Avalanche is an open-source blockchain ecosystem that supports smart contract functionality and can run decentralized applications (dApps). AVAX is the native cryptocurrency of the Avalanche ecosystem.

Avalanche claims to have the fastest transaction finality rate in the market and can offer the highest throughput using the power of subnets. The blockchain is also eco-friendly, consuming extremely low levels of power to operate and conduct transactions.

As a result, Avalanche is an attractive platform for developers looking to create low-cost, highly scalable dApps. It is also EVM compatible, letting developers launch Solidity-based Ethereum dApps on its network. These dApps can enjoy Ethereum compatibility but would be far more scalable and efficient.

Avalanche (AVAX) is one of the top cryptocurrencies by market cap and is a popular choice to include in portfolios of crypto traders worldwide. The AVAX token has made significant gains since late 2021 after Avalanche developers announced liquidity incentive programs for developers to build dApps and expand the blockchains ecosystem.

Avalanche is a decentralized payments network and smart contract platform built on blockchain technology. Its mainnet launch took place on 21 September 2020 and since then, it has become a popular platform for launching decentralized finance applications.

Unlike most of its peers, the Avalanche ecosystem is made up of three built-in blockchains:

Exchange Chain or X-Chain

The X-Chain supports the creation and trading of digital assets, including the AVAX crypto. Transactions take place on this chain, which also lets users create new digital assets within the Avalanche ecosystem.

Platform Chain or P-Chain

The P-Chain coordinates validators and contains the metadata. It monitors existing and active subnets. It is also the blockchain where new subnets get created, add validators to subnets and create new blockchains.

Contract Chain or C-Chain

The C-Chain is where smart contracts are created and deployed. It is an EVM instance powered by Avalanche.

The Avalanche consensus protocol leverages repeated sub-sampled voting. This model makes the ecosystem scalable, robust and extremely decentralized. In addition, the Avalanche network enjoys high throughput, low latency and low energy consumption even as it offers security against 51% attacks. Both the P-Chain and the C-Chain implement the Snowman consensus protocol, which is powered by the Avalanche consensus algorithm.

Transactions are verified by validators through voting among a randomly selected subset of validators in the network on accepting or rejecting them. Once a sufficiently large number of validators vote to accept the transaction, a new block is created.

AVAX, the native token of Avalanche, is the cryptocurrency used to pay transaction fees within the blockchain ecosystem. In addition, it is also used for staking to strengthen the overall Avalanche network and make it resilient against attacks or outages.

The multiple subnets created and operating inside Avalanche also transact with each other using the AVAX token. It helps serve as a basic unit of account in their interactions.

The AVAX crypto is also one of the top digital assets by market cap in the cryptocurrency market, owing to the rising adoption of Avalanche by dApps. It is frequently used as a store of value and for trading against other financial instruments in a bid to grow trading portfolios.

Avalanches native token AVAX can also be used as a means to make digital payment transfers. Owing to the high throughput and low transaction fees, AVAX is an efficient cryptocurrency to use when transferring payments to users anywhere in the world.

Avalanches AVAX was one of the biggest gainers in the crypto market during 2021. From an all-time low of $2.79 on 31 December 2020, the AVAX price surged to a record high of $146.22 in less than a year, by 21 November 2021.

Although the Avalanche price did slide lower from those highs amid profit taking and a bearish market sentiment towards digital assets shortly thereafter, AVAX remains one of the top cryptocurrencies by market cap, trading volume and liquidity.

The AVAX price could reach new highs as the adoption of its ecosystem amid dApp developers continues to grow. There is a very solid opportunity for this as ETH gas fees and network congestion issues plague the Ethereum blockchain, which could further encourage investors to buy Avalanche.

Notwithstanding Ethereums woes, the Avalanche blockchain ecosystem offers a low-cost and far more scalable and efficient platform for the deployment of decentralized apps. Its key strengths can make it a popular platform for Web 3.0 apps in the coming months and years.

The AVAX price can also surge as long as investors bullish attitude towards digital assets remains strong. The increasing interest of institutional investors can also support the Avalanche price and market cap.

AVAX price can strengthen further if the Avalanche platform announces more partnerships with mainstream businesses across various sectors. The companys partnership with Deloitte was one such instance from early 2022 which boosted investor confidence in the AVAX crypto.

Staking can offer an exciting avenue to generate passive income for holders of AVAX tokens. The process helps make the Avalanche network more resilient and efficient while rewarding its token holders.

To become a validator on Avalanche, a user must stake a minimum of 2,000 AVAX tokens. You also have the option to stake a minimum of 25 AVAX to become a delegator within the network. The duration of staking varies from 2 weeks to 1 year.

Apart from staking directly on the Avalanche platform, you can also opt to stake AVAX via DeFi protocols that list the cryptocurrency among their offerings.

Avalanche is known as an Ethereum killer as it offers a more affordable yet efficient platform for dApps than the original blockchain for decentralized apps. Here are some of the key differences between Avalanche and Ethereum:

Versatility

Avalanche is just as versatile as Ethereum although its potential remains largely unexplored in several avenues. While the Avalanche network has made its mark in the DeFi space, dApps in other key categories, especially gaming and NFTs are yet to gather steam on the Avalanche network so far.

Regulatory Perspective

Avalanche supports the development of compliant dApps, which are applications with more complex rules. This is sorely lacking in Ethereum at present, making it challenging to develop dApps for use in sectors that are highly regulated. On the other hand, Avalanche offers a platform where developers have visibility into the trading, sharing and hosting of an asset permanently.

The Avalanche Bridge (AB) supports interoperability between Avalanche and Ethereum ecosystems. Users can transfer Ethereum-based ERC-20 tokens into the Avalanche C-Chain and vice versa with the help of AB.

A transfer to Ethereum using the AB can take anywhere between 10 and 15 minutes. Users can conduct Avalanche transactions using this feature in a matter of seconds.

The Avalanche Bridge charges a transaction fee when transferring digital assets from Avalanche and into Ethereum. While native ETH and BTC are not supported by the bridge, users can transfer the wrapped version of these crypto assets, WETH and WBTC using the AB.

You can convert ETH to AVAX on MetaMask using the official Avalanche bridge. Follow these steps:

1. Create a MetaMask account if you don't have one already.

2. Add ETH funds to your MetaMask wallet.

3. Go to the Avalanche bridge and connect your MetaMask wallet.

4. Check the current Avalanche price and enter the amount of ETH you want to convert to AVAX.

5. Review the transaction details and click on Transfer.

6. Once the transaction is confirmed, your MetaMask account will be funded with AVAX tokens.

7. If you swap more than $75 worth of ETH, you may be eligible for a free AVAX airdrop to help cover gas fees.