Investors predict AVAX’s price reduction to boost cryptocurrency market growth because of its restricted supply and creative features. Avalanche inventor Emin Gun Sirer contrasted the restricted 21 million Bitcoin supply to a future AVAX price hike, which aroused much speculation. Sirer contrasts Ethereum’s unlimited supply with AVAX’s 715.74 million and deflationary transaction fee burning. This scarcity-driven strategy boosts investor confidence, making it a powerful digital asset competitor and raising anticipation for a price surge.
Scarcity Strategy of Avalanche
AVAX Price Drop Labs founder and CEO Emin Gun Sirer discussed Avalanche’s limited supply on X on December 25. He compared Bitcoin’s 21 million limit. The Avalanche token has a cap of 715.74 million coins, while Ethereum has no limit and 120 million tokens. With this shortfall, Avalanche’s burning of all transaction fees raises concerns regarding AVAX’s long-term price. Sirer thinks Bitcoin’s value comes from its scarcity, which has attracted long-term investors and raised deflationary expectations.
With a similar method, Avalanche hopes to become a valuable digital asset with significant value-accrual dynamics. Deflation may promote capped-supply token interest. The Avalanche token’s scarcity and strong ecology distinguish it from Bitcoin. These features may attract long-term value-seeking investors to Avalanche, increasing its value. This is especially true since Ethereum and other inflationary assets dominate the market.
2024 AVAX Price Prediction
According to the most current Avalanche price chart, the cryptocurrency slid 2% to $40.973. Its 24-hour high and low are $41.84 and $40.08, respectively. With a trading volume of $453 million, the token’s market capitalization is $16.5 billion. Despite the recent decrease, its rank and market capitalization suggests persistence and sustained investor interest.
According to the analyst, there is bullish momentum for the cryptocurrency ahead based on the existing price action. The expert predicted a strong cryptocurrency future, citing $34.71 as a key support level. AVAX may soon reach $64.04 or $79.77. The Avalanche 9000 upgrade was also issued. This aims to scale and lower network launch costs. Increased network activity from the upgrade may raise AVAX prices.
Summary
The latest AVAX price reduction has investors optimistic. According to founder Emin Gun Sirer, Avalanche’s scarcity strategy makes it a potential cryptocurrency competitor. Avalanche emulates Bitcoin’s deflation by burning transaction fees and capping the 715.74 million AVAX token supply. Previous value-creation assistance. Even though the price drop may worry you, market demand is high. AVAX Price Drop is expected to rise. Investor faith in Avalanche’s future price increase is predicted to rise owing to updates like Avalanche 9000, which will boost scalability and make it a desirable digital currency asset.
