What is AVAX Coin Project? Will Avalanche compete in 2024?

The crypto world entered 2024 with enthusiasm and a strong increase in currencies on the first day of the year.
Today we will talk about one of the most important cryptocurrency projects on the scene currently, which is the Avalanche blockchain project.
So what is the story of the AVAX coin project? Let’s find out more!

AVAX coin project

AVAX coin is the base currency of the Avalanche blockchain. This means that the currency is used to pay gas fees on this network.
It is a network compatible with the Ethereum Virtual Machine, which means that it can be added to the MetaMask wallet and transfers can also be made between it and the Ethereum network easily.

This network was established in 2018. The project succeeded in obtaining funding estimated at $60 million during the years 2019 and 2020.
But what distinguishes the project is that it succeeded in obtaining much more funding than this after the end of the ICO Initial coin offering phase, in which currencies are sold in exchange for money to investors.

Until now, the project is still under development, but the network has been launched and can be used.
We must not forget that cryptocurrency projects are essentially experimental, which means that they are being built, developed, and updated all the time.

The Avalance blockchain is based on the proof of stake mechanism. This means increased centralization of the network, but in return, the network is much faster than the Ethereum network.
Gas fees on this network are somewhat higher than, for example, the Binance network, but much lower than Ethereum fees.

AVAX coin ecosystem project

The AVAX coin project is a first-class project. This means that the main purpose of the project is to provide sufficient infrastructure to build and develop decentralized protocols and various projects.
This means that it is important to take a look at the AVAX ecosystem to determine whether it is active or not.

The Avalanche blockchain ecosystem is expected to rebound strongly. The price of the AVAX coin increased strongly in the second half of 2023.
Through this, we can expect an increase in the prices of projects built on the network. This happened with Solana, it happened with Ethereum, and it will undoubtedly happen with Avalanche as well.

Recently, powerful games have begun to appear on the network and are being developed. Blockchain games are expected to be among the biggest winners in the upcoming bull market.
Therefore, many experts are seeking to invest in these games from now on to benefit from their price increase.
One of the most important nominations is the game Mega Weapon, which gained strong popularity on the AVAX coin project system.

Fundamental analysis of the Avalanche blockchain

As we can see, the ecosystem is very rich and has grown very large recently.
We can notice that the network growth increases significantly. Note in the chart below the increase during the year 2023.

Note also that the TVL doubled during 2023. But we must not forget that it completely collapsed in 2022.

Finally, we must not forget that the number of currency holders has increased. This is a good thing since this increases the decentralization of the project.
The more smallholders of the coin and the fewer the number of giant wallets, the better.

The project’s Tokenomics

The current price of the currency is $40 and the market value is approximately $14.8 billion. This puts it in the top ten cryptocurrency projects currently.
This means that the project is huge and therefore we do not expect crazy increases in it in the coming period.

Upon analysis of Tokenomics, it becomes clear that the total stock of currencies is about 720 million currencies, most of which have been burned, and therefore what is currently remaining is 434 million currencies, of which 366 million currencies are currently on the market.
This means that the inflation rate is approximately 25%, but it will be distributed over several years, and therefore the annual inflation level is very low, which is a good thing. Currency inflation will continue until 2030.

It is important to also know the distribution of currencies to investors so that we know how central the project is.
Below you can see this distribution and it is considered a somewhat fair distribution.
But notice how 50% of the coins are in the form of stake prizes, and this means that the project may face a problem.
At the end of these awards, how will node computer operators receive rewards for securing the network and completing operations on the proof-of-stake mechanism?

Normally here the team would expect transfer fees to rise but for this to happen the adoption of the network would have to increase significantly.

AVAX coin project forecast in 2024

AVAX has started 2024 with a strong price increase. Many experts expect the price to increase further in 2024.
This is due to the increased interest in this currency, which may compete for a high position during the upcoming bull market.
The project team has developed the network a lot over the past year. This has attracted a lot of new projects and protocols that have begun to build on the network.

For this reason, we expect interest in AVAX to increase in 2024.

AVAX coin price analysis

If we look at the weekly frame of the AVAX coin, we will notice that the currency has been on an upward trend for a while.
The currency began to rise in October 2023 and until now it is still in this rising trend.

Notice how the coin has also crossed the August 2022 price barrier at which most altcoins began to completely collapse.
AVAX is now well above this barrier, and therefore we expect the currency to test the $100 barrier during the year 2024.
If the currency succeeds in closing the weekly above this barrier, the resistance at 120 and 145 will be the last before a new price launch to form a higher top in the bull market.

But this will also depend on the rise of the market, Bitcoin, and Ethereum in 2024. This is due to Avalanche’s dependence on Bitcoin and Ethereum.
Since the project is huge in terms of market value, this means that the currency is always dependent on Bitcoin.
Since the project is compatible with the Ethereum virtual machine, this means that it will increase when the price of Ethereum also increases.