Buying Avalanche (AVAX): value and trends

Why buy Avalanche (AVAX)?

Are you not sure whether to buy AVAX? This cryptocurrency is used to pay transaction fees on the Avalanche network, one of the most popular and widely utilised Layer 1 blockchains. Its main goal is to address the challenges faced by Ethereum, particularly issues related to scalability and high transaction costs during periods of high network activity.

Another reason to consider purchasing Avalanche (AVAX) is its consistent ranking among the top 10 most-used blockchains since 2021. Additionally, Avalanche allows for subnets, enabling each decentralised application to establish its environment and customise it to suit its needs.

Why should you consider buying AVAX? It offers a flexible and highly scalable ecosystem. Additionally, inflation is well-managed: transaction fees are burned, which helps maintain the token’s value.

In 2024, Avalanche experienced a significant wave of institutional adoption, primarily attributed to the launch of “institutional subnets.” These are private networks created by large companies for the tokenisation and exchange of real-world assets. One noteworthy example is the partnership with the financial services giant JPMorgan, which tested a tokenised government bond exchange on the Avalanche subnet. Furthermore, the collaboration with Amazon Web Services (AWS) continues to provide businesses with tools to build easily scalable blockchain infrastructures.

By 2025, AVAX regained attention due to significant advancements in Decentralised Physical Infrastructure Networks (DePIN). These subnets are dedicated to projects that bridge the physical world with blockchain technology, such as smart cities and supply chains. Additionally, in the gaming and metaverse sectors, Avalanche is establishing a notable presence, with new development studios selecting subnets as their foundational infrastructure.

What it is and how it came about

To encourage you to consider buying Avalanche (AVAX), it’s essential to understand what it is and how it functions. Avalanche is a decentralised finance protocol that emerged in 2020. Despite being relatively new, it is already a robust and competitive platform, often compared to Ethereum. 

Its key advantage lies in the flexibility it offers developers, businesses, and end users. Within its ecosystem, Avalanche enables the creation of smart contracts, tokens, NFTs, and even custom blockchains. Additionally, one of its primary objectives is to bridge the gap between the traditional economy and blockchain technology by facilitating the tokenisation of financial assets with clearly defined rules.

Emin Gün Sirer, a professor at Cornell University with over 20 years of experience in cryptography, is the driving force behind this project. He developed the Karma System, a protocol enabling users to transfer files directly without relying on a centralised server. This concept dates back to 2003 and is founded on a proof-of-work mechanism. More recently, Gün Sirer established Ava Labs in New York, which launched the Avalanche project in September 2020. That same month, the cryptocurrency gained traction and was listed by several major exchanges, leading to a surge in popularity and value within just a few months.

Over the years, Ava Labs has raised hundreds of millions of dollars from investors such as a16z, Polychain Capital, and Three Arrows Capital (before its collapse). These funds aim to develop a modern, high-performance blockchain infrastructure compatible with Ethereum, thanks to the implementation of the Ethereum Virtual Machine (EVM). Gün Sirer’s vision has consistently focused on creating a truly modular Layer 1 blockchain, allowing each project to configure its blockchain environment without compromise. Is this convincing enough for you to consider buying AVAX?