AVAX is the native token of the Avalanche network. The ICO took place in 2020 and brought in $42 million. AVAX’s total supply is limited to 720 million.
The token serves as the common medium of exchange in the ecosystem. The cryptocurrency is used as a currency in the Avalanche system. AVAX staking secures the Avalanche and provides rewards to stakers.
Avalanche is a platform for decentralized applications and custom blockchain networks. This blockchain is trying to outperform Ethereum and take its place. To be honest, Avalanche has a chance of doing that. The network supports up to 6,500 transactions/second without affecting scalability. It is supposed to contribute to the increase in decentralization at scale to prevent high gas fees.
The Avalanche network is unique. It has three individual blockchains, each of them has its own purpose. This differs greatly from the Bitcoin and Ethereum approaches. The Exchange Chain allows the creation and exchange of AVAX tokens and other assets. The Contract Chain is used to host smart contracts and decentralized applications. The Platform Chain is applied to coordinate validators of the network, track active subnets, and enable new subnets’ creation.
Avalanche is among the top-15 cryptocurrencies by market capitalization, according to CoinMarketCap. Moreover, its price is high compared to some other tokens. Analysts believe that AVAX has more chances to skyrocket than BTC. If the Avalanche network develops and comes closer to unseating Ethereum, the native token will move up.
The AVAX/USD pair includes the US dollar. The USD is a well-known fiat currency. Although it’s associated with the USA, the US dollar is a legal tender in Ecuador, El Salvador, Palau, the Marshall Islands, Micronesia, Zimbabwe, and East Timor.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
