum’s single-chain model supplemented by Layer-2 solutions.
How does the subnet model benefit developers?
Subnets let developers create application-specific blockchains with their own rules and tokens. This offers greater flexibility, lower costs, and more control over user experience compared to building on general-purpose networks.
What was the impact of the December 2024 upgrade?
The upgrade drastically reduced the expense of launching a subnet, making it nearly free. This change has attracted more developers and increased the number of projects building on Avalanche.
Is Avalanche more scalable than Solana?
While both aim to achieve high throughput, they use different approaches. Avalanche relies on subnets for horizontal scaling, whereas Solana uses a single high-performance blockchain. Each has trade-offs in decentralization and flexibility.
What are the main risks for Avalanche’s growth?
Key challenges include competition from other scaling platforms, the need to continually attract developers, and overall market sentiment toward cryptocurrencies.
Can AVAX really outperform Bitcoin and Ethereum?
While past performance doesn’t guarantee future results, analysts point to Avalanche’s technological advantages and earlier growth stage as factors that could allow it to outpace larger cryptocurrencies in percentage terms.