Standard Chartered: Avalanche will surge and outperform Bitcoin by the end of 2029

Standard Chartered Bank forecasts that the price of Bitcoin could increase fivefold by the end of 2029, while also noting that another altcoin has the potential to outperform Bitcoin in terms of growth rate.

According to this bank’s April report, the utility token AVAX from the Layer-1 Avalanche blockchain is predicted to reach a price of $250 by the end of the decade—corresponding to a growth of 1,326% from its current price. Meanwhile, Standard Chartered expects the price of Bitcoin to increase by nearly 500%, reaching $500,000 by the end of 2029.

Currently, AVAX is trading at $18.55, while the price of Bitcoin is fluctuating around $83,850, according to data from CoinGecko.

AVAX price chart | Source: TradingviewGeoff Kendrick, Head of Global Digital Asset Research at Standard Chartered, noted that Avalanche’s unique approach to scaling its network through specialized L1 application networks (previously known as subnets) could be the main driving force behind AVAX’s strong growth.

“The small market capitalization of Avalanche currently means that small improvements in development can have a large impact. Therefore, we predict that AVAX will surpass both Bitcoin and Ethereum in terms of relative price increase,” Kendrick wrote in the report.

Avalanche is considered one of the pioneering blockchains in improving transaction speed and reducing costs on the network, aiming to attract more users and developers.

The decentralized finance sector (DeFi), often likened to the wild west of the cryptocurrency industry, currently has a much lower user base compared to centralized platforms, leading to fierce competition among protocols.

Last December, Avalanche completed the Etna upgrade, which enhanced support for its scaling solution and significantly reduced interaction costs with the network. After the upgrade, the cost of setting up an L1 network on Avalanche decreased sharply, attracting more and more developers to switch to this platform. According to Kendrick, this trend is likely to continue in the future.

“We believe that the current development momentum will continue, driving activity growth on Avalanche and contributing to the enhancement of AVAX’s value,” Kendrick commented.

He also added that, “although it is still too early to determine whether this new approach (L1) will be successful, the fact that a quarter of the networks (L1) currently operating are compatible with Etna is an encouraging sign.”

Standard Chartered predicts that the price of AVAX will begin to show a positive upward trend as early as this year, with an expected price of $55 by the end of 2025. The report also forecasts that this token’s price will reach $100 in 2026, $150 in 2027, and $200 in 2028.

Notably, AVAX once reached an all-time high of nearly $145 in 2021, but is currently about 88% lower than that peak.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct thorough research before making any decisions. We are not responsible for your investment decisions.

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Mr. Teacher

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