The cryptocurrency market will soon be worth $3 trillion.
Yep! And chances are, you are looking for a stake in this growing industry; (excuse the pun). But with new blockchains and currencies emerging almost every year, it is becoming increasingly difficult to know which is a good investment.
Newer blockchain networks, Solana and Avalanche are disruptors changing the financial landscape.
If you are no stranger to cryptocurrencies, then chances are, you have heard of Ethereum; the second biggest network after Bitcoin. Well, these two are Ethereum killers, and with good reason.
But now the debate emerges, “AVAX vs. Sol, which is better?”
Below we have outlined the major differences between these two networks. Keep reading to learn which network is worth your next investment.
What Is AVAX?
Before breaking down the differences and decoding the ultimate question of Avalanche vs. Solana, let’s first expound on what these two are.
Avalanche (AVAX) is an open-source network that facilitates the use of smart contracts for blockchain projects. The birth of Avalanche in 2020, came as an answer to decentralization on a global scale. The Avalanche consensus protocol has three interoperable blockchains: X-Chain, P-Chain, and, C-Chain.
It came with the promise of higher security and faster transactions at low fees.
What Is Solana?
Much like Avalanche, Solana is a layer-1 digital asset that entered the market with the promise of the fastest transactions at the lowest fees, with costs close to zero.
Solana, the brainchild of Anatoly Yakovenko, was launched in 2017, as a solution to the speed question in crypto blockchains.
When platforms like Ethereum were only processing 15 transactions per second, Solana achieved 65,000 transactions per second. But that is not the full dream. Solana hopes to operate a decentralized network that completes transactions at the rate of centralized networks; 710,000.
What Are the Similarities in Solana and Avalanche?
What exactly makes these two cryptocurrency platforms so similar?
In the age where over three million results load in less than a second on Google, or where 2-minute noodles have become dinner staples, speed plays a vital role in our decision-making. Both Avalanche and Solana are faster than most currencies on the market. Avalanche can process 4 500 transactions per second while Solana processes 65 000 transactions per second.
2. Open-source Networks
Both networks are open-source platforms; meaning anyone can make modifications to the source code. This allows for an effective system that can support decentralized apps (DApps).
3. Public Validators
On both networks, anyone can become a validator, meaning they take up the task of verifying transactions on their particular network. But some significant commitments come with validating on either networks.
For example, every validator must stake some of their coins to have the chance of voting on the next block. Each network has its own coin requirements. But if the validator is offline, the network seeks a different validator and the former will lose their stake.
What Are the Differences Between Solana vs. Avalanche?
There are several disparities in the two networks that set them apart in the crypto ecosystem. Keep reading to see which one best suits your needs.
Solana uses a dual protocol of both proof-of-Stake and the much newer proof-of-history protocol which ensures that transactions are streamed to validators in real-time.
But Avalanche uses only the proof-of-stake protocol.
Avalanche uses three different interoperable blockchains, the X-Chain or Exchange chain, the P-Chain which is also the Platform Chain, and the C-Chain or Contract chain. While Solana is not as flexible with just one, limiting the interoperable nature of the blockchain.
3. NFT Marketplaces
You guessed it, NFT stands for Non-Fungible Token(s). Both Solana and Avalanche have pretty good NFT systems at differing values.
Avalanche has a fixed number of 200 NFT collections while Solana has a total of 2404 collections.
Global Marketplace Performance
Though both currencies are Ethereum competitors, they currently occupy very different positions on the global market. Live reports place Avalanche in 12th place with the buying price ranging between a low of $32,52 and an expected high of $50,35. The current trading volume is $1,660,088,642.
Solana, however, is just enjoying continued success, soaring in 8th place, at a buying price ranging between $61,46 to an expected high of $73,76. Its trading volume stands at $3,120,379,892.
But both cryptocurrencies have seen slight dips in the past week.
Which Platform Best Supports DeFi?
The major focus of cryptocurrencies is decentralization. They thrive on a system that cuts out the control of traditional financial institutions. That is what sets crypto apart. And this system is called decentralized finance or DeFi.
So which network best supports DeFi?
Avalanche has a total value of $10 Billion while Solana has only 7,2 Billion locked in DeFi.
Future Projections of Avalanche
AVAX is currently having a tough time in the market. In the past month, it saw a decline of over 40%, lowering the value significantly from what it was at the beginning of the year.
But most analysts are hopeful that the coin will soon recover.
Future Projections of Solana
Though doing slightly better than its opponent, SOL is also trying to survive the market. In just the last week, it has dropped by 30%. And this puts it at a 45% loss since its best performance in November 2021.
Though SOL is struggling to recover, market predictions put it at an increased value of $211,074 by the end of the year.
Where to purchase AVAX and SOL?
There are several platforms on the internet you can visit once you are ready to make your investment. Both SOL and AVAX are available on platforms like Coinbase and Binance
Which Currency is Worth Your Investment?
So, what is the conclusion in the Avalanche vs. Solana debate? There really is no one direct answer.
Both currencies are deemed best for long-term investment and are both lightning fast. But they are both struggling to recover in the global market. The real question shouldn’t be, “which is better?” But rather “which currency best meets your investment needs?”
Cuckcash.com has been decoding complex crypto topics since 2020.
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