Avalanche (AVAX) Could Surge Over 10x by 2029, Predicts Standard Chartered
Avalanche (AVAX) Predicted to Soar Over 10x by 2029
Avalanche’s AVAX token is poised for a more than tenfold price increase by the end of the decade, according to a bullish prediction by Standard Chartered. The bank projects AVAX could reach $250 by 2029, up from its current price of approximately $17. This optimistic outlook is driven by Avalanche’s unique scaling architecture and growing developer adoption.
Scaling Architecture and Developer Momentum
Avalanche’s network utilizes a system of subnets, now rebranded as L1s, to enhance scalability. The Etna upgrade in December 2024 further accelerated this process by reducing the cost of launching new L1s, eliminating the AVAX staking requirement. This has led to increased developer interest, with a 40% rise in active developers since the upgrade. Avalanche’s compatibility with the Ethereum Virtual Machine (EVM) has also eased migration for developers, contributing to its growth.
Competitive Edge Over Ethereum Layer 2 Chains
While competing with Ethereum layer 2 chains like Arbitrum and Optimism, AVAX boasts a significantly larger market cap of around $9 billion. Standard Chartered attributes this to the “layer 1 premium” and the role of end-user fees (GDP) in determining token value. The bank suggests that increasing GDP could further boost AVAX’s market cap.
Volatility and Growth Potential
Despite AVAX’s high historical volatility—nearing 100% over a three-month period—Standard Chartered remains optimistic. The network’s low base and improving fundamentals position it for strong outperformance. The report highlights that AVAX could outpace both Bitcoin and Ethereum in relative price gains over the next few years.
Real-World Use Cases and Development Incentives
Additional growth drivers include real-world use cases, such as tokenization, and initiatives like Blackrock’s BUIDL fund expanding to Avalanche. Development incentives through the Avalanche Foundation’s grant programs further bolster the network’s potential, particularly in L1 infrastructure and AI applications.
Long-Term Outlook
Standard Chartered’s bullish stance is rooted in Avalanche’s smaller base and incremental improvements, which could deliver significant upside if growth trends continue. The bank emphasizes that while risks remain, the network’s unique approach and growing ecosystem make it a compelling investment opportunity in the blockchain space.
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