BofA Says Avalanche’s Scaling Capability Offers Viable Alternative to Ethereum

Avalanche’s AVAX token is now the 12th largest by market value.

AccessTimeIconDec 15, 2021 at 10:40 p.m. UTC
Updated May 11, 2023 at 4:11 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Smart-contract platform Avalanche’s ability to scale while remaining secure and decentralized makes it a credible alternative to Ethereum for DeFi projects, NFTs, gaming and other assets, Bank of America said in a research report.

Avalanche’s subnet feature is increasing adoption, the bank said, with more than 380 projects built on the platform.

“Subnets enable faster time-to finality (settlement) and lower costs than alternative blockchains,” with the validation of around 4,500 transactions per second, analysts led by Alkesh Shah wrote in the note published Dec. 10.

Avalanche’s total value locked, or the value of tokens held in decentralized finance protocols, has risen 21% month on month and rocketed 6,255% since August, the bank’s analysts said.

Deloitte’s decision to use the Avalanche platform for its Close as You Go (CAYG) disaster-relief platform shows how corporations can “leverage blockchain technology to increase efficiencies and reduce costs,” Bank of America said.

AVAX, Avalanche’s native token, is now the 12th largest by market value, at $22.6 billion, and has increased 2,869% this year, the note added.

BofA said it expects corporate adoption of blockchain technology to hasten.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Author placeholder image

Will Canny is CoinDesk's finance reporter.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about