It hasn’t been the best year for the crypto market. The general negative trend affected all coins and made investors more cautious. It indicates you should be careful when deciding on a trade. But what if changing AVAX to ETH seems like a wise move?
Before you go ahead with the trade, read this guide. It describes the crucial details related to Ethereum and Avalanche. You’ll learn about the latest events and price fluctuations. Once you have the info, it’ll be easy to see if the trade is a good deal.
What Is Happening with AVAX in 2022?
Let’s begin with the AVAX token. It has been around for only a couple of years as the Avalanche platform was launched in 2020. But the statistics show over 450 individual projects on this platform, and the community exceeds 1.5 million members.
Price
The initial AVAX price during the launch in 2020 was around $4. It reached its peak value in November 2021, when it exceeded $134. Bad times for the crypto market have caused a drop from then, so the current AVAX is worth $16. That still puts it among the top 20 digital currencies currently available.
Demand
The maximum supply is 720 million, but there are about 282 million AVAX coins in circulation. It’s worth noting that the token goes through an occasional “burning” process to reduce supply. As a result, this is a scarce asset that maintains a high demand level.
News
If we judge based on social networks, Avalanche creators keep working hard on improving the platform. It’s worth noting that they focus on blockchain interoperability. It secures the easy transfer of assets between blockchains.
The company recently launched a Bitcoin Bridge via a Web3 wallet core. It allows BTC users access to DeFi protocols based on Avalanche, such as TraderJoe and Platypus.
What Is Happening with ETH in 2022?
Ethereum hit the market in 2015, and it proved itself as a reliable cryptocurrency. If we put BTC aside, ETH has been the most valuable coin in the digital market for years. But due to the latest events — can this trend continue? Here are some important details to know!
Price
ETH began with a $1 value in 2015, but it went to reach a $4.7K peak in 2021. During the first days of 2022, its value was around $3,735. ETH was hit hard by the crypto crisis, and its current value is $1,034. But while that’s a huge drop when looking at the numbers, it didn’t lose more value than other currencies percentage-wise.
Demand
Ethereum has a long tradition and prestigious reputation in the crypto world. Although the investors have become more cautious than ever, most agree ETH is among the low-risk crypto investment options. As a result, the demand is lower than a year ago but still at decent levels.
ETH has a market cap that exceeds $125 billion and about 121 million coins in circulation. Everyone is excited about the Ethereum 2.0 update, which is about to be released in the next year. That could increase the ETH demand, especially in the short run.
News
The dYdX exchange decided to launch a blockchain on Cosmos, leaving the Ethereum ecosystem. It made many investors cautious since it shows even the industry experts worry about the ETH’s future performance.
Some encouraging news includes Anchorage launching ETH staking for institutional investors. In addition, Ethereum promised migration to a PoS consensus, and there’s no doubt that it will have a huge effect on its future.
AVAX to ETH: Should You Wait, or Should You Swap?
It’s hard to give a clear recommendation. However, ETH has proved itself as the most stable altcoin and a currency dominating the digital world after BTC. So, it could be smart to keep your crypto assets in Ethereum tokens until the market bounces back.
You might also want to convert Avalanche to Ethereum because you want to acquire another cryptocurrency. MIOTA has attracted many investors, so converting ETH to IOTA could be a wise move.
But ultimately, analyze all factors and trust your intuition after assessing all information. Just make sure to use a trustworthy exchange with reasonable fees!
There are several choices available to you if you wish to invest some of your extra money rather than keeping it sitting in a bank account.
However, what do you need to understand prior to investing in this cryptocurrency? And what does the future hold for it?
Ella Marcotte
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