Avalanche (AVAX) emerges as one of the top-performing blockchains in the crypto market, boasting near-instant transaction speed and impressive scalability. With a focus on security, decentralization, and low costs, this platform by Ava Labs aims to revolutionize the blockchain ecosystem and decentralized finance.
Avalanche (AVAX) is a cryptocurrency and blockchain that positions itself as a high-performance alternative to Ethereum. AVAX is the native token of the Avalanche blockchain, designed to facilitate blockchain project development and decentralized applications.
Like Ethereum, Avalanche uses smart contracts that execute automatically when certain conditions are met. The Avalanche blockchain stands out for its ability to process near-instantaneous transactions with rapid finality. The AVAX token is used to pay transaction fees and secure the entire network through staking.
One of Avalanche’s most impressive features is its processing capacity, reaching 4,500 transactions per second. Even more ambitious, Ava Labs recently unveiled its intention to reach 100,000 TPS through the “Vryx” scaling solution.
Launched in 2020, Avalanche was designed to be fast, versatile, secure, affordable, and accessible. The project is completely open-source, ensuring transparency and collaborative innovation.
Avalanche’s story begins in 2018 when Professor Emin Gün Sirer and his team at Cornell University published an academic paper describing a new consensus protocol called “Avalanche.” This protocol promised to solve scalability and energy consumption problems of existing blockchains.
In 2019, Emin Gün Sirer founded Ava Labs with Kevin Sekniqi and Ted Yin to transform this research into a functional blockchain. The team raised $6 million in a private funding round.
The official launch of the mainnet occurred in September 2020, after an intensive testing period. This launch was accompanied by a public sale of AVAX tokens that raised an additional $42 million.
The year 2021 marked a turning point with the deployment of the Avalanche Bridge and the launch of the Avalanche Rush program, endowed with $180 million to attract DeFi projects to the platform.
In 2022-2023, despite a bear market, Avalanche continued its development with updates such as Avalanche Warp Messaging and Glacier API. The year 2024 saw the announcement of Vryx, aiming to increase the network’s capacity to 100,000 transactions per second.
The main creator of Avalanche is Emin Gün Sirer, a computer science professor at Cornell University where he led the Initiative for Cryptocurrencies and Smart Contracts (IC3).
Before creating Avalanche, Sirer had already made a name for himself in the cryptocurrency field. In 2002, he conceptualized a proof-of-work based cryptocurrency, several years before Bitcoin. In 2014, he co-created Karma, one of the first systems based on proof of stake.
His vision for Avalanche was born from his frustration with the limitations of existing blockchains. To realize this vision, he founded Ava Labs in 2018 with Kevin Sekniqi and Ted Yin, two other researchers from Cornell.
Today, the Ava Labs team has more than 100 employees distributed worldwide, including engineers, researchers, marketing experts, and business development specialists.
The AVAX token fulfills several essential functions within the Avalanche ecosystem:
One of the primary functions of the AVAX token is to cover costs associated with using the network.
AVAX is used as a means of payment for transaction fees across the entire network. These fees are then burned, creating a deflationary mechanism.
Staking plays a crucial role in the security and operation of the Avalanche network. One of the main uses of AVAX is staking, allowing holders to lock their tokens to participate in transaction validation.
Validators must stake a minimum of 2,000 AVAX, while users with more modest amounts can delegate their tokens. Stakers receive annual yields of approximately 7.70% APY.
AVAX holders can participate in governance decisions that determine the future evolution of the platform, such as transaction fees or technical updates.
AVAX serves as a foundation for Avalanche’s DeFi ecosystem, used as collateral in lending protocols and as a trading pair in decentralized exchanges.
Developers can create their own custom subnets on Avalanche, with their own rules and parameters, while benefiting from the security of the main network.
The Avalanche network stands out for its unique architecture and innovative consensus mechanism.
Avalanche is structured around a primary network that coordinates three specialized blockchains :
The heart of Avalanche’s innovation lies in its Snow consensus protocol. Unlike traditional mechanisms, the Avalanche consensus works through repeated sampling of the network.
Each validator randomly polls a small group of other validators to determine the validity of a transaction. This process is quickly repeated until a consensus is reached across the entire network.
