Say Hello to AVAX: The Token Behind Avalanche’s High-Speed Blockchain

AVAX is the native utility and governance token of Avalanche, a smart contract platform built for speed, scalability, and low transaction costs. Launched in 2020 by Ava Labs, Avalanche is one of the most advanced Layer 1 blockchains in the crypto ecosystem, rivaling Ethereum with its unique three-chain architecture and modular subnet capabilities.

By using AVAX, users can interact with decentralized apps (dApps), launch custom blockchains, and secure the network through staking, all while paying minimal fees.

Avalanche was the first blockchain to finalize transactions in under two seconds while remaining fully decentralized. Its consensus mechanism, based on repeated random sampling and probabilistic validation. It was developed by a team of researchers led by Emin Gün Sirer, a former Cornell professor and early voice in the blockchain space.

What Does AVAX Do?

AVAX is the lifeblood of the Avalanche network. It fuels all on-chain activity and ensures the network remains fast, decentralized, and secure.

With AVAX, you can:

• Pay for transactions: Use AVAX as gas on all Avalanche chains, fees are burned to reduce supply.
  
  
• Stake to earn rewards: Help secure the network and earn passive income. Validators require 2,000 AVAX; delegators can stake with as little as 25 AVAX.
  
  
• Create subnets: Use AVAX as collateral to launch custom blockchains with their own rules and validators.
  
  
• Participate in governance: AVAX holders vote on upgrades, staking parameters, and fee structures.
  
  

Why Is AVAX a Big Deal?

Avalanche isn’t just fast, it’s designed differently. Instead of one chain doing everything, Avalanche splits its responsibilities across three specialized chains, allowing for higher throughput without sacrificing decentralization.

Here’s why AVAX stands out:

• Avalanche supports up to 6,500 transactions per second, significantly faster than Ethereum.
  
  
• Its three-chain architecture (X-Chain, P-Chain, and C-Chain) separates execution, staking, and contract deployment.
  
  
• The C-Chain is EVM-compatible, allowing Ethereum-based dApps to run seamlessly.
  
  
• All AVAX fees are burned, making it a deflationary asset by design.
  
  
• It supports major protocols like SushiSwap, Aave, Curve, and TrueUSD.
  
  

AVAX Supply Snapshot

As of July 16, 2025 (source: CoinMarketCap):

• Total Supply: 720,000,000 AVAX (fixed cap)
  
  
• Circulating Supply: ~422,275,285 AVAX
  
  
• Max Supply: 720,000,000 AVAX
  
  
• Deflationary mechanism: All transaction fees paid in AVAX are permanently burned
  
  

Unlike some tokens with elastic or inflationary supply, AVAX is capped, giving it a built-in scarcity model.

How Avalanche Works

Avalanche uses a unique three-chain design:

1. X-Chain: Handles asset creation and AVAX transfers
   
   
2. C-Chain: Hosts smart contracts, fully EVM-compatible
   
   
3. P-Chain: Coordinates validators and subnet creation
   
   

Each chain uses a consensus model tailored to its function. This separation allows Avalanche to scale horizontally and avoid congestion issues that affect single-chain Layer 1s.

Avalanche also supports subnets — independent blockchains that can run custom rules while still connecting to Avalanche’s core security and finality layers. Subnets can be used for private blockchains, gaming ecosystems, regulatory-specific chains, and more.

Where Can You Trade AVAX?

AVAX is listed on all major centralized and decentralized exchanges, and is also available to trade directly through the Bitazza app alongside 100+ other tokens.

What Are the Risks?

As with any blockchain project, AVAX comes with a few considerations:

1. Price volatility: AVAX is subject to market swings, which can affect staking returns and subnet costs.
   
   
2. Smart contract risk: While Avalanche is secure, vulnerabilities in dApps built on it can still impact users.
   
   
3. Competition: Avalanche competes directly with Ethereum, Solana, and other Layer 1s. User adoption depends on continued innovation.
   
   
4. Subnet fragmentation: With many subnets operating independently, liquidity and user attention could become siloed.
   
   

Final Thoughts

AVAX is more than a utility token, it’s the engine behind one of the most ambitious blockchain ecosystems in the world. From blazing-fast finality to modular subnet creation, Avalanche is built to support the next generation of dApps, DeFi platforms, and digital economies.

Its capped supply, deflationary model, and multi-chain design make AVAX a powerful asset with long-term potential for developers, stakers, and active traders alike.

Ready to trade? Explore AVAX and 100+ other tokens directly on the Bitazza app.

Want to explore more Layer 1 tokens like AVAX? Head over to our blog for deep dives on your favorite assets.