SOL vs AVAX: What to Invest In?

Crypto adoption is at an all-time high as the world wakes up to the benefits of a decentralized financial system. All pioneers and meme coins have played a huge part in taking crypto mainstream. However, it is the new wave of altcoins, such as SOL and AVAX, that has emboldened the true spirit of decentralization. 

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While both blockchains have high-performance capabilities, SOL and AVAX (their tokens) have had different price trajectories. In this piece, we highlight the investment potential of both to help you decide if a SOL to AVAX exchange is profitable.

AVAX Overview

AVAX is the native token that helps run the Avalanche blockchain. Released in 2020 by AVA Labs, Avalanche is an open-source network trying to address the problem of scalability and efficiency associated with blockchains. 

The Avalanche network offers low latency and high scalability, making it an attractive option for developers of Defi and DEX applications. A look at comparisons such as SOL vs EGLD or any other crypto shows that the Avalanche network addresses a blockchain niche that only some developers are willing to dive into.

Technology

The Avalanche network was built to improve the PoS consensus mechanism used in validating transactions. Avalanche uses a combination of 3 consensus protocols – Snowflake, Snowball, and Avalanche — for its delegated proof of stake mechanism.

The AVAX ecosystem has 3 blockchains — the exchange chain (X-Chain), contract chain (C-Chain), and platform chain (P-Chain) to help reduce the burden on the main network and improve its scalability. 

The Xchain enables users to create and exchange digital assets, while the contract chain helps execute smart contracts. The platform chain helps validators create subnets used for reaching consensus in specialized chains within the AVAX network. 

Price Prediction

AVAX initially traded at $5.3217 before dropping to $2.92 in late 2020. Since then, AVAX has hit a high of $128.78 in 2022 and a low of $8.7 in late 2023. As of this writing, the token is trading at $31, ranking in the top 9 cryptos today. Therefore, AVAX has had its fair share of bull and bear trends since its launch in 2020. 

Crypto experts predict the coin will reach a maximum of $55.51 and a minimum of $45.31 by the end of 2024 before rallying to over $75.56 in early 2025.

Avalanche’s constant burn feature will likely propel the coin’s price to a maximum of $230.34 and a minimum of $188.26 by 2030.

Solana Overview

The Solana network was developed in 2017 — however, the SOL token was launched in 2020. Solana is a web 3.0 infrastructure created to enhance the scalability of blockchain transactions. The network can process over 65,000 TPS. Solana’s architecture, most notably its proof of history (PoH) consensus, allows the network to scale using only one layer.

Being a layer-1 blockchain, Solana is much more affordable to blockchain developers looking to build dApps and run smart contracts on the network. 

The network is run through the SOL token, giving users the right to vote on governance decisions.

Technology 

Solana’s blockchain runs on a hybrid consensus model — Proof of History and Proof of Stake. Validators can verify transactions depending on the number of SOLs they hold through the PoS mechanism. They also earn based on the SOL they stake and their contribution to network maintenance tasks. You can also use the SOL for governance of the platform.

On the other hand, the blockchain uses the PoH consensus mechanism and a concurrent transaction processor known as Runtime to timestamp and verify the validated transactions. The PoH algorithm helps maintain Solana’s security while increasing the network’s scalability.

Price Predictions

Currently trading at $92, SOL has had a remarkable growth in 2023. The token hit its lowest price of $8.9 in late 2022. While the current price is still a long way from its all-time high of $260, SOL has been showing signs of recovery. It currently has a market cap of $39 billion.

Crypto experts predict that SOL’s value will likely expand, with its price averaging between a high of $159.03 and a low of $128.21 in 2024. Forecasts based on deep AI analysis expect the SOL coin to push past the $500 mark by the end of 2028 and hit a maximum of $1,399.23 in 2030.

Avalanche vs Solana: What Is a Better Option?

Solana and Avalanche have been at the forefront of improving the blockchain ecosystem, from achieving high scalability and streamlining smart contracts to speeding up transactions. However, Solana’s transaction costs are low, and the network supports asset tokenization. The average time it takes to validate a block is also less on Solana than on Avalanche. 

Ultimately, the choice between the two platforms will depend on your preferences.

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