To determine the best option for your investment, it’s essential to analyze these cryptocurrencies and define their common and distinct features. They both are open-source projects that offer high credibility for investors. Operations with SOL and AVAX tokens range from staking and payments to peer-to-peer transactions. The scalability of both platforms makes them stand out among other cryptocurrencies.
Yet there are some significant differences, like the speed of processing transactions. We will compare AVAX vs Solana to help you choose the best solution for your investment.
Avalanche Project Overview
On May 16, 2018, the “Team Rocket” developers published an article about the revolutionary blockchain — Avalanche. From the start, they announced their main goal: a faster, greener, and cheaper substitute for an outdated Ethereum.
Avalanche comprises three cooperative blockchains:
- Exchange Chain (X-Chain)
- Contract Chain (C-Chain)
- Platform Chain (P-Chain)
It allows working with other autonomous blockchains and dApps (decentralized applications).
The developers have chosen proof-of-stake as Avalanche’s consensus mechanism. It reduces energy consumption and increases the TPS rate. The developers claim that it is as fast as 4,500 TPS.
The coin-minting model used by Avalanche is exclusive. The token holders can vote on the new coins’ appearance speed. This is regulated as users determine the sum of the bonus given to token holders after they have fulfilled a successful verification.
Transaction fees in Avalanche may vary. They depend on the platform’s current functioning capacity. Moreover, the fee rate is also decided via voting. Avalanche users are eligible to establish the cost of every transaction. All transaction fees are removed from circulation (burned) to make the tokens deficient in the future.
Solana Project Overview
Solana blockchain was announced in November 2017. Its co-founder Anatoliy Yakovenko explained the project concept as a combination of the proof-of-stake and proof-of-history mechanisms. This integration of consensus models resulted in minimal transaction fees and high scalability.
Solana is a layer 1 blockchain with the native token SOL. It is available in fractional amounts called lamports (0.000000001 SOL).
You can’t mine SOL, but you can stake and earn tokens. When staking SOL, you pass the right to verify transactions to the validator. You may lose tokens if the validated transaction fails to meet the system’s requirements. But if staking is successful, the validator will receive new coins. These coins will be distributed between those who have staked, withholding the validator’s fees.
What makes Solana especially attractive is its announced amount of transactions per second. In theory, TPS can reach 65k. In fact, Solana’s website shows an average TPS of 2,000-2,500.
Another blockchain that boasts a theoretical cosmic speed is Fantom. You can read in their white paper about the maximum TPS figure of 300,000. Fantom vs Solana clash is what you will observe in the nearest future.
AVAX vs. SOL: Key Numbers Comparison
Solana and Avalanche have lots of common features, but there are differences:
| AVAX | SOL | |
| Consensus mechanism | Proof-of-stake | Proof-of-history and Proof-of-stake |
| TPS | 4,500 | 65,000 |
| Transaction time | < 2 sec | 0.4 seconds |
| Transaction fees | $0.016 | $0.00025 |
| Number of validators | 1,244 | 2,071 |
| Market capitalization | $4,5 B | $10,4 B |
| Maximum token supply | 720 million | – |
Now you can understand which of them suits you better, the cheaper but tend to inflation Solana, or inflation-resistant, slightly slower, and nearly as cheap as its rival, AVAX.
Choose Your Asset
Both cryptocurrencies have strong and weak points. Solana is less decentralized and more affected by inflation, but it is notably fast and low-cost. Avalanche offers a transparent system where token holders have the right to vote and decide on crucial issues. Yet it can’t offer exceptional quickness.
When you choose your asset, keep in mind what you expect: a long-term or short-term project, your estimated income, and the time you can spend on it. Remember that diversifying your assets has never been a bad idea.
By Amey MyersAmey, an intrepid traveler and avid blogger, roams the world, absorbing diverse cultures, flavors, and experiences. Her writing captures the essence of her adventures, inspiring others to explore. Amey's infectious passion for travel and storytelling epitomizes a life filled with exploration and adventure.
