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Avalanche (AVAX) vs Cardano (ADA): Which Is The Better Investment?

Cardano and Avalanche are both fighting to deploy the best smart contracts in the cryptoverse. These two platforms are considered Ethereum Killers because they both outperform Ethereum’s transaction and confirmation speeds.

I’ll compare them in this article, and let you know what I personally think about these two projects, trying to give you a better understanding of Avalanche and Cardano.

The better investment is Cardano. It is less risky than Avalanche because of its high market cap and established position in the market. Not to mention the creator co-founded Ethereum. Avalanche is a better trading opportunity and has higher potential returns than Cardano.

In this article, I will compare the similarities and differences between Avalanche and Cardano, as well as their self-purpose within the world of crypto. Through research and logic, my personal consensus on which one is the better investment will be solidified in the end.

What Are Cardano And Avalanche?

Avalanche functions as a trifecta blockchain platform made for decentralized apps (Dapps) and has promised to be 100 times faster than Etherium. The founders and team members worked hard to achieve the status of CONFIRMING a smart contract in under 1 second and have goals of becoming the most popular option around. Under a second – that is fast!

Besides being another decentralized platform, their coin, AVAX, can be staked with annual rewards of up to 12%. And if you want to stake short term, the minimum is only 2 weeks.

They also provide custom blockchains to solve the dilemma of decentralization, security and scalability by designing THREE blockchains: 1) X-Chain, 2) C-Chain, and 3) P-Chain. And, they all work together (interoperability) to address these problems (also known as the blockchain trilemma).

Cardano brings the word community, a tries to leverage blockchain technology to better the world. The technology they develop goes through meticulous peer-reviews before any major ideas are approved. This will help maintain a stable platform for smart contracts and Dapps to reveal.

Cardano is a proof-of-stake (PoS) platform, one of the largest projects that successfully use such a consensus mechanism to secure the blockchain. Along with that power, they declare positively restore faith in the global system.

Cardano founder, Charles Hoskinson said: “It actually does the things that we’ve always wanted to do in cryptocurrencies, which is build a financial operating system for people who don’t have one, one that actually can compete with a global financial system.”

ADA is the native token to the transcendental organization that Cardano seems to be. It plays as a peer-to-peer cryptocurrency as well as provides rewards for participants involved in the network through staking.

FUN FACT: ADA was named after the first recognized computer programmer, Ada Lovelace. And Cardano is the name of a famous Mathematician.

Oh, by the way:

I have a free newsletter you can sign up to where I send out technical analyses on Ethereum from time to time; check it out:

How Are Avalanche And Cardano Similar?

  • OPEN-SOURCE. Both are open-source platforms dedicated to decentralized advancement.
  • SMART CONTRACTS. Each project focuses on smart contract functionality and efficiency.
  • MULTI-USE. They are both cryptocurrencies with functioning ecosystems: securing the network via staking, payment of things like gas fees, governance participation, Dapps, smart contracts, and peer-to-peer transactions.
  • CONSENSUS. Both use PoS for blockchain consensus, which is used in decision-making for the greater good. (Avalanche also uses a DAG protocol in combination with PoS)
  • INTEROPERABILITY IDEALS. AVAX and ADA both understand the importance of blockchains co-existing together and eventually all being interoperable.

How Are Avalanche And Cardano Different?

  • SPEED. Avalanche has much faster speeds at 4,500 transactions per second. And, with stronger CPUs, up to 20,000 tps; Cardano is lass advanced in this area, with only 230-260 tps.
  • LAYERS. You can only run smart contracts on Cardano. With Avalanche, you can run several blockchains on it in addition to smart contracts.
  • SUPPLY. AVAX has a max supply of 720 million while ADA has a max supply of 45 billion!
  • MARKET CAP. Cardano ranked in the top 10 spots on coinmarketcap consistently while Avalanche has yet to slide its way in as of October 2021.

Suggested reading:

Avalanche (AVAX) vs Solana (SOL): Which Is The Better Investment?

Cosmos (ATOM) vs Cardano (ADA): Which Is The Better Investment?

Can Cardano (ADA) Reach $1,000?

Tokenomics And Price History Of Avalanhe And Solana:

Let’s scan the individual tokenomics on these awesome crypto