Standard Chartered analyst forecasts Avalanche could outpace both Bitcoin and Ethereum with its innovative subnet architecture driving unprecedented growth.

Markets

Avalanche’s native AVAX token could experience explosive growth over the next five years, potentially delivering life-changing returns for early investors, according to a prominent financial institution’s latest analysis.

Standard Chartered’s cryptocurrency researcher Geoff Kendrick has initiated coverage on AVAX with remarkably bullish price projections, forecasting a climb from current levels to $250 by the end of 2029—representing a staggering 10-fold increase.

“The unique thing about Avalanche is how it is attempting to achieve scale. Unlike Ethereum or Solana, Avalanche (AVAX) uses a set of subnets, or sidechains,” Kendrick noted in his Wednesday report.

This distinctive architectural approach could be the key driver behind Avalanche’s potential outperformance against market leaders Bitcoin and Ethereum in the coming years, according to the analysis.

Kendrick outlined a series of progressive price targets for AVAX:

• $55 by the end of 2025
• $100 by 2026
• $150 by 2027
• $200 by 2028
• $250 by the conclusion of 2029

The Standard Chartered analyst specifically highlighted encouraging early adoption signs, noting that “one-quarter of active subnets are already Etna-compatible,” suggesting the subnet approach is gaining traction.

December’s network upgrade appears to be catalyzing developer interest, having dramatically reduced the cost of establishing a subnet to near zero. This technical enhancement has already resulted in measurable growth in developer activity on the platform.

With a current market capitalization of approximately $9 billion, Avalanche ranks as the 15th-largest cryptocurrency by that metric and 10th-largest blockchain by total value locked (TVL). This relatively modest positioning compared to industry giants gives it significant room for growth.

“As a result, we see AVAX outperforming both Bitcoin and Ethereum in terms of relative price gains in the coming years, reaching a level around USD 250 by end-2029, more than 10x today’s price,” Kendrick stated.

It’s worth noting that institutional interest in Avalanche was already building before these projections. Prior to December’s upgrade, the Avalanche Foundation raised $250 million in a token sale led by major crypto investment firms Galaxy Digital, Dragonfly, and ParaFi Capital.

As blockchain scalability continues to be a critical challenge for the entire industry, Avalanche’s unique approach through its subnet architecture could position it favorably if adoption accelerates as Standard Chartered predicts.