Avalanche (AVAX) is one of the most important new blockchain technologies that is threatening the dominance of Ethereum. Based on three different blockchains, users of AVAX can take advantage of the free AVAX wallet provided by the project and then start purchasing the AVAX cryptocurrency and investing in this exciting new space. The AVAX coin experienced strong growth throughout 2021 (1). The future of the AVAX coin appears to be quite promising with experts predicting a strong likelihood of higher prices in the future. One piece of AVAX coin news which was able to bolster the strength of Avalanche in 2021 was the announcement that the parent company of AVAX, Ava Labs, would be working with Deloitte, one of the largest auditing and consulting firms in the world, to build a blockchain-based platform that will help state and local governments respond to catastrophic events such as natural disasters or public health emergencies.
A direct competitor to AVAX is the ATOM token. For this reason, many might wonder about the difference between AVAX vs ATOM. The ATOM token is the native cryptocurrency of the Cosmos blockchain and is used as the default currency on any platforms built on Cosmos. Just like Avalanche and several other competitors to Ethereum, Cosmos is built on a proof-of-stake model which is more energy-efficient than the traditional blockchain technology that encourages miners to purchase thousands of graphics cards and processors in order to solve complex mathematical problems and thereby mint new tokens. Cosmos has been described as “the blockchain that helps cryptocurrencies talk to each other” (2) because of its focus on connecting all blockchains together into one network much as the Internet has connected a large number of disparate physical and virtual networks. The technical specifications of the Cosmos platform are not as good as Avalanche with transaction speeds coming in lower and fees that are higher than those of the AVAX platform.
A common question that often arises is: is ATOM coin a good investment? Deciding if the ATOM coin is a good investment means weighing these pros and cons along with looking at ATOM crypto competitors such as Avalanche, Polkadot, and Solana.
AVAX vs Elrond
Another common comparison that often arises is AVAX vs Elrond. Elrond (EGLDD) is another cryptocurrency that, along with ATOM and AVAX has been termed an ‘Ethereum killer’ due to its potential to defeat the overall rival of all these smaller cryptocurrencies, Ethereum. Ethereum is currently the number 2 cryptocurrency overall with a market capitalization of over $353 billion (3). Elrond was founded by the brothers, Benjamin and Lucian Mincu with the assistance of Lucian Todea (4). Both AVAX and EGLD share certain similarities in that their primary focuses are on scalability, speed, and security. Both projects also provide lower transaction fees than Ethereum.
A quick check of the AVAX Coinbase shows the price to be currently around $76 (5) while the price of EGLD is now near $147 USD (6). In addition to Elrond, there are several other AVAX competitors that are all trying to win the top spot in the cryptocurrency race. The cryptocurrency world is anything but static and you should always factor in the possibility of change. However, currently, the statistics show Avalanche to be a faster and more affordable blockchain platform to do business on. The Avalanche blockchain can handle transactions in merely 3 seconds. Elrond, on the other hand, takes double the time coming in at 6 seconds. Nonetheless, both blockchains are blazing fast and have a good chance to eat away at some of the dominance of Ethereum.
AVAX vs ALGO
Another comparison worth considering is AVAX vs ALGO. Algorand (ALGO) is a less commonly heard-of blockchain project that was started by Silvio Micali, a professor from M.I.T. in 2017 (7). Considering the comparison of AVAX vs. ALGO, the AVAX token price is vastly higher than the price of ALGO. According to Coinbase, the price of the ALGO token is sitting at around $0.98. One of the things that Algorand has focused on is interoperability with other blockchains. That way, an NFT created on the ALGO platform can still be recognized on another blockchain such as Ethereum. Getting down to the details, both platforms perform very similarly when it comes to speed, with Avalanche being only slightly faster than Algorand (8).
On the other hand, Algorand’s fees are quite a bit lower per transaction making it a more affordable option. The overall utility of Algorand is rated as less than Avalanche but is expected to improve over time (9). Utility is an important factor because it looks at the number of different use-cases that the blockchain can successfully achieve and tries to get an idea of how effective the solutions provided by the project actually are. When looking at other competitors and examining ALGO vs FTM, we see that Algorand tends to win in areas such as speed but loses on the transaction costs (10). Before investing in any crypto, you should do your research and compare other blockchain projects including Algorand vs Solana vs Avalanche.
AVAX vs SOL
AVAX SOL commonly comes up when discussing cryptocurrency options. According to statistics from Coinbase, Solana is the 8th largest cryptocurrency by market capitalization sitting at a total value of over $34 billion (11). With that in mind, you might be wondering to see an AVAX vs SOL breakdown. The native token for Solana is SOL and got into headlines in 2021 when the former First Lady of the United States Melania Trump announced her intention to use the platform for her own NFT (12). More recently, news reports negatively impacted Solana’s PR when in February they suffered the second-largest crypto hack in history (13). The attack was actually done to a special software called Wormhole that was used to connect the Solana and Ethereum blockchains.
