Lower Fees & SoFi Growth Fuel AVAX’s Potential, Avalanche’s Big Comeback?

• AVAX’s lower market cap ratio vs. SOL hints at higher upside potential, supported by strong network growth and partnerships.
• Reduced transaction fees and SoFi leadership boost AVAX adoption, positioning it for potential gains in a bullish market.
• Despite past downtrends, AVAX is stabilizing near support levels, signaling a possible rebound amid strong technical fundamentals.

Crypto analyst Kaleo believes Avalanche ($AVAX) has a higher growth potential than Solana ($SOL) in 2024. Looking at the market capitalization (mcap) ratio, AVAX is currently at its lowest compared to SOL. This suggests that AVAX could have more room for upside gains. Furthermore, Avalanche’s network activity, strategic partnerships, and technical advancements indicate a growing ecosystem.

AVAX’s Competitive Edge Over SOL

The Avalanche network has gained traction through various partnerships. Additionally, transaction fees on the AVAX blockchain have decreased considerably after the latest upgrade. Lower fees enhance user adoption and network efficiency. Moreover, AVAX benefits from the expanding Layer-1 (L1) ecosystem, which increases its network effect.

Another major advantage of AVAX is its leadership in social finance (SoFi). The $ARENA decentralized application (dApp) is performing well, attracting users and liquidity. If this growth continues in a bullish market, AVAX could see substantial gains. Consequently, AVAX’s increasing adoption could drive more capital inflows, improving its market position.

Market Trend Analysis: AVAX vs. SOL

Historical price trends highlight AVAX’s current positioning. Since 2021, AVAX has experienced strong rallies and struggled to maintain an uptrend. 2022 price had irregular correction and recovery indicating unstable markets.

Source: Kaleo

In 2023 and 2024, AVAX faced resistance, causing constant drops. Sellers are overwhelmed, driving the asset to decreasing prices. Towards the end of 2024, AVAX hit new lows, reflecting a long-term bearish trend. Early 2025, however, reflects price stabilization at around $0.11, forming a potential support zone.

The technical foundations of AVAX are still solid in spite of this protracted decline. There are now no obvious buy or sell indications, and the market is in a consolidation phase. Price swings have been significantly influenced by volatility, which has fueled speculative activity.