This approach allows for transaction finality in seconds, with minimal energy consumption. Additionally, the protocol can theoretically resist attacks involving up to 80% of malicious nodes.
To participate in validation, users must stake a minimum of 2,000 AVAX and operate a validator node. Users who don’t have this amount can delegate their tokens to existing validators.
Unlike other networks, Avalanche does not implement a “slashing” mechanism. Instead, staked tokens are locked for a defined period, creating an economic incentive to act honestly.
Avalanche’s unique architecture is based on several key elements that we will detail.
As mentioned previously, Avalanche relies on three main blockchains, each optimized for specific functions. This modular architecture allows each chain to be optimized for its function while maintaining interoperability between them.
One of Avalanche’s major assets is its native compatibility with the Ethereum ecosystem. The C-Chain implements the Ethereum Virtual Machine (EVM), allowing developers to port their Ethereum applications to Avalanche with minimal effort.
This compatibility extends to popular development tools like Truffle, Hardhat, and Remix, as well as wallets like MetaMask. The Avalanche Bridge allows secure asset transfers between Ethereum and Avalanche.
A major innovation of Avalanche is its system of subnets, which allows for creating customized blockchains with specific rules while benefiting from the security of the main network.
This approach offers several advantages :
Projects like Defi Kingdoms and Crabada have already demonstrated the potential of this approach.
Avalanche displays impressive performance :
Avalanche’s consensus belongs to a family of protocols called Snow, operating according to a principle of repeated random sampling and metastability. Let’s explain.
The process unfolds as follows :
The Snow protocol combines the advantages of classical consensus (low latency, high throughput) and Nakamoto consensus (scalability, robustness, decentralization) without their respective drawbacks.
It offers exceptional resistance to attacks, potentially tolerating up to 80% Byzantine nodes, well beyond the usual thresholds of 33% or 50%.
Security is an essential pillar of Avalanche, ensured by several complementary mechanisms.
Avalanche uses a Proof of Stake mechanism requiring validators to stake a minimum of 2,000 AVAX. This prerequisite protects against Sybil attacks by making the cost of creating multiple malicious identities prohibitive.
Unlike other networks, Avalanche doesn’t use a “slashing” mechanism that would confiscate tokens from validators in case of inappropriate behavior. Instead, staked tokens are locked for a defined period.
The subnet architecture offers risk isolation and allows for customization of security mechanisms according to the specific needs of each application.
Since its launch in 2020, Avalanche has not suffered any major security flaws. Currently, more than 60% of the total supply of AVAX is staked, demonstrating the community’s confidence in the network’s security.
Like any technology, Avalanche has strengths and weaknesses that are important to consider.
The Avalanche platform offers several notable benefits for its users and developers :
However, Avalanche also faces certain challenges and limitations :
The evolution of AVAX price and future perspectives are key elements for investors.
A look at the past journey of the AVAX token provides a better understanding of its volatility and potential. Launched in September 2020 at around $4.5, AVAX reached an all-time high of $146 in November 2021, before falling to $8.95 in late 2022 during the bear market.
In 2025, AVAX is trading around $22, marking an increase of over 150% in a year. With a market cap of over $9 billion, AVAX is still ranked in the top 15 largest cryptocurrencies.
For 2025, the price could fluctuate between $40.69 and $75.78. Longer-term projections suggest continued growth, with very optimistic estimates reaching up to $233 by 2030.
Several elements can impact the value of the AVAX token in the market :
Let’s revisit the key stages that marked the development and rise of Avalanche.
The early years were crucial for laying the project’s foundations.
To buy Avalanche in 2025, several options are available. However, we favor specialized crypto exchanges like Bitget or Binance. Unlike traditional brokers, exchanges give you real ownership of your tokens, allowing you to transfer them to a personal wallet or use them in the Avalanche ecosystem (staking, DeFi, NFT).
These platforms allow you to buy AVAX directly with euros or dollars via different payment methods (bank card, wire transfer). Here is our ranking of the best platforms in 2025 :
Here’s how to buy Avalanche in 5 steps on the best platform in our ranking.
Here are some precautions to take before purchasing cryptocurrency :
There are different ways to store your cryptocurrencies.
