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Standard Chartered has launched coverage on Avalanche (AVAX), predicting its growth potential could see the token rise over 10 times by 2029.
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This optimistic forecast reflects the bank’s belief in Avalanche’s innovative upgrades and its capabilities as a leading Layer 1 blockchain.
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“The Etna upgrade is already showing signs of success, with a significant spike in developer engagement,” stated Geoffrey Kendrick, the bank’s global head of digital assets research.
Standard Chartered forecasts Avalanche’s AVAX token could surge to $250 by 2029, driven by innovative upgrades and growing developer interest.
Avalanche’s Potential: The Impact of the Etna Upgrade on AVAX Pricing
Standard Chartered’s recent analysis indicates a strong bullish sentiment for Avalanche, particularly in light of the Etna upgrade, which is expected to streamline the process of launching subnets within the network. Currently valued at approximately $20, Kendrick’s projections suggest AVAX could soar to $250 by the end of 2029. This assertion hinges on the bank’s confidence in Avalanche as a ‘winner’ among Ethereum Virtual Machine (EVM) competitors.
Developer Engagement and the Surge of Early Adoption
The Etna upgrade, activated in December 2024, has significantly lowered the barrier for developers to create their own Layer 1 solutions on Avalanche. Kendrick highlighted that initial results are promising, with a quarter of the active subnets now compatible with Etna and a remarkable 40% increase in developer participation since its introduction. This shift points to a migration of developers from Ethereum Layer 2 solutions, fueled by the ease of compatibility with Ethereum’s programming structure.
Real-World Applications and Tokenization Trends
Avalanche is not just focused on enhancing its network functionalities but is also making strides in the realm of real-world asset tokenization. Recent supportive moves include BlackRock’s $1.9 billion tokenized fund, BUIDL, which has recently integrated Avalanche, injecting $52 million of assets onto the network. Such developments could enhance Avalanche’s attractiveness as a platform for tokenized assets.
Incentives for Development: Funding for Growth and Innovation
To bolster its growth and continue attracting talented developers, the Avalanche Foundation has introduced two significant incentive programs: Retro9000, offering a $40 million grant fund, and InfraBUIDL, a $15 million fund dedicated to AI-related projects. These initiatives showcase Avalanche’s commitment to fostering an engaging ecosystem that supports innovation while attracting new applications across various sectors, such as gaming and consumer tools.
Conclusion
With ongoing upgrades and a clear strategy for development incentives, Avalanche’s future looks promising. Kendrick’s forecasts indicate that AVAX is set to outperform traditional cryptocurrencies like Bitcoin and Ethereum in upcoming years. This potential growth, coupled with a decreasing path for new projects through structural enhancements, positions Avalanche as a key player in the evolving landscape of digital assets.
