Solana's main weakness is that it is not Ethereum Virtual Machine (EVM) compatible, which makes bridging money difficult.
- Avalanche has higher Total Value Locked ($1.87B vs $1.42B).
- EVM compatible and can be used with MetaMask.
- Avalanche has a more vibrant DeFi & NFT Ecosystem.
AVAX vs Solana
Many investors have been following the battle of AVAX vs Solana for the second largest EVM compatible blockchain after Ethereum. Both Avalanche and Solana skyrocketed in popularity throughout 2021 & 2022 with hundreds of thousands of users and thousands of Dapps pouring to their ecosystems.
AVAX and Solana are popular because they both offer offer a high degree of security and scalability, but there are some key differences between them.
Is AVAX better than Solana?
AVAX is a better Layer One than Solana because they are a more decentralized blockchain. The Avalanche Consensus Protocol has over 2,000 unique validators securing the network, whereas Solana has under 20 validators.
The hardware to run a node on the Solana consensus algorithm is extremely costly and requires hundreds of thousands of dollars in investment. This make Solana a relatively exclusionary ecosystem with deep centralization risks.
Avalanche vs Solana Transaction Speed
When it comes to Transactions Per Second, Solana has the faster throughput when compared to AVAX. Solana is a significantly faster network than the Avalanche C Chain because it has less number of nodes required to validate transactions on the network.
This highlights the trade-off made by the Solana team as they gave preference to performance, over decentralization. This is in-line with the SOL protocol's focus to build out a DeFi and GameFi ecosystem, which requires a higher throughput.
NFT Marketplaces on AVAX and Solana
Both AVAX and Solana have thriving NFT ecosystems on their native blockchains, with millions of dollars traded every day. According to DeFiLlama, Avalanche has 200 unique NFT collections, while Solana has 2404 unique NFT collections.
Solana has also traded more volume in NFTs than AVAX, with $115m traded in 24 hours compared to Avalanche at $26.49.
Is DeFi better on AVAX or Solana?
The total value locked in DeFi on Avalanche is $10 Billion and Solana's is $7.2 Billion. This means that the liquidity for DeFi is better on Avalanche, creating a better environment for yields.
These liquidity dynamics would ultimately suggest that Avalanche is a better layer one protocol for DeFi Applications than SOL.
Avalanche vs Solana vs Luna
Avalanche and Solana are fundamentally different than Luna because they are Smart Contract Platforms that host a network of applications like GameFi, DeFi or NFTs.
The LUNA blockchain serves a specific use case of being the reserve asset and governance token for the UST stablecoin. This would make Luna an "application-specific blockchain" and Avalanche & Solana a "smart contract platform".
It is difficult to determine whether one cryptocurrency platform is definitively better than another without considering specific factors and requirements. Both Avalanche and Solana are highly decentralized, high-performance blockchain platforms that have their own unique features and capabilities. Comparing the two platforms and determining which is "better" would require a thorough analysis of their respective features, performance, and potential use cases. It's important to carefully research and evaluate any cryptocurrency platform before making a decision to invest or use it for a specific purpose.