$AVAX Surges Amidst ETF Speculation & DeFi Growth
By Ruchi Sharma
In today’s news, we are discussing Avalanche (AVAX), a true all-rounder blockchain that has been gaining a lot of attention lately. Known for its competition with Ethereum, Avalanche stands out in terms of blockchain infrastructure, transaction speed, and gas fees. It also leads the way in decentralized applications (DApps) and DeFi. Not only that, but a major asset manager has applied for an ETF for Avalanche, and even U.S. President Donald Trump has shown interest in the network.
Currently ranked 18th in the top cryptocurrencies list, AVAX is priced around $19 as of March 18th. The market cap stands at $7.63 billion, with a circulating supply of 414.37 million AVAX tokens.
Let’s dive into the features and reasons why Avalanche and its token AVAX are becoming an investor favorite. What makes Avalanche better than Ethereum and why has it been attracting so much attention? Let’s break it down.
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Key Features of Avalanche:
Avalanche’s unique infrastructure consists of three interoperable blockchains:
- X-Chain: Used for creating and exchanging the native AVAX tokens and other assets, using the Avalanche consensus mechanism.
- C-Chain: Hosts smart contracts and decentralized applications, with its own Avalanche Virtual Machine (similar to Ethereum’s).
- P-Chain: Coordinates with validators, tracks subnets, and allows the creation of new subnets.
These features make Avalanche exceptionally fast, processing 4,500 transactions per second (TPS), compared to Ethereum’s 10-15 TPS. Gas fees on Avalanche are also incredibly low. Fees are paid in AVAX, and typically range between 75 and 225 nAVAX, which is very minimal.
Reasons for the Growing Popularity of AVAX:
- VanEck Filed for AVAX ETF: Global asset manager VanEck has applied for an ETF for AVAX, which has sparked optimism about its future.
- 700,000 Land Records Secured in India: In India’s Chhattisgarh state, 700,000 land records were digitized using Avalanche blockchain technology, demonstrating real-world use and adoption.
- Launch of Visa Crypto Card: Avalanche has partnered with Rain to launch a Visa crypto card, allowing users to spend AVAX and stablecoins in any store that accepts Visa. This card targets regions like Southeast Asia, Africa, and Latin America with underdeveloped banking infrastructure.
- Surge in Users and Trading Volume: In Q1 2025, Avalanche saw a 120% increase in new users, with around 45,000 new users joining in March alone. Its trading volume also jumped significantly, averaging $150 million daily in March.
- Trump’s Support: World Liberty Financial (WLFI), backed by President Trump, has bought $2 million worth of AVAX, adding to the growing interest.
Avalanche’s Top DeFi Protocols:
- Aave: The leading lending and borrowing protocol on Avalanche, with a TVL of $498.62 million.
- Benqi: A DeFi protocol focused on liquid staking and lending, with a TVL of $310.19 million.
- LFJ: A decentralized exchange with various DeFi functions, including token swaps and yield farming, with a TVL of $111.05 million.
Price Predictions for AVAX:
DigitalCoinPrice projects that by 2025, AVAX could reach an average price of $37.47, with a maximum of $40.97, indicating strong growth potential.
However, always remember to do your own research (DYOR) before making any investment decisions.
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