Avalanche and Solana are the most credible competitors in the crypto market, with almost similar blockchain in user experience, low fee structure, and fast transaction rate. Both of the coins were launched in 2020 and successfully created their space in the crypto market.
However, the question still arises of which coin to choose for better profit in the future. Before getting the answer, let‘s just quickly make a comparison of both coins.
Avalanche
The Avalanche’s first mainnet went live in September 2020, based on a highly scalable blockchain that accepts smart contracts. One of Avalanche’s standout features is its support for Subnets, which are customizable networks that use Avalanche validators for security. A Subnet can include one or several blockchains.
Avalanche’s C-Chain is compatible with the Ethereum Virtual Machine (EVM). This makes it easy for developers who work with Ethereum to move their apps to Avalanche and use the popular development tools from the Ethereum ecosystem.
If we talk about the processing speed of the Aave blockchain, it can process 4,500 transactions per second, and transactions on it can reach finality in 0.79 seconds.
The working mechanism of the Avalanche network is Proof-of-Stake, and it has a permissionless network, which allows anonymous users to join the network and validate it. At the time of writing the total number of validators on the Aave network was 1,708, with a total number of active users of 1.31 million.
Avalanche has a vibrant ecosystem of projects, particularly in decentralized finance. According to DeFi Llama, Avalanche is the 7th largest blockchain by total value locked (TVL) in decentralized finance protocols. Currently, Avalanche’s TVL is an impressive $1.4 billion.
After the launch of the Aave mainnet, this coin is performing excellently. Only one outrage is found on the Avalanche network which happened in March 2023, when the X-Chain and C-Chain blockchains temporarily went down.
Solana
Solana is an excellent platform for smart contracts, with a working mechanism of proof-of-stake and a unique Proof-of-History mechanism. This makes it one of the best available blockchains in the present world.
In the real-world scenario, Sol is capable of processing more then 5000 transactions per second, but the Solana TPS has reached as high as 65,000 during testing.
The primary language for the development of the Solana blockchain is Rust. Solana doesn’t work with the Ethereum Virtual Machine (EVM) on its own. However, a project called Neon Labs is creating an EVM-compatible layer for smart contracts on the Solana blockchain.
The active number of Solana network validators is 2,421 and the number of active users is 2.4 million, which is greater than that of Avalanche. A special requirement is available for validators on the Solana network and the daily charges are almost 1.1 Sol coin.
Solana is one of the most active blockchains today. Its decentralized finance ecosystem is significantly larger than Avalanche’s, with a TVL of $6.7 billion. Additionally, Solana is much more popular for NFTs.
Reliability is one of the most criticized points for this network. Till now this network has been out almost 10 times, and the most recent was in February 2024, when the network went down for almost 5 hours.
AAVE VS SOL: Which One is the best?
At the time of writing SOL is trading at the mark of $172, with a market cap of $79.4 billion. It is positioned as a #5 token in the crypto market. The Solana blockchain burnt its token on January 24, 2024, to reduce the total supply in the market. The coin is showing a bearish momentum in a 7-day graph with 26.69% negative in 24-hour volume as per CoinMarketData.
Avalanche is trading for $102 with a market cap of $1.5 billion. It is on the # 54 rank among all the coins. The AAVE 24-hour volume dropped by 23.33% as per coinMarketCap.
While talking about the Blockchain, both of the coins have similar blockchain creation in terms of transaction speed, and fee structure. In popularity, Solana is winning as it is ranked among the top 5 cryptocurrencies and has a higher market cap than AAVE coin.
AAVE Expansion: Exploring Solana with Neon EVM
The group in charge of the Aave lending protocol is thinking about a big plan to expand to the Solana blockchain. This plan, suggested by the Neon Foundation and the Aave Chan Initiative, wants to bring version 3 of Aave’s protocol to Neon EVM, a platform that connects Ethereum apps to Solana. This is a strategic move to extend Aave’s decentralized lending services to a new ecosystem.
Aave has grown a lot, with its third version, Aave v3, now running on ten blockchains. Aave v3 is known for letting users lend and borrow various cryptocurrencies in a decentralized and non-custodial way. Aave has over $5 billion in its lending pools, making it a major player in the decentralized finance (DeFi) world. Most of this money, around $4 billion, is on the Ethereum blockchain, showing how important Ethereum is in the DeFi ecosystem.
The proposed integration of Aave with Solana is a strategic move to expand Aave’s reach. By using Solana’s blockchain, Aave can attract more users and enhance its position in the competitive DeFi market. This proposal could lead to greater interoperability and growth in the DeFi sector.