Cold wallets (hardware wallets) are considered the best way to secure cryptocurrencies. They are not connected to the internet, which makes them even more secure. Here are some examples :
Finally, hot wallets (software wallets) are also interesting for their responsiveness, but they are considered less secure. Unlike cold wallets, they are connected to the internet.
Some examples :
For maximum security, at InvestX we favor cold wallets like those from Ledger. For us, it’s the best way to secure digital assets.
There are several ways to obtain AVAX tokens without buying them directly. Airdrops distributed by new projects launched on Avalanche are a potential source, as are loyalty programs offered by certain exchanges or occasional promotional campaigns from Ava Labs.
Staking is a more common method for generating passive income in AVAX. You can either operate a validator node by staking 2,000 AVAX (approximately 7.70% APY), or delegate your tokens (minimum 25 AVAX, ~6-7% APY) to an existing validator. Many exchange platforms also offer simplified staking options.
Finally, some Learn-to-Earn platforms like Coinbase Earn or Binance Academy reward learning about cryptocurrencies, and Play-to-Earn games on Avalanche, such as Crabada or Imperium Empires, allow you to earn tokens by playing. However, you should remain vigilant against scams and consider the tax implications of these earnings.
Let’s now look at the status of AVAX crypto in major jurisdictions.
Here are some tax considerations that should interest you :
It is recommended to consult a specialized tax advisor to understand your specific obligations.
The initial distribution of AVAX tokens was allocated as follows : 6% went to private and public sales, 10% to the founding team and Ava Labs employees, 9.3% to the Avalanche Foundation for ecosystem development, and 7% to a community reserve and airdrops. The rest of the supply is intended for staking rewards distributed over time.
Currently, the main AVAX holders include various entities. Among them are venture capital funds like Polychain Capital and a16z, blockchain companies, as well as major centralized exchanges such as Binance, Coinbase, and Bitget, which hold funds on behalf of their users. Naturally, the founders, the Ava Labs team, and large validators (including institutional staking services) are also among the significant holders.
In terms of concentration, the 100 largest addresses hold approximately 65% of the total AVAX supply. This concentration is partially mitigated by the fact that a significant portion of these addresses belongs to exchange platforms. Avalanche’s Gini ratio, which measures inequality in distribution, is comparable to that of other major cryptocurrencies.
Avalanche has established itself in 2025 as a high-performance and innovative blockchain, thanks to its unique consensus and scalability. Its Ethereum compatibility and subnets attract developers and institutions, making it a key player in the crypto market.
Facing strong competition, Avalanche stands out with its clear vision and technical advances like Vryx (aiming for 100,000 TPS). Adoption remains crucial for its long-term success, despite the inherent risks in the volatile cryptocurrency market.
In conclusion, Avalanche offers promising technology, especially for DeFi and businesses. Its balance between performance, security, and decentralization can make it a very interesting option to diversify your crypto portfolio beyond Bitcoin and Ethereum.
A finance graduate, "Grings" is passionate about the cryptocurrency market and the opportunities brought by blockchain technology. With his technical background and informative approach, he has the ability to break down complex topics into clear and accessible articles.
Avalanche stands out thanks to its unique consensus mechanism that combines high performance with strong decentralization, its three-chain architecture, and its customizable subnet system, which allows developers to create tailor-made blockchains while benefiting from the security of the main network.
To run a validator node, a minimum of 2,000 AVAX is required. Users with smaller amounts can delegate their tokens to existing validators—typically with a minimum of 25 AVAX—and earn proportional rewards.
Avalanche has strong technological foundations and a growing ecosystem. However, like any crypto investment, it carries significant risks. Thorough research, proper diversification, and a long-term investment mindset are essential before making any decision.
The Avalanche consensus mechanism uses repeated random sampling, where each validator polls a small group of other validators to confirm transactions. This process continues until consensus is reached, enabling fast finality and strong resistance to attacks.
Key risks include the inherent volatility of cryptocurrencies, intense competition from other Layer 1 blockchains, regulatory uncertainty, and reliance on ongoing developer and user adoption to sustain growth.
Yes, Avalanche’s subnet system allows developers to build custom blockchains with their own rules while benefiting from interoperability and the security of the main network. This flexibility is one of the platform’s biggest advantages.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.