Big technology and finance companies can make deals with various altcoin projects to use in their fields. In this regard, the host of the popular YouTube channel Coin Bureau says institutional interest has increased for Avalanche (AVAX) amid a bear market that he warned could take another two years.
Analyst updates his views on Etherem rival Avalanche(AVAX)
The closely followed crypto analyst known as Guy gave his 2.06 million YouTube subscribers a look at AVAX’s massive selling pressure and the state of the market in a new video. He says he’s in good shape. In part of the video, the analyst says:
In addition to these depressing macro factors, approximately 25 million additional AVAX have entered circulation since the start of the year, consistent with Avalanche’s aggressive takeover program. Now assuming the average AVAX price is around $50, that means AVAX has seen selling pressure of up to $1.25 billion over the past few months. I’m also sure there’s other significant selling pressure, and that’s because there hasn’t been a shortage of news from Avalanche over the past year on issues like acquisitions and investments.
Later in the stream, Guy says that despite all the selling pressure in the market, AVAX can hold higher due to institutional investors:
Avalanche’s AVAX value of 180 million Recall that it has an ongoing DeFi incentive program worth $100 million, and the recently announced $290 million multiverse incentive program was also probably funded by AVAX sales, so yes, there is a lot of selling pressure. It’s therefore surprising to see AVAX holding up so well in the face of said selling pressure, and it’s a result of consistent demand from retail users and institutional investors alike.
Individual altcoin investors also continue to buy AVAX
C-chain, cryptographic techniques to manage contracts via ledger in a cryptographically validated, secure, immutable and durable way and integrates database techniques in a new way. Moreover, it avoids the pitfalls of Blockchain and has additional significant advantages. These subnets, which belong to the Avalanche network, can determine how many transactions individual investors make on the network. The analyst highlights the strong rise in the network in this regard:
To put things in perspective, Avalanche’s number of unique wallets on the C-chain has increased by 50% in just the last four months, and the daily transaction count on the C-chain is very close It has been in a strong uptrend until now. While
AVAX has managed to survive relatively well, the analyst warns that it could lose more than half of its current value this altcoin winter:
AVAX’s transaction fee on Avalanche subnets not needing to pay for AVAX could negatively affect future price action as it will reduce demand for AVAX… AVAX demand from subnet validators will be sufficient as each must buy 2,000 AVAX. The funny thing is that this layout makes Avalanche’s economic architecture eerily similar to that of Polkadot and Cosmos… It is quite possible for AVAX to drop as low as $10 in this bear market, but with a bit of luck, we might see it regain the strong support level around $40.
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