Avalanche, a proof-of-stake blockchain, has paid over $275 million in AVAX tokens to incentivize its validators in the past year. Despite generating only $11.5 million in user fees, this significant cost is necessary to secure the network and ensure the confirmation of transactions. By paying validators a premium, Avalanche maintains a robust network of nodes, which is crucial for its users.

The network has a market cap of over $9.8 billion and is currently in the top 10 by liquidity. By offering generous rewards to validators, Avalanche ensures a strong pool of nodes to maintain the network’s operation. AVAX holders can stake their tokens and receive rewards, with over 1,539 validators currently staking over 248 million AVAX and earning a 7.84% annual percentage yield (APY). The staking ratio is at 57.11%, indicating that most AVAX in circulation is used to secure the network.

Avalanche’s documentation states that operating a node on the network does not require complex hardware, unlike Ethereum. Additionally, staked AVAX is not at risk of being penalized by the network, as long as all network requirements are met. This feature has contributed to the steady rise in validator count over the past three years.

While Avalanche expands its validator count, the price of AVAX has also been steadily increasing. It is currently trading above $26, reflecting a growth of over 200% in the last three months. If the price breaks above $30 with expanding trading volume, it could serve as a base for another upward movement, potentially pushing the coin towards $90 or higher. In 2021, AVAX reached a peak of $145.