Fantom (FTM), Solana (SOL), and Avalanche (AVAX) compete to be the decentralized banking standard. Price performance, total value locked, consensus methods, and decentralization will determine the best investment.
All but Solana use Proof-of-Stake (PoS), therefore they share more than they differ (PoH). Learn more about these cryptocurrencies and which one is better to invest in in 2023.
Quantitative Differences Between Fantom, Solana and Avalanche
1.Price Performance.
Year-over-year information may help investors evaluate price performance. The significant connection between Bitcoin and other cryptocurrencies makes year-over-year numbers misleading. In late 2020, investor confidence in cryptocurrencies surged, with some hitting all-time highs early the next year and others waiting until late 2021.
Thus, need to compare the bull market price to the average bear market price from late 2020 to 2022 to assess these currencies’ performance. The following currencies have yielded the best returns since the last bear market:
- Solana: 14,000% (140x)
- Fantom: 10,000% (100x)
- Avalanche: 3,000% (30x)
You can compare Fantom vs Solana to decide where to invest on the Godex website.
2.Calculating Transfer Rates and Costs
Since they are layer-1 networks using Proof-of-Stake consensus techniques, these blockchains utilize comparable technologies (except for Solana, which is based on Proof-of-History, but with a little variation in the method used).
Avalanche or Solana have similar transaction times and costs. Users shouldn’t trust TPS assurances since many networks haven’t been stress-tested for hundreds of thousands of transactions per second.
Solana has 65,000 TPS, whereas Avalanche has 4,500. Unfortunately, the crypto industry is still far from general acceptability when these blockchains demand such enormous transaction volumes. MasterCard and Visa, which power the global economy, have 5,000 and 1,700 TPS.
These alternatives cost a few cents for each transaction, compared to Ethereum’s $20 or $100 for every ERC-20 token flip.
Avalanche blocks in three seconds, Fantom in 1 second, and Solana 400 ms. Solana settles faster than Visa or MasterCard.
Speeds and Fees Top:
- Solana
- Fantom
- Avalanche
3. Decentralization
Proof-of-Stake blockchains are more centralized than Proof-of-Work blockchains because the coins are pre-mined and distributed to a group of insiders who are permitted to become validators and control a large section of the network.
However, PoS blockchain validators indicate network distribution. Decentralized PoS blockchains have additional validator nodes (computers) processing transactions and issuing blocks.
Solana is the most spread with 1,680 validators and block generation. 1,350 validators place Avalanche second. Fantom with 100, are more centralized. Fantom has a validator set nearly 30 times smaller than Solana.
Top: decentralization
- Solana
- Avalanche
- Fantom
Conclusion
Solana, Avalanche, and Fantom share more than they vary. Cheap gas and fast transactions drive their thriving DeFi ecosystems, powered by similar algorithms.
However, Solana seems to be Ethereum’s biggest challenger. Fantom, the most undervalued cryptocurrency, with a $4 billion market cap and a potential ecosystem that follows similar actions to Solana’s chain. TVL and development are growing in the Avalanche ecosystem.
All Layer 1 blockchains use the same technology, therefore the only way to pick one to invest in is to test them.
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