Solana vs Avalanche – Is AVAX Better Than SOL? 

Ethereum has been dominating the altcoin market for years. Just like there are no real Bitcoin competitors among cryptocurrencies, ETH has been the most valuable option among altcoins. Ethereum also features the most popular smart contract network for dApps. But its problems with scalability and speed led to many projects trying to offer a better alternative. That’s how Solana and Avalanche entered the market with its SOL and AVAX tokens.

These two platforms proved to be major Ethereum competitors that keep improving. Many reliable exchanges offer an AVAX vs SOL comparison and fast conversion. But is this trading pair the right option, and which currency is a more viable investment?

AVAX is currently in the top 20 of the crypto rankings, with a market cap of around $5 billion. A single token is worth approximately $18, although back in November 2021 its value was all the way up to $146. Solana has even more impressive statistics, with its historical high being $260. The current SOL token value is $24, while the currency’s market cap is around $8 billion. That’s enough to put it ahead of AVAX in the crypto rankings. But is converting Avalanche to Solana tokens the best move? Keep reading to learn more about these two platforms and their respective tokens!

What Are Avalanche and Solana?

Avalanche is an open-source blockchain platform for decentralized apps launched in 2020. It utilizes smart contracts and supports launching Ethereum dApps on its network. The idea is to offer a more scalable and faster solution to dApp software developers.

The unique thing about Avalanche is that it has three integrated blockchains – Contract (C), Platform (P), and Exchange (X) chain. The platform uses AVAX as the native currency, and it’s among the assets to trade on the X Chain.

Solana is another Ethereum alternative launched in 2020. Its primary purpose is to serve in building decentralized apps. It utilizes smart contracts and a hybrid consensus protocol to validate transactions. SOL is the platform’s native currency, and it was launched along with the network.

How Are Avalanche and Solana Similar?

The obvious similarity is that they are both blockchain platforms using specialized native tokens. Some other resemblances include the following:

• Hosting decentralized apps. At their cores, Avalanche and Solana are decentralized and open-source blockchains. That makes them ideal for DeFi and other dApps.
• Scalable solutions compared to Ethereum. Both projects focused on scalability as they aim to secure fast transactions and deal with congestion that often happens with ETH and BTC transactions.
• Multiple uses. Although using the tokens to make their respectable platforms work is the primary purpose, that also covers gas fees, staking, governance qualifications, etc. You can even trade coins and perform P2P transactions.

How Are Avalanche and Solana Different?

Here’s a deep dive into both platform’s specifics:

• The number of chains used. Unlike Solana, which is comprised of a single one, Avalanche has three chains.
• Better interoperability by Avalanche. It’s because it shares info across the three blockchains used, while Solana doesn’t support this feature.
• Transaction speed. Avalanche is fast but slower than Solana. It processes about 4.5K transactions each second. Solana takes that number to 50,000 and is capable of finalizing a single transfer in less than 0.5 seconds.
• Consensus mechanism. Solana utilizes a mixture of PoS and PoH, while AVAX works based on the DAG-optimized protocol.

So, Which Is the Better Bet?

Both currencies seem to have a great future ahead of them, especially if the crypto market maintains the current positive trend. Each platform has its advantages, and you can’t deny it’s exciting that Avalanche is the first smart contract platform that confirms transactions in less than a second. The developers did a cool thing and made great progress with this achievement.

As for Solana, it secures lightning transaction speeds while keeping the fees low. It’s an excellent deal to consider this token as a smart investment. Before you do, check out https://godex.io/versus/hnt-vs-sol to learn more about the differences between Helium and Solana. Each trading decision should only be yours, and the best advice we can give you is to get as much information as possible before choosing the currency to invest in!