To support this growth, the Avalanche Foundation is offering development incentives through two funds: Retro9000, a $40 million grant fund, and InfraBUIDL, a $15 million fund aimed at AI-related projects.

The recent Etna upgrade, implemented in December 2024, has significantly reduced the costs associated with launching subnets on Avalanche, lowering initial setup costs from $450,000 to nearly zero.

Standard Chartered's analysis indicates that the BTC-to-AVAX ratio will decline significantly, from 3,636 in 2025 to 2,000 by 2029, highlighting Avalanche's anticipated faster appreciation.

This optimistic outlook includes a tenfold increase from current levels, with analysts suggesting that AVAX will outperform Bitcoin and Ethereum in relative price gains.

Geoff Kendrick, the global head of digital assets research at Standard Chartered, forecasts that Avalanche's AVAX could see gradual price increases, projecting it to reach $55 by the end of 2025 and potentially $250 by 2029.

As a result, developer activity on Avalanche has reportedly increased by 40%, with around 25% of its subnets now being Etna-compatible.

Avalanche is also making strides in real-world asset tokenization, with BlackRock's $1.9 billion tokenized fund supporting the network and contributing $52 million to Avalanche.

While Avalanche's transaction fees have become cheaper during periods of low activity, they still remain higher than some Ethereum Layer 2 solutions, which could impact the attraction of new applications.

The ETH-to-AVAX ratio is expected to decline from 73 to 30, further underscoring Avalanche's anticipated outperformance against Ethereum.

Despite currently trading approximately 88% below its peak of nearly $145 in 2021, Avalanche remains a strong contender in the cryptocurrency market, valued at around $7.54 billion.

As of early April 2025, Avalanche ranks as the 15th-largest cryptocurrency by market capitalization and the 10th-largest in total value locked.

In the competitive decentralized finance sector, various blockchains, including Avalanche, are enhancing transaction speeds and lowering costs to attract users.