Avalanche (AVAX) is currently on a downward trend, one that it has not broken since last month. The latest market data shows that the token has depreciated 12% since last week, a huge loss for investors and traders interested in the token.
Despite this, the platform is maintaining its momentum. A new upgrade proposal might improve developer and user experience on the platform, further onboarding new users and developers to use Avalanche.
The Gist Of ACP-77
ACP-77 is the newly announced major proposal made by the Avalanche Foundation to simplify the system for developers, enhancing the flexibility of launching subnets on-chain.
Avalanche subnets act like layer-1 blockchains, with the subnets using the mainnet as a bridge between subnet to subnet.
According to the proposal, the current system of launching subnets on-chain limits developers. With a minimum 2,000 AVAX stake needed by subnet validators, the financial barrier filters devs with little to no funding, driving innovation downward. Thus, ACP-77 proposes to remove the financial barrier along with the required mainnet validation for subnet validators.
This means developers won’t be hampered by a huge upfront financial commitment along with the technically difficult task of validating the mainnet. This means more time on the drawing board, effectively encouraging developers to have a more finished product upon the launch of their subnet.
It will also help with enhancing the decentralization of the platform. Upon approval of the proposal, subnets will be granted more autonomy in terms of certain settings that they would like to be implemented.
In exchange for the removal of the mainnet validation, subnet validators will instead validate the P-chain (platform chain). This will ease resource use, making resource allocation more efficient.
The proposal will have an overall positive impact on the platform. Lowering costs and resource requirements for developers will help bring in new devs to build on Avalanche, enhancing the platform for users.
AVAX Downtrend
Although the token has been riding the slide downward since the start of the year, AVAX bulls seemed to have found the perfect support for a possible breakthrough.
The bulls seemed to have settled around the $26~$29 range. This support and ceiling boasts strengths for both the bulls and the bears alike. However, the bulls have a major advantage on this position.
Although the market has corrected itself to a more sustainable level, major cryptocurrencies like Bitcoin and Ethereum are in the position to burst upward pulling the market along with them. AVAX, with its high correlation with Ethereum, will follow the general market trend once bearishness settles down.
However, macro-economic factors will affect the major tokens which will either help or stifle value growth within the market. AVAX bulls should then wait and further consolidate their current position. Once the opportunity presents itself, the token has the potential to reach $34 in the medium to long term.
Featured image from Pexels, chart from TradingView