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Avalanche (AVAX) Drops to $100 After the Christmas Crash, but the Price Starts Recovering

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Avalanche (AVAX) is a layer-one blockchain that works as a platform meant to host decentralized applications and custom blockchain networks. As such, it is another major rival to Ethereum’s blockchain and another blockchain that developers started to turn to after giving up on Ethereum’s network due to its high fees.

As a more scalable blockchain with lower fees and faster transaction processing, Avalanche is a lot more scalable, capable of processing 6,500 transactions per second, compared to Ethereum’s 13. With the ability to process more, Avalanche reduces the waiting time for transactions, so there is no need to increase fees in order for the transactions to be more attractive to miners, which makes the average transaction fee rather low.

This led more people to choose Avalanche, and as a result, its native cryptocurrency saw more use, which, in turn, allowed its price to skyrocket from $4.1 at its launch, to $135, which was its ATH. While its price is lower now due to a recent price crash, AVAX definitely has the potential to surge back up and go even higher.

Avalanche in 2020

Avalanche was launched back in 2020, with its token emerging in the second half of September. At the time of its launch, its price was $4.1, and immediately after launch, it surged to $4.7. After the hype had passed, the coin saw a significant price correction that took it down to $3.4, only for it to surge again, this time to $4.4.

From this point forward, AVAX price entered a bearish trend, and its value kept decreasing for the rest of the year. While there were multiple ups and downs during this time, the overall trend was bearish, and it resulted in the coin’s drop to $2.9 at the end of the year.

Avalanche in 2020 Dec 31

Fortunately, things took a major turn for the project in 2021, and its price soon enough skyrocketed higher than ever.

Avalanche in 2021

While Avalanche price did see the end of last year at its lowest point, things changed immediately as 2021 started.

Its price skyrocketed, and barely two weeks later, it reached the price of $13. This level proved to be a rather strong resistance, which kept the price from progressing further for the next two weeks. However, AVAX experienced a second wind as soon as February started, skyrocketing rather rapidly until it reached the height of $55.

Naturally, whenever a coin experiences such a rapid surge, it is bound to see a correction, and this happened immediately after the coin hit the $55 level. Its price kept going down over the next several weeks, until it dropped to $23 on February 28th.

From that point forward, the AVAX price was determined to breach the resistance at $40, and it spent several months trying to do it. From early March until the second half of May, AVAX has been trying to breach this resistance several times. Three times it even came close to doing it, but unfortunately, it was too early for it to succeed.

Around mid-May, however, things changed, and not for the better. Soon after Bitcoin made its ATH at $64,000, Elon Musk, the CEO of Tesla, announced that his company will stop accepting Bitcoin payments for its electric cars. He noted that there are too many environmental concerns regarding Bitcoin and that the company cannot continue to encourage its use by accepting it.

Avalanche in 2021 Dec 31

Since the whole idea behind Tesla is to switch to electric cars in order to preserve the environment, this was an understandable move. However, immediately after it, the crypto industry experienced a major price crash that cut the value of most coins in half.

AVAX itself saw a price drop from $40 to $15 in the immediate aftermath, and then during the summer, its value kept going down until it sank to its bottom at $10. In other words, AXAX lost more than most — up to 75% of its value between mid-May and mid-July.

After that, however, things started taking a turn for the better, and the coin started seeing a steady increase that became more and more rapid as time went by. Avalanche price was back at 20 by mid-August, and from that point, it skyrocketed to $55 only a week later.

After a brief correction to $40, the coin surged again in early September, breaching one resistance after another. While some of them did cause more smaller corrections, the coin eventually reached $76 on September 23rd. This was followed by a prolonged correction which took AVAX to $55, which it reached on October 12th.

After that, a brand new rally commenced, and this one took the coin higher than ever before. Starting on October 18th, Avalanche started climbing higher and higher, until it reached an all-time high of $135 on November 22nd. This is still its record to this day. However, like the last time when a rapid surge took over, the coin corrected once again, reaching a bottom at $80 on December 13th. For the next seven days, the coin was skyrocketing again, until it climbed back up to $123, only to correct to $100 in a so-called Christmas crash.

Finally, this leads us to today, December 31st, 2021, when AVAX price started to recover one more time, and at the time of writing, it sits at $106.34 after growing by 1.22% in the last 24 hours.

Conclusion

Avalanche price has been growing rapidly on multiple occasions this year, showing that there is great potential for surging higher up, and also that there is demand for the coin. With more development within its network, the coin will undoubtedly receive greater use cases, and its demand would keep going up. What that means for AVAX, and how high it can ultimately go, remains to be seen in 2022 and beyond.

To learn more about this token visit our Investing in Avalanche guide.

Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.

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