Avalanche (AVAX) has been highlighted by Standard Chartered in a recent analysis, predicting significant value growth in the coming years despite its recent price drop. Geoff Kendrick, an expert from the bank, forecasts that AVAX’s current price might reach nearly ten times its present value. The innovative subnet scaling method developed by the Avalanche network and the recent Etna upgrade are cited as key drivers for this prediction.
High Price Expectations for AVAX
The analysis forecasts that AVAX could rise to approximately $55 by the end of 2025, with a longer-term projection reaching the $250 range by the end of 2029. It emphasizes that the subnet scaling technology of Avalanche will enhance its scalability, providing a competitive edge in the industry. The Etna upgrade particularly lowers developer costs, significantly increasing the platform’s attractiveness.
Currently, AVAX is exhibiting a surprising trend with a daily drop of 8% and an 18% weekly decline. However, long-term expectations suggest that this current downturn may be temporary. Analysts stress the need for investors to monitor the volatile market structure closely.
Institutional Investors Take Notice
The increasing interest from institutional investors is another factor that could elevate the project’s value, according to the analysis. The recent application for an Avalanche-focused fund by VanEck, a major U.S.-based asset management firm, is seen as a significant confidence indicator in the market. Such institutional moves are expected to bolster investor confidence in the cryptocurrency market.
Attention is also drawn to developers fleeing high transaction costs on the Ethereum $1,561 network, opting for AVAX instead. The compatibility and more favorable transaction fees provided by Avalanche are cited as primary reasons for this choice. However, some experts argue that transaction fees on the AVAX network are still slightly higher compared to other alternatives.
Critical Points for Investors
The report from Standard Chartered advises AVAX investors to closely monitor technological updates and market developments. Key factors for the project’s future success include infrastructure innovations, institutional support, and vigilant observation of market fluctuations. It is highlighted that these factors are crucial in making informed investment decisions.
Avalanche (AVAX) is noted to possess significant upward price potential in the coming years. Institutional interest and technological advancements are fundamental factors supporting this rise. Experts recommend that investors stay updated on developments related to AVAX.