5 reasons Avalanche (AVAX) to become king of smart contracts is imminent
Popular crypto channel Altcoin Buzz shares with their subscribers 5 reasons Avalanche (AVAX) would outperform Ethereum, Solana, Cardano, etc. to become the king of smart contracts.
Reason 1: A platform of platform
According to the crypto KOL, Avalanche lets anyone create tailor-made applications, which benefits from the revolutionary Avalanche consensus.
“It’s similar to platforms such as Polkadot and Cosmos but with higher throughput, transaction finality, and capability to scale to millions of validators with impacting its network decentralization.”
The trader also highlights that the key differentiator between Avalanche and other competitors is that it is the first smart contracts platform that confirms transactions in under one second.
Reason 2: Consensus mechanism
Another interesting characteristic that sets Avalanche apart from others is the benefits of Nakamoto consensus of robustness, scalability, and decentralization. Importantly, it also combines all the benefits of classical consensus of speed, quick finality, and energy efficiency.
“Together, that made Avalanche consensus scalable, robust, highly decentralized, low latency, high throughput, lightweight, green, sustainable and resilient to attack,”
Reason 3: Ethereum compatibility and ETH bridge
Avalanche is a smart contract chain that is 100% compatible with the Ethereum Virtual Machine. As the trader says, this means that anyone can deploy smart contracts in Ethereum-related languages such as Solidity in Avalanche.
There is also an Avalanche-Ethereum Bridge can be used to transfer ERC20 tokens from Ethereum to Avalanche’s C-Chain and vice versa. Up to now, the analyst points out that there are over 3 billion assets worth have already been bridged.
Reason 4: Tokenomics and Burn Model
According to the trader, Avalanche has a fixed capped supply of 720 million.
“This creates scarcity and ensures AVAX won’t suffer from the continuous dilution through inflation like other staking coins.”
Besides, the network also has a burn mechanism in place. All the transaction fees are paid in AVAX, which are then burned to reduce the total supply.
Reason 5: AVAX Staking
The analyst highlights the factor the makes AVAX a suitable long-term crypto investment is a combination of staking and burn that creates a super supply squeeze.
At the time of the video, over 243 million AVAX, which is 61% of the current supply of AVAX tokens, are currently being staked. Besides, by staking AVAX, traders can receive a 9.94% APY.