According to reports, the Bank of America (BofA) has been impressed by Avalanche’s subnets and has been openly praising the protocol’s scaling capabilities.
Avalanche A BofA Favorite
In a research note released to its clients, the BofA has been singing praises of the smart contract platform, claiming that Avalanche’s subnet feature is the driving force behind the multitude of projects (more than 380 to be exact) that have been built on the platform. This appreciation is quite meaningful for Avalanche, as the multinational investment bank is the second-largest banking institution in the US and the eighth largest bank in the world.
The research note was put together by a team of analysts led by Global Crypto and Digital Asset Strategist Alkesh Shah, and published on December 10, to keep clients and stakeholders well informed. According to its contents, the Avalanche subnets enable validation at around 4,500 transactions per second, which is also at much lower costs than competing blockchains.
Understanding Avalanche Subnet
A subnet is a dynamic set of validators collaborating to achieve consensus on the state of a set of blockchains, where each is validated by exactly one subnet. To become a member of the Subnet called the Primary Network, which validates Avalanche’s built-in blockchains, users must stake Avalanche tokens. Now since all members of all other subnets must also be a member of the Primary Network, all validators of all blockchains must also validate Avalanche’s built-in blockchains and stake AVAX tokens.
The note also highlighted that Avalanche’s total value locked (TVL), which is the value of tokens held in DeFi protocols, has shot up by 6255% since August, with a monthly increase of 21%. Another significant mention was the Deloitte partnership, which was established to develop a new disaster recovery platform using the Avalanche blockchain to assist state and local governments. BofA’s research highlighted this strategic alliance as a prime example of how large businesses could leverage blockchain tech to build efficient and low-cost systems.
AVA Labs X Deloitte Partnership
In fact, Avalanche had been reaching new heights even before news of the Deloitte alliance broke. Just last week, the crypto surged from $84 to $146. The Deloitte partnership is just adding more momentum to the growth surge. $AVA has overtaken both Dogecoin and Shiba Inu to grab the 10th position in the worldwide list of cryptos with the largest market cap. Industry experts are quite pleased to see a cryptocurrency with layer 1 blockchain and fast and low-cost transactions move ahead of the meme-based tokens.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.