Standard Chartered has made a bold prediction for the cryptocurrency Avalanche (AVAX), forecasting that its price could soar to $250 by 2029. This forecast represents a tenfold increase from its current price of around $20. Analysts at the bank believe this growth will be driven by several factors, particularly the recent Etna upgrade. This upgrade has improved Avalanche’s scalability and made it much cheaper to create subnets, which are separate networks that can operate under the Avalanche blockchain.
Standard Chartered predicts Avalanche (AVAX) could reach $250 by 2029, driven by the recent Etna upgrade and increased scalability.
Avalanche’s approach to scaling is different from Ethereum’s Layer 2 solutions. The customizable subnets allow developers to create new applications more easily. Since the Etna upgrade, developer activity on the platform has surged by 40%. Many developers are migrating from Ethereum to Avalanche because of its compatibility with the Ethereum Virtual Machine (EVM). This compatibility means developers can shift with little effort. Additionally, the Etna upgrade has positioned AVAX as the 10th largest in total value locked (TVL), further enhancing its market attractiveness. As a result, increased developer activity is expected to sustain momentum and drive further price gains.
Avalanche’s current market position is significant. Standard Chartered predicts that AVAX will outperform both Bitcoin (BTC) and Ethereum (ETH) in relative price gains. Although AVAX has a smaller market cap, this can lead to more significant price movements. However, its volatility is high, sitting close to 100% over the past three months, nearly double that of Bitcoin. This high volatility may scare off some investors, but it can also create opportunities for major returns.
Financial and institutional support is also increasing for Avalanche. The Avalanche Foundation recently secured a $250 million token sale and launched grant programs to support new projects.
Institutional interest is growing, with firms like VanEck filing for an Avalanche ETF in the US and BlackRock backing Avalanche in a $1.9 billion tokenized fund.
