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Investing.com -- Avalanche’s AVAX token could see a more than tenfold price surge by the end of the decade, according to Standard Chartered (LON:STAN).
The bank expects AVAX to reach $250 by the end of 2029, up from the current price of around $17, supported by Avalanche’s unique scaling architecture and early signs of developer momentum.
Avalanche, often described as a smaller version of Ethereum, uses a system of subnets—now rebranded as L1s—to scale its network. This approach gained traction with the Etna upgrade in December 2024, which slashed the cost of launching new L1s by removing the AVAX staking requirement.
"While it is still too early to tell whether the new subnet approach will work, we think the fact that one-quarter of active subnets are already Etna-compatible is encouraging," said Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered Bank.
The network has seen a 40% rise in active developers since the upgrade, in contrast to declines on Ethereum layer 2 chains. This jump appears to be driven by Avalanche’s compatibility with the Ethereum Virtual Machine, which eases migration for developers.
Although Avalanche is competing with Ethereum layer 2s like Arbitrum and Optimism, Kendrikc notes that AVAX holds a significantly larger market cap—around $9 billion—despite earning lower fees.
The analyst attributes this to the so-called “layer 1 premium” and the importance of GDP, or end-user fees, in determining token value. “To increase market cap, more GDP is needed,” the bank wrote.
While AVAX’s historical volatility remains high—close to 100% over a three-month period—Standard Chartered believes the network’s low base and improving fundamentals make it well-positioned for outperformance.
“We see AVAX outperforming both Bitcoin and Ethereum in terms of relative price gains in the coming years,” the report states.
Additional support may come from real-world use cases and tokenization, such as Blackrock’s BUIDL fund, which expanded to Avalanche in late 2024. Development incentives are also in place through the Avalanche Foundation’s grant programs targeting L1 infrastructure and AI applications.
The bank’s long-term view is that incremental improvements on Avalanche’s smaller base could deliver notable upside, provided the current growth trajectory holds.