AVAX Price: Avalanche’s Deflationary Tokenomics and Market Impact
A key factor influencing the AVAX price is its deflationary tokenomics model. Avalanche employs a token burn mechanism where a portion of AVAX used for transaction fees is permanently removed from circulation. As the network grows and processes more transactions, more AVAX is burned, reducing the overall supply.
This deflationary aspect creates a scarcity effect, which can lead to price appreciation as demand for the token increases. As more decentralized applications (dApps), DeFi protocols, and NFT projects are built on