AVAX Price Gains Bitcoin-Like Momentum as Avalanche Pushes Scarcity with Capped Supply and Fee Burn

AVAX price is poised for a bullish run as Avalanche emphasizes its capped supply and fee burn model, drawing comparisons to Bitcoin's scarcity. Analysts predict potential highs of $64.04 and $79.77 as market interest surges.

Avalanche's Limited Supply Sparks Bitcoin Comparison

In an X post dated December 25, AVA Labs founder and CEO Emin Gun Sirer highlighted a crucial feature of Avalanche — its limited supply — drawing comparisons to Bitcoin's fixed limit of 21 million.

The total amount of Avalanche tokens is limited to 715.74 million, in contrast to Ethereum's unlimited production of more than 120 million coins. Many are wondering how this scarcity, together with Avalanche's method of destroying all transaction fees, would affect the long-term rise of the AVAX price.

According to Sirer, Bitcoin's limited supply is one of the main reasons for its high value; it encourages long-term investment and gives people faith in Bitcoin's deflationary properties. Avalanche plans to use a comparable strategy to establish itself as a rare digital asset with robust value-accrual dynamics. Tokens with a limited quantity may attract investors due to this deflationary effect.

AVAX Price Shows Potential as a Scarce Digital Asset

Avalanche token stands apart in the crypto industry, providing both a healthy ecosystem and scarcity, thanks to comparisons with Bitcoin.

These characteristics may entice long-term investors, who may drive up the Avalanche price in the future. This is particularly the case in a market where Ethereum and other inflationary assets predominate.

Cryptocurrency Avalanche fell 2% to $40.973 according to the most recent price chart. The 24-hour range for this asset is $40.08 to $41.84. With a trading volume of $453 million, the cryptocurrency has a market cap of $16.5 billion. Its market capitalization and ranking indicate resilience and continuous investor interest, even though it has recently declined.

Experts Predict Bullish Momentum for AVAX Price

According to the expert, the crypto's current price movement suggests that bullish momentum is on the horizon. A bullish projection for the cryptocurrency ahead has been revealed by the expert, who has highlighted $34.71 as a major support zone. Rose predicts that in the near future, the AVAX price might aim for the $64.04 or $79.77 mark, Coingape shares.

Plus, the Avalanche9000 update was just released by Avalanche. The goal is to reduce the cost of launching subnets and increase scalability. Potentially higher network activity due to the upgrade might lead to a future pricing hike for AVAX.