Standard Chartered has projected a bullish long-term outlook for Avalanche (AVAX), predicting the token could surge to $250 by 2029, driven by subnet growth, developer migration, and real-world asset tokenization on the network.
Background
- Standard Chartered has initiated formal coverage on Avalanche, a Layer 1 blockchain platform known for its Ethereum compatibility and scalability.
- The bank’s report follows the successful rollout of Avalanche's Etna (Avalanche9000) upgrade in December 2024, which significantly reduced costs and technical barriers for launching subnets—customizable blockchains that operate atop the Avalanche network.
- These subnets, now being branded as Layer 1s, no longer require staking large amounts of AVAX to operate, lowering entry costs from as high as $450,000 to near-zero.
Why Should You Pay Attention?
- Avalanche is emerging as a competitive force among Ethereum Virtual Machine (EVM)-compatible chains, particularly following the Etna upgrade.
- Developer participation has surged 40% since the upgrade, and Avalanche’s improved affordability and scalability could attract a wave of new applications in gaming, consumer apps, and tokenization.
- Standard Chartered believes this could fuel long-term growth and outperform both Bitcoin and Ethereum in relative price gains.
- With forecasts of AVAX reaching $250 by 2029, the report places Avalanche in the spotlight as a top pick among major digital assets.
Who Said What?
- Geoffrey Kendrick, Standard Chartered’s Global Head of Digital Assets Research, commented:
“I think Avalanche will be another winner, perhaps the winner in EVM chains… We see AVAX outperforming both Bitcoin and Ethereum in terms of relative price gains in the coming years.”
- He added that the Etna upgrade is showing tangible results:
“A quarter of Avalanche’s active subnets are now Etna-compatible, and developer numbers have jumped 40% since the upgrade.”
- Kendrick further emphasized Avalanche's traction in real-world asset tokenization, noting that BlackRock’s $1.9 billion BUIDL fund recently began supporting Avalanche, bringing $52 million to the network.
- The Avalanche Foundation is also backing growth through initiatives like Retro9000 (a $40M grant program) and InfraBUIDL (a $15M AI-focused fund).
Zooming Out
- Standard Chartered’s coverage highlights a growing institutional interest in Avalanche as a high-growth, high-volatility blockchain contender.
- With major developments like reduced subnet costs, rising developer adoption, and high-profile integrations such as BlackRock’s tokenized assets, Avalanche is positioning itself not just as an Ethereum alternative—but as a potential leader in the next wave of blockchain innovation.
- If Kendrick’s forecasts prove accurate, AVAX could be one of the most aggressively appreciating assets in the crypto asset market over the next five years.
