With the growing innovation across the decentralized finance (DeFi) industry, developers are already exploring better Layer-1 solutions that would be preferred to build respective decentralized apps (dApps).

Interestingly, Avalanche sits as the only Defi platform capable to make transactions in just one second, hence investing in it is appealing as it is now seen as an alternative to Ethereum.

What Is Avalanche?

Avalanche can be described as a Layer-1 decentralized blockchain platform, which translates to its efficiency in hosting other cryptocurrencies and their blockchain protocols on its network. Also, multiple blockchain networks can be connected to the Avalanche network, thereby, enabling users to access the platforms on popular blockchains.

As native crypto used to initiate payments and rewards, Avalanche’s blockchain operates under the proof-of-stake (PoS) protocol which helps in speedy transactions. Avalanche is ranked 9th among the cryptocurrencies with a market cap of about $28 billion as of the time of writing this article.

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Is Avalanche A Good Investment?

It is safe to infer that early investors of Avalanche are smiling at the bank today. This is because an investment of $1,000 at the beginning of 2021 is now valued at over $35,000.

This doesn’t write off those that took the investment decision at the halfway of the year, as they are also doing well with the profit margin they are enjoying. It should be noted that Avalanche has had a delivery of return of investment (ROI) of approximately 11x since July.

Nonetheless, mulling and actualizing Avalanche investment is not too late as there is still about 90% gain to enjoy.

Frameworks Behind Avalanche Success

It is captivating that Avalanche has been able to break through amongst over two cryptocurrencies in the crypto space. How did it achieve this? Its blockchain architecture.

Similar to Ethereum, Avalanche supports smart contracts. But there are nuances of speed and low transaction fees that make Avalanche have an edge over Ethereum. These merits were sustained by three Avalanche interoperable blockchains.

  • Exchange Chain (X-Chain): supports the development and trading of the native Avalanche tokens.
  • Contract Chain (C-Chain): facilitates the development of decentralized apps using smart contracts.
  • Platform Chain (P-Chain): supervises different validators that verify transactions.
    So with the triple-blockchain design, over 4,500 transactions can be made in a second on Avalanche.


As the Defi industry continues to gain traction, long-term positive sentiment in the crypto market will take its turns. Avalanche will always operate in keeping its head above the torrents of competition in the crypto space, but it leaves us with difficulty in ascertaining the future market structure of Avalanche, owing to the volatile nature of the crypto market.