[Avalanche pays premium to incentivize validators, will AVAX surge to $145? 】
Avalanche pays high rewards to validators, which is critical to maintaining network security and ensuring smooth transactions. As a proof-of-stake network that relies on node operators to ensure security and decentralization, Avalanche provides high rewards to validators to maintain a stable node network and meet user expectations.
The network has a market capitalization of over $9.8 billion and ranks in the top 10 for liquidity, surpassing low-cost competitors such as Polygon and Polkadot, according to CoinMarketCap data. Avalanche attracts validators through generous rewards to ensure a sufficient node pool to maintain network operation.
As of December 7, more than 1,539 validators staked more than 248 million AVAX, yielding an annualized return of 7.84%. Avalanche has a staking ratio of 57.11%, with the majority of circulating AVAX used for network security.
While AVAX rewards attract validators, Avalanche documentation states that operating nodes does not require complex hardware. Unlike Ethereum, Avalanche said that staked AVAX will not be slashed or penalized as long as it meets network requirements, which may explain the steady growth in the number of validators over the past three years.
As the number of validators increases, the AVAX price rises steadily, in line with the overall market trend. Currently, AVAX is trading above $26, up more than 200% in the past three months. AVAX is currently trading at a new 2023 high, with the daily chart showing a bullish breakout pattern.
Given the current trend of AVAX, its price could break above $30. If volume grows, this could be the basis for further gains, pushing the price towards $90 or even higher. AVAX peaked at $145 in 2021.
