While Solana (SOL) price is rapidly rising, AVAX Coin has lagged behind and failed to recover as expected. There are several reasons for this. We have previously mentioned the selling pressure caused by token inflation. However, there is a gradual recovery in price, albeit slow. So why is Hitesh Malviya so optimistic?
The Future of AVAX Coin
Crypto analyst Hitesh Malviya believes that the increasing AVAX Coin price is related to GameFi. He also highlighted that the newly launched GameFi subnets are an important factor in promoting the adoption of AVAX. Avalanche allows the creation of subnet protocols under its main network, which is seen as preparation for the multi-chain world with a structure similar to a spider web.
Malviya revealed that Avalanche gaming subnets such as DFK and DEXALOT have already surpassed Avalanche C Chain in terms of transaction volume. This has positively affected the amount of AVAX Coin burned. Why is Ethereum the largest altcoin by market value? Because the biggest players in the ecosystem use it as the smart contract platform, which makes Ethereum more valuable as the popularity of applications on the network increases.
For Ethereum, Avalanche, and other layer1 solutions, the most valuable thing is having popular applications on their networks.
According to Malviya, the steady increase in AVAX Coin price may continue with the upcoming launch of new gaming subnets Shrapnel and Loco Legends.
AVAX Coin Price Predictions
The new gaming networks will multiply the value of the Avalanche network. However, the best way to eliminate the ready supply for sale is staking. The Avalanche community has achieved great success in this area as well. Recently, 116 new validators were added to the Avalanche Network. With a minimum entry requirement of 2000 AVAX for each validator, this means that 232,000 AVAX has been staked.
A total of 720 million dollars worth of AVAX Coin has been staked, which is a great method to combat inflation. Moreover, it reflects the community’s long-term optimism about the price. In this environment, we have witnessed the AVAX Coin price testing the $20 region.
Although the price has temporarily retreated to the $17 region, in the scenario where $20 is surpassed, the long-term resistance level of $22.8 can also be broken. In addition, closing prices will help to see historical highs between $30 and $53 again. Of course, the upcoming major protocol upgrade at the end of the month can have an impact on short-term price movements, and investors should not overlook this.