When comparing AVAX vs SOL, Solana actually is able to beat Avalanche in terms of having both faster transactions and lower fees. However, this could change in the future. Both AVAX and SOL are open-source projects that are committed to achieving greater speeds and efficiency so that cryptocurrencies and blockchain technology can gain wider acceptance. Avalanche also has decentralization advantages and a large, growing community. If you are interested in investing in a cryptocurrency that has positive prospects such as AVAX and want to know where to buy AVAX, you may be wondering where to buy the coin. The answer is simple, as the token can be easily purchased using any one of the popular crypto exchanges such as Binance (14), BlockFi (15), or Bisq (16).
Cosmos vs Avalanche
The Cosmos cryptocurrency platform is one of the now many thousands of blockchain projects (17) that have been developed in direct competition with the kings of crypto: Bitcoin, and Ethereum. Cryptocurrencies like Cosmos are generally referenced as ‘Altcoins’ and there are several different types of them including Avalanche. Both Avalanche and Cosmos are ‘staking-based’ which means that they use less energy than the more traditional ‘mining-based’ cryptocurrencies that, in the past, have created such high demands for microchips and graphics cards.
When comparing Cosmos vs Avalanche, as previously mentioned, the statistics show Avalanche the clear winner. However, in the crypto universe, there are no guarantees, and things can quickly change. Before investing in any particular cryptocurrency, it is important that you do your research. You should compare and contrast all of the pros and cons for each cryptocurrency before deciding on the one you’d like to invest in. Furthermore, experts tend to recommend the wisdom of diversification if you’re going to be investing a sizable amount as that can help to reduce the volatility of this incredibly volatile environment.
AVAX vs DOT
Polkadot is yet another cryptocurrency that has joined the hunt to overthrow the larger blockchain currencies, and AVAX DOT is another common discussion. The native token of Polkadot is DOT and currently has a price of around $20 USD. Comparing AVAX vs DOT Avalanche has a market capitalization of $18 billion USD (19), while Polkadot’s market cap is around $19 billion (20). If you’re interested in investing in these coins, both are available for purchase on the regular crypto exchanges. Avalanche and Polkadot are both focused on providing scalability, but they have slightly different features. With Polkadot, their unique feature is called parachains and allows for separate-but-parallel blockchains to reduce network congestion (21). On the other hand, Avalanche crypto utilizes a trifecta of blockchains under its hood which it can utilize to provide flexibility and scalability to its users.
When comparing Avalanche's other competitors, Cosmos, vs. Polkadot as an investment, the technical details show Polkadot to have the advantage of transaction speed, but a dramatic disadvantage in the area of fees (22). All of these factors have to be considered before you can decide which cryptocurrencies are the most likely to deliver real profits. It could also come into play when considering a Cosmos vs Polkadot investment.
Cosmos vs Polkadot
Cosmos has received some attention in recent headlines (23) for the fact that its performance has remained strong when other similar cryptocurrencies have fallen. One of the reasons for this is that investors seem to believe that the blockchain technology behind the Cosmos cryptocurrency has real potential to advance the overall decentralized finance space. When comparing Cosmos vs Polkadot, as stated above Polkadot tends to do better when it comes to technical details. Furthermore, Cosmos possesses a relatively smaller market capitalization coming in at around $8.8 billion (24). Market capitalization is a key indicator of whether or not you should invest in a cryptocurrency as it can give you a better idea of the overall value of the cryptocurrency that is more accurate than the day-to-day swings of the specific currency’s price.
Finally, it might be worth analyzing Polkadot vs Avalanche. If we were to compare Polkadot’s performance to that of Avalanche, we see that Avalanche comes in first in both fees and speed, and is able to complete transactions in half the time of Polkadot (25).
Resources
(1) https://www.bitcoinsuisse.com/fundamentals/what-is-avalanche
(2) https://www.fool.com/the-ascent/cryptocurrency/articles/should-you-or-anyone-buy-cosmos-atom/
(3) https://www.coinbase.com/price/ethereum
(4) https://medium.com/crypto-wisdom/all-about-elrond-crypto-project-4d61b3ae8d27
(5) https://www.coinbase.com/price?query=avax
(6) https://www.coinbase.com/price?query=elrond
(7) https://www.fool.com/investing/2021/11/20/3-reasons-to-buy-algorand/
(8) https://coinexams.com/compare/avalanche-vs-algorand
(9) https://coinexams.com/compare/avalanche-vs-algorand
(10) https://coinexams.com/compare/algorand-vs-fantom
(11) https://www.coinbase.com/price
(12) https://en.wikipedia.org/wiki/Solana_(blockchain_platform)
(13) https://www.fool.com/investing/2022/02/03/massive-wormhole-hack-sinks-solana-other-alt-coins/
(14) https://www.binance.com/en
(15) https://try.blockfi.com/
(16) https://bisq.network/
(17) https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/altcoin/
(18) https://www.coinbase.com/price?query=polkadot
(19) https://www.coinbase.com/price?query=avax
(20) https://www.coinbase.com/price?query=polkadot
(21) https://www.gobankingrates.com/investing/crypto/what-is-polkadot/
(22) https://coinexams.com/compare/cosmos-vs-polkadot
(23) https://www.fool.com/investing/2021/12/31/heres-why-arweave-cosmos-and-aaves-cryptocurrencie/
(24) https://www.coinbase.com/price?query=cosmos
(25) https://coinexams.com/compare/polkadot-vs-avalanche