A new cryptocurrency is making headlines lately after taking over the much-loved memecoin Shiba Inu (SHIB). Avalanche (AVAX) catapulted into 11th place by market cap this weekend after a spectacular rally that saw it gain 36.6% since this time last Monday.
The rally appears to have been prompted by the announcement of a partnership deal with Deloitte, one of the famous ‘big four’ accounting firms. With the growth came a new all-time high for AVAX, as it hit $110 per coin. Now worth a cool $29 billion, AVAX has far surpassed SHIB, which is at only $23 billion after falling by almost 20% this week.
But what is the Avalanche cryptocurrency, and what does it do?
Many proponents of the Avalanche blockchain bill it as a faster, cheaper, and more eco-friendly alternative to Ethereum. With complex smart contract capabilities, high transaction speeds, and low fees, it certainly seems like a strong contender for the second-place crown.
Dr. Emin Gun Sirer founded the Avalanche blockchain system and developed it along with the team at Ava Labs. It launched last year with a powerful marketing campaign that helped push it quickly up the crypto listings. The extensive AVAX ecosystem now involves a wide range of applications and services, including wallets, NFT platforms, stablecoins, and DeFi apps. AVAX developers claim it’s the “fastest smart contracts platform in the blockchain industry, as measured by time-to-finality, and has the most validators securing its activity of any proof-of-stake protocol.”
Three Blockchains in One
Through the creation of a distributed triple-blockchain system, Avalanche aims to solve the scalability and congestion issues experienced by Ethereum. This triple-blockchain system can hypothetically process transactions 100 times faster than Ethereum because each task runs on its own dedicated chain: Exchange, Platform, and Contract.
It’s an ambitious project that includes several exciting features such as staking, cross-chain compatibility, subnets, and token creation. However, with strong competitors like Ethereum, Solana, and Polkadot all higher in the market cap listings, only time will tell if Avalanche can eventually become the first platform of choice for blockchain developers.