Tuesday, November 29, 2022

AVAX Token Saw Boost From The Subnets Chatter: Report

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The AVAX token saw boost from the subnets chatter while its rise could have also something to do with the Avalanche Summit in Barcelona as we can see more today in our latest altcoin news.

AVAX was on a tear all week before dropping on Saturday after the Avalanche Summit in Barcelona. The Summit kicked off this week and prove to be a stellar run for token. The AvAX token saw boost of 200% in the past year and 6% in the past month. It jumped 26% last week and dropped sharply on Saturday along with the rest of the marekt that had a strogn week.

avax token
AVAX 24-hour Price Chart (Source: Coingecko)

The recent bullish price action in aVAX was not just a conference. The token enjoyed a boost thanks to the chatter about the network launch of subnets. Consider the Foundation’s announced $290 million development fund regarding scaling technology and this fund will also be used to incentivize developer activity as well as a subnetwork. In broad explanations, subnets work as white-label solutions for organizations or developers to build and deploy customized blockchains. The blockchain can be specific to NFTs or DEFi but can also be open to the public or closed to be a set of verified users.

The advantage of creating a specific network means that the networks can also be optimized for the exact need of the network’s objective and minting a new NFT is also much less expensive so for example, if you decide to jump in the multi-step yield farm in DEFI it can be more expensive. This also means that the activities are siloed from one another and help to keep fees low across the board. During the DEFI summer in 2020, the high was fees on ETH surged once the new DEFI project launched and hurt all users on the network.

avax weekyl
AVAX 7-Day Price Chart (Source: coingecko)

The entire crypto networks like Ethereum, Solana, or Bitcoin could be ported over to a subnet on Avalanche and these subnets also are able to launch their own tokens rather than use the AVAX token. The subnets are not live yet and they are facing heavy criticism that they are only glorified sidechains that have some fancy marketing. It is worth noting that most of the criticism came from ETH enthusiasts and Avalanche just like Solana is framed as an ETH competitor. You can also give a debut subnet whirl by minging an NFT and making a few swaps but this subnet is called WAGMI and works like a testnet with its token that gives a sense of how the subnet can work in the world. Once Avalanche subnets go live, AVAX will react again.

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