The cryptocurrency market continues to evolve at a rapid pace, with newer blockchains challenging the dominance of established giants like Bitcoin and Ethereum. Among them, Avalanche (AVAX) is emerging as a strong contender, drawing significant attention from institutional analysts. In a recent research note, Standard Chartered has initiated coverage on AVAX with a bold long-term forecast—predicting the token could surge over 10x its current value by the end of 2029.
According to Geoff Kendrick, the bank’s digital asset analyst, Avalanche is uniquely positioned to outperform both Bitcoin and Ethereum in terms of relative price appreciation over the next several years. This optimism stems from Avalanche’s innovative architecture, growing ecosystem, and strategic upgrades that are lowering barriers to entry for developers and enterprises alike.
Why Avalanche Stands Out in the Blockchain Race
What sets Avalanche apart from other layer-1 blockchains is its subnet-based scalability model. Unlike Ethereum’s monolithic chain or Solana’s high-throughput single chain, Avalanche enables the creation of customizable, application-specific blockchains called subnets.
“The unique thing about Avalanche is how it is attempting to achieve scale. Unlike Ethereum or Solana, Avalanche uses a set of subnets, or sidechains,” said Kendrick.
These subnets function as independent networks that can process transactions in parallel, significantly improving throughput and reducing congestion. Each subnet can be tailored for specific use cases—ranging from enterprise DeFi platforms to gaming ecosystems—without impacting the performance of the main network.
This modular approach not only enhances scalability but also allows for greater flexibility in governance, consensus rules, and token economics. As more projects adopt subnets, the demand for AVAX—the native token used for staking, transaction fees, and subnet creation—is expected to rise substantially.
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Post-Upgrade Momentum: The Avalanche9000 Effect
A pivotal moment for Avalanche came in December 2024 with the rollout of Avalanche9000, the network’s largest upgrade to date. This overhaul drastically reduced the cost of launching a subnet—bringing it close to zero—and improved interoperability across chains.
As a result, developer activity on the platform has surged. More than 25% of active subnets are now Etna-compatible, signaling strong adoption of the latest protocol standards. Etna compatibility brings enhanced security features, faster finality, and better cross-chain communication, making it easier for new projects to integrate seamlessly into the broader Avalanche ecosystem.
The upgrade also coincided with a major funding move: the Avalanche Foundation raised $250 million in a private token sale led by top-tier investors including Galaxy Digital, Dragonfly Capital, and ParaFi Capital. This capital infusion is being directed toward ecosystem growth, developer incentives, and global expansion efforts.
With these developments, Avalanche has solidified its position as one of the most technically advanced and developer-friendly blockchains in the industry.
Market Position and Growth Potential
Currently ranked as the 15th-largest cryptocurrency by market capitalization at around $9 billion, Avalanche holds considerable upside potential. For context, Bitcoin and Ethereum sit at the top with market caps exceeding $1 trillion and $400 billion respectively—but their size makes double-digit percentage gains increasingly difficult.
In contrast, mid-cap assets like AVAX can experience exponential growth from relatively small shifts in adoption or investor sentiment.
Moreover, Avalanche ranks 10th among all blockchains by Total Value Locked (TVL), a key metric reflecting the amount of assets deployed in decentralized applications (dApps) on the network. A high TVL indicates robust usage and trust in the platform’s infrastructure—factors that contribute directly to token demand.
Kendrick believes this combination of technical innovation, ecosystem momentum, and favorable market positioning will allow AVAX to outperform even optimistic projections for BTC and ETH in the coming years.
Price Forecast: A 10x Surge by 2029?
Standard Chartered’s price targets reflect a highly bullish outlook:
- $55 by end of 2025
- $100 in 2026
- $150 in 2027
- $200 in 2028
- $250 by end of 2029
If achieved, this trajectory would represent a more than tenfold increase from current levels—outpacing projected returns for both Bitcoin and Ethereum during the same period.
While long-term forecasts should always be approached with caution, the rationale behind these numbers lies in Avalanche’s ability to capture value from real-world blockchain adoption. As enterprises seek scalable, secure, and customizable solutions, subnets offer a compelling alternative to generic smart contract platforms.
Furthermore, increased institutional interest—evidenced by backing from firms like Galaxy Digital—adds credibility and stability to the network’s growth story.
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Frequently Asked Questions (FAQ)
What makes Avalanche different from Ethereum?
Avalanche uses a subnet architecture that allows for multiple parallel blockchains tailored to specific applications. This enables higher scalability and customization compared to Ethereum’s single-chain model, which often faces congestion and high gas fees during peak usage.
How does AVAX gain value?
AVAX gains value through utility and scarcity. It is required to pay transaction fees, secure the network via staking, and create new subnets. As more subnets launch and activity increases on the network, demand for AVAX rises—potentially driving up its price.
Is Standard Chartered’s $250 price target realistic?
While speculative, the target is based on fundamental improvements in scalability, developer adoption, and ecosystem growth. If Avalanche continues expanding its enterprise partnerships and dApp offerings at current rates, such a valuation could be achievable by 2029.
What risks does Avalanche face?
Key risks include competition from other scalable blockchains (like Solana or Polkadot), slower-than-expected subnet adoption, regulatory uncertainty, and macroeconomic factors affecting crypto markets broadly.
Can anyone create a subnet on Avalanche?
Yes—thanks to recent upgrades, creating a subnet is now nearly cost-free and accessible to developers worldwide. This democratization lowers entry barriers and encourages innovation across industries.
How does the Avalanche9000 upgrade benefit users?
The upgrade reduces costs, improves speed and security, and enhances interoperability between subnets. Users benefit from faster transactions, lower fees, and access to a wider range of decentralized applications built on specialized chains.
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Final Thoughts: A High-Potential Contender in Web3
Avalanche is no longer just another smart contract platform—it’s becoming a foundational layer for scalable, enterprise-grade blockchain solutions. With strong institutional support, continuous technical innovation, and a thriving developer community, AVAX is well-positioned to capture significant value over the next half-decade.
While Bitcoin remains digital gold and Ethereum anchors decentralized finance, Avalanche may emerge as the go-to infrastructure for customized blockchain applications across finance, gaming, supply chain, and beyond.
For forward-looking investors and builders alike, monitoring Avalanche’s progress—and considering strategic exposure to AVAX—could prove highly rewarding in the years ahead.