Anna Bliokh/E+ via Getty Images
Avalanche Network (AVAX-USD) is the Directed Acyclic Graph, or DAG, technology that is unique from other blockchains. AVAX’s DAG technology is possibly more efficient than other blockchains. This increased efficiency may make AVAX a disruptor technology among the disruptive category of blockchain technologies. Avalanche supports its corresponding cryptocurrency AVAX-USD. Avalanche’s DAG technology may be disruptive to the blockchain technology space due to its ability to combine speed, utility, security, and accuracy at a superior level to other blockchains.
New York-based Ava Labs has provided foundational investment and resources for the growth and development of AVAX.
Source: Bitcoin News
The graphic above is from this impressive article that explains why the Federal Emergency Management Agency, or FEMA, and other state governments are implementing Avalanche due to the disruptive abilities of this technology to increase efficiencies.
Source: YouTube InvestAnswers
Here is the Avalanche Network website. The screenshot posted below communicates the import of Avalanche and why it may be possible to see continued adoption of this disruptive technology globally. The fact that the U.S. FEMA and U.S. state governments are implementing this technology is likely to attract the attention of others in the public and private sectors globally. The growth of this DAG network could accelerate. Already, Avalanche’s technology has over 300 public and private projects launched on its Network in the last 12 months.
On 7/12/21, AVAX was the 46th largest crypto by market cap. At the time of this writing on 11/19/21, AVAX has risen to become the 12th largest crypto by market cap, right behind Dogecoin (DOGE-USD) and SHIBA INU (SHIB-USD). Please note on the graphic below that AVAX is at .9033% market share of the total cryptocurrency market cap, which may indicate that this crypto continues to gain market cap with much room for future growth.
Since the market caps of the 11 cryptos ahead of AVAX on the chart below are also growing rapidly, AVAX could achieve strong percentage growth in price without having to break into the top 10 cryptos. However, the degree of public and private sector acceptance for this disruptive technology could drive AVAX to much higher levels of investment and usage. AVAX could continue its rapid ascent to become one of the top 10 largest cryptos by market cap in 2022.
AVAX is an eco-friendly Proof of Stake cryptocurrency, or PoS protocol. PoS protocols are far more energy-efficient and environmentally cleaner than the Proof of Work, or PoW protocols, that are mining crypto like Bitcoin. Avalanche’s PoS protocol status is increasingly relevant as the inevitable clash of ESG and crypto PoW mining continues to move towards a potential climax. Even crypto miners using renewable energy are becoming objectionable as critics point out this energy could be reallocated to reduce fossil fuel energy consumption. PoS protocols use a fraction of the energy consumed by PoW protocols in their energy-intensive mining operations.
AVAX has been trading higher since the landmark Deloitte deal has communicated the degree to which the public and private sector is embracing this next generation of technology. This CoinDesk article provides a look at the current, rising status of Avalanche. With some amount of vision for the future, traders may be able to speculate that the growth for this technology may continue.
Avalanche is a smart contracts platform, which uses the DAG unique consensus mechanism that has 3-second settlement time. That time is way quicker than Visa (V), so this settlement technology is disruptive and super fast.
Mike Novogratz’s Galaxy Digital, Bitmain, and other major crypto backers are early investors for Avalanche. This technology has attracted over 300 new contracts with noteworthy public and private entities in the last 12 months.
Major U.S. government agencies are adopting this technology, as well as U.S. state governments. The private sector is also adopting this technology at an accelerating rate. Their DAG consensus mechanism makes Avalanche unique, and this technology may be superior to the traditional blockchains that other cryptocurrencies are built upon. Avalanche’s DAG is a unique consensus mechanism that may be a disruptive technology within the disruptive blockchain space. Avalanche may be a disruptor among disruptors.
Our Trader’s Idea Flow community has traded both Bitcoin (BTC-USD) and Ether (ETH-USD) during recent years. This is the first time that I have issued a Trade Alert for a newer, up and coming cryptocurrency. Avalanche seems to have achieved a higher level of credibility and legitimacy by the quality of the marketplace that is adopting this technology, and the major names in the crypto space that are backers already. This trade in Avalanche may have much more room to run in the long term.
Traders should expect the high risk that comes with the short-term volatility that is characteristic of the cryptocurrency space. Caution and risk management are appropriate in this space.
It may still be relatively early in Avalanche’s long-term growth, although the crypto has traded considerably higher by over a staggering 3,000% in the last year. By nature, volatility is a part of the crypto space. Volatility should be expected for Avalanche’s AVAX as well. This is a high risk/reward trade. Risk management techniques should be applied.
I used my Coinbase account to enter this long position in AVAX. I am long the Avalanche Network’s cryptocurrency, ticker symbol AVAX-USD.
Members of our Trader’s Idea Flow community always receive our trading ideas and updates first. Traders know that timing is everything. Receiving information early and being prepared ahead of the competition is valuable. Please feel welcome to free trial our marketplace service, Trader’s Idea Flow. Just one successful trading idea can cover the cost for many years of the very affordable subscription price.
This article was written by
Disclosure: I/we have a beneficial long position in the shares of AVAX-USD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.