Avalanche (AVAX), launched in September 2020, is the native cryptocurrency of the Avalanche blockchain, a high-performance, decentralized Layer 1 blockchain platform designed for smart contracts and custom blockchain networks. Founded by Ava Labs, Avalanche offers scalability, speed, and interoperability, competing with Ethereum. AVAX powers transaction fees, staking, governance, and subnet creation, with $6.2B in total value locked (TVL) across its ecosystem.

Key Features

  • High Throughput: Processes up to 6,500 transactions per second (TPS) with sub-second finality.
  • Low Fees: Average transaction cost of ~$0.02, ideal for DeFi, NFTs, and gaming.
  • Tri-Chain Architecture: Comprises X-Chain (asset exchange), C-Chain (smart contracts), and P-Chain (coordination), optimizing performance.
  • Ecosystem: Hosts 3.8M daily transactions, 2.2M active wallets, and projects like Trader Joe, FIFA Collect, and MapleStory Universe.

AVAX Token

  • Purpose: Used for transaction fees, staking, governance, and creating subnets (custom blockchains).
  • Supply: Circulating supply of ~422 million AVAX, with a max supply of 720 million.
  • Contract Address: Native to Avalanche (C-Chain); CoinGecko CMC. Add to wallets like MetaMask or Core.

Who Are the Founders of Avalanche?

Avalanche was founded by Ava Labs, led by Emin Gün Sirer, a Cornell University professor, alongside Kevin Sekniqi and Maofan “Ted” Yin. Launched with a $42M ICO in 2020, Ava Labs raised $230M in 2021 from investors like Polychain Capital and Andreessen Horowitz (a16z). The team focuses on solving the blockchain trilemma of scalability, security, and decentralization.

What Makes Avalanche Unique?

Avalanche stands out for its innovative design:

  • Subnet Architecture: Developers create custom blockchains (subnets) tailored for specific use cases, like FIFA Collect or MapleStory Universe.
  • Proof-of-Stake (PoS): Energy-efficient consensus with 1,200+ validators, enabling low-cost, fast transactions.
  • Interoperability: Bridges to Ethereum (e.g., SushiSwap, TrueUSD) enhance cross-chain DeFi and liquidity.
  • Gaming Focus: Hosts AAA games like Off the Grid, with a Battle Pass NFT on Magic Eden.

AVAX Network Upgrades (2025)

  • Retro9000 Airdrop (Q1 2025): Distributed AVAX rewards to active users, boosting ecosystem engagement.
  • Gaia Upgrade (June 2025): Improved subnet scalability, increasing TPS by 20% and reducing node requirements.
  • FIFA Collect L1 (May 2025): Launched a dedicated Avalanche subnet for FIFA’s on-chain collectibles.

How Is AVAX Secured?

Avalanche and AVAX are secured through:

  • PoS Consensus: Validators stake AVAX (minimum 2,000 AVAX) to secure the network, with slashing for misbehaviour.
  • Tri-Chain Security: X-Chain, C-Chain, and P-Chain distribute tasks, enhancing resilience.
  • Smart Contract Audits: Regular audits by firms like Trail of Bits ensure dApp and subnet integrity.
  • Governance: AVAX stakers vote on protocol upgrades, ensuring decentralized control.

Conclusion

Avalanche (AVAX) powers a scalable, fast, and interoperable Layer 1 blockchain, rivaling Ethereum with its subnet architecture and low fees. With $6.2B TVL, 2.2M active wallets, and projects like FIFA Collect and MapleStory Universe, Avalanche drives DeFi, gaming, and Web3 innovation.