Why Avalanche is emerging as a Defi powerhouse in 2022
Originally it was Avalanche’s technology. Now the volume of projects is catching our eye.
With the explosive growth of the Defi blockchain space, it’s important to stay on top of the latest developments. One emerging player that is showing great potential is Avalanche (AVAX) – a decentralized platform built specifically for smart contracts. In this article, we will be going over what makes Avalanche a unique Defi innovator and a promising platform for any blockchain investor. AVAX is not just getting attention for it’s technology. The volume of new projects that are adopting and launching on the blockchain is also something that has been drawing our eye.
What is Avalanche?
Avalanche was founded in 2018 by Cornell professor and computer scientist Emin Gun Sirer. It was built by Ava Labs, made up of a world-class team of experts in economics, finance, computer science, and law. The Ava Labs team has collective experience from the likes of Google, Microsoft, Cisco, and NASA. They have also been involved in high-growth blockchain companies. The company operates in New York and Miami.
In 2021 Avalanche raised more than $230 million from the private sale of AVAX token. Then, in April 2022, they reportedly made a competitive move by raising $350 million at a $5.25 billion valuation according to Bloomberg.
Avalanche itself acts as a decentralized platform that is built specifically for smart contracts. It offers a number of unique features and benefits. They include high levels of security, scalability, speed, and user-friendliness, which helps it stand out among older and slower competitors.
The continued development of Avalanche is coordinated by the Avalanche Foundation. Also, in March 2022 the Avalanche Foundation announced the launch of the Avalanche Multiverse. It is an up to $290M (up to 4M AVAX) incentive program for the platform.
What sets Avalanche apart from other blockchain?
One of Avalanche’s top goals is to become the infrastructure of other crypto projects. It is competing with the likes of Ethereum and Solana. Its open-source platform is built for the scale of global finance. It also has a near-instant transaction finality. This has made AVAX attractive to many large scale investments.
Avalanche is also unique because it offers built-in governance and voting features. This paves the way for a truly decentralized ecosystem. One of the key features that sets AVAX apart from other blockchain platforms is its advanced security protocols and flexible programming language.
Some of the other building capabilities of Avalanche include:
- Launching an Ethereum dApp
- Running a validator
- Minting a token
- Integrating an exchange
AVAX’S advanced security protocols and flexible programming language allow developers to easily build and deploy sophisticated smart contracts. They can do this without worrying about safety or efficiency concerns. Additionally, Avalanche’s unique governance system ensures that the platform is continuously evolving to meet changing market demands.
AVAX & The growing power of multiverse platforms
There are nearly 200 projects currently building with Avalanche. Project types include Defi, nodes, dApps, and blockchain tools. The platform has become an expansive ecosystem that is making the most out of its blockchain capabilities.
For newer investors, here is a basic summary of how metaverse works in blockchain:
Virtual reality technology has allowed the possibility for new tech to incorporate the use of shared virtual worlds with blockchain technology. In these virtual worlds, buildings, avatars, and other virtual materials can be interacted with by users among one another. This created a surge of potential real world applications, including gaming, community platforming, and workplace tools.
With the launching of Avalanche Multiverse, the platform has only been showing continued growth when it comes to investment opportunities in the Defi space.
Avalanche Multiverse has a prime focus on accelerating the adoption and growth of its novel “subnet” functionality. This enables a rich ecosystem of scalable app-specific blockchains. Some of these new ecosystems include blockchain-enabled gaming, DeFi, and NFTs, among others.
The future of Avalanche and Defi
With Avalanche quickly gaining traction in the Defi space, it’s clear that this platform has what it takes to become a leading player in the industry, and it may very well overtake some of its big-time competitors by the end of 2022.
Whether you’re an investor looking for promising Defi projects or a developer looking for an innovative platform with advanced security features, Avalanche and its expanding ecosystem appears to offer a wealth of opportunities for those who are interested in this exciting new space.
Other blockchain opportunities abound as emerging tech continues to innovate the way we use Defi in our lives, and a great way to stay ahead of the curve is by joining the Cryptonairz Community.