Avalanche v Solana – Which one is a better buy?

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Avalanche v Solana – Which one is a better buy?
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An increase in risk perception following Terra’s collapse could lead AVAX to outperform SOL.

key point:

Avalanche is a platform blockchain that can process 4500 transactions per second. While it has a rapidly growing Dapps ecosystem, AVAX’s price has been affected by a correction in the broader crypto market.

Solana is one of the most scalable platform blockchains on the market today. While adoption is growing, SOL prices have been dragged down by the broader market pullback.

While both Avalanche and Solana have performed well in the long term, AVAX may outperform SOL in the short to medium term. This has a lot to do with SOL’s frequent network outages in 2021 and the risk awareness of investors caused by the Terra crash.

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Avalanche (AVAX)

The decentralized application space is on a growth trajectory, and so is the need for startup platforms. Avalanche is one of those companies that has seen rapid growth in a very short period of time. Although it is only three years old, Avalanche now has one of the largest and fastest growing Dapps ecosystems in the crypto space. This is due to its strong core metrics. They include low fees and high throughput – up to 4500 transactions per second. Despite the rapid growth of the Dapps ecosystem, the price of Avalanche has plummeted in 2022. This has a lot to do with the bearish nature of the broader cryptocurrency market.

Solana (SOL)

Like Avalanche, Solana is a Dapps launch platform and has seen significant adoption over the past 2 years. This is due to its scalability and ultra-low fees. Solana can process up to 50,000 transactions per second with fees as low as $0.001 per transaction. In 2022, investment in the Solana NFTs ecosystem will surge, reaching hundreds of millions of dollars.

Which one is better to buy?

Due to the fast-growing nature of their ecosystems, both Avalanche and Solana have significant growth opportunities in the future. Now that their prices have fallen from all-time highs to all-time lows, there’s a chance that these two companies will do well once the broader market picks up. However, Avalanche is more likely to outperform Solana in the next bull run.

This has a lot to do with the history of these two networks. Avalanche has remained stable since its launch. Solana, on the other hand, has suffered several network outages recently, putting its reputation in jeopardy. Following the recent Terra crash, it is likely that many investors will become more aware of the risks associated with the cryptocurrencies they invest in. This could put SOL at a disadvantage relative to AVAX in the short to medium term.

in conclusion

While both AVAX and SOL are good long-term investments, the medium-term possibilities favor AVAX. The collapse of Terra LUNA has boosted investor awareness of cryptocurrency risk, with SOL having more perceived risk than AVAX.



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