Investing in Tier 2 projects (BTC and ETH are considered Tier 1) entails more risks and, at the same time, bigger opportunities. Therefore, it is crucial to figure out which project is better in the AVAX vs SOL competition.
Read on to see which one will perform better in the long run!
AVAX
Avalanche is positioned by the developers as a highly scalable, open-source platform for running decentralized applications, designed for new financial primitives and interoperable blockchain networks.
Quick Overview
Avalanche addresses three issues:
- scalability
- transaction fees
- interoperability
With high throughput, the platform has relatively low commissions. Also, the advantage of the platform is a solution with subnets and custom blockchains, combining security, speed, and compatibility.
Ethereum solutions did not always fit the needs of users, and Avalanche has several blockchain compatibility options for users to choose from. Therefore, recently there has been a transition of decentralized applications — from Ethereum and other networks to a more flexible and customizable Avalanche network.
AVAX acts as a native token within the platform, serving for internal settlements between subnets and payment of a commission. In other words, AVAX is used in all applications deployed on Avalanche.
Here is what the project boasts of for now:
- Market position – #15
- Market cap – $6,276,406,639
- Supply – 284,960,514 AVAX
- ATH – $146
- ATL – $2.79
Expert Price Forecasts
Compared to other cryptocurrencies, the chart of Avalanche quotes does not have pronounced single extremes. This is a positive moment, confirming that investors are actively reacting to positive news about the platform in the short term. The Market Sentiment indicator shows that investors are optimistic in the long run.
The information and analytical platform WalletInvestor predicts that at the end of 2022, the price of Avalanche will be in the range of $28.456 (minimum forecast value) to $61.852 (maximum value).
According to an alternative forecast of the Avalanche rate from the Coin Price Forecast portal, by the end of 2022, the AVAX/USD rate will reach $48.06.
SOL
Solana is a third-generation blockchain that powers many DeFi solutions, including the development of dApps and smart contracts.
Quick Overview
The token of this blockchain grew in 2021 by almost 3,000%. The reasons for that are numerous.
The Burnt.Finance NFT protocol, which runs on Solana, attracted $3 million investments from Alameda Research in May 2021. Solana is also one of the largest blockchains in DeFi when it comes to blocked funds — $917 million.
Solana boasts a large community of over 84 thousand people on Telegram and more than 350 projects launched on its blockchain. According to company representatives, the current throughput of the blockchain is 60,000 transactions per second. In the future, it is planned to be 710 thousand transactions per second. This high transaction processing speed is based on the Proof of History (PoH) solution algorithm and Gulfstream and Turbine data transfer protocols.
At the time of this writing the project of Solana has earned the following stats:
- Market position – #9
- Market cap – $12,603,662,004
- Supply – 348,813,136 SOL
- ATH – $260
- ATL – $0.50
Expert Price Forecasts
According to Trading Beasts, the average price of SOL by the end of 2023 will be $140.7. According to them, in September, the cryptocurrency can cost from $37.3 to $54.9.
Crowd Wisdom believes that the average value of a cryptocurrency will be at a maximum of $150 in 2022. Analysts stress that Solana bottomed out in July, and a gradual rise is now possible. Previously, Crowd Wisdom emphasized in its reviews that developers need to address security issues in order to regain investor confidence.
AVAX vs SOL: Technical Comparison
| Avalanche | Solana | |
| Block time | 0.8 seconds | 0.4 seconds |
| Consensus Mechanism | Proof of Stake (POS) | Proof of Stake (POS) |
| EVM Compatible | ✅ | ❌ |
| Secure Bridging | ✅ | ✅ |
| Transaction Fees | $0.000004 | $0.00025 |
| Blockchain | C-Chain, X-Chain, P-Chain | Solana |
| Minimum stake required | 2,000 | 0.01 |
| Validators | 1,240 | 3,400 |
| TPS | 4,500 | 60,000 |
| Programming language | Solidity | Rust, C, C++ |
Conclusion
The projects are well worth your attention. Some experts even advise investing in both since each of them are market changers. While it is impossible to predict a better performer, it is quite obvious that Solana reached higher highs than AVAX. Whether you are going to convert AVAX to SOL or MCO to NAS, you must consider your preferences, trading needs, budget, as well as the information from experts,r so as not to make hasty decisions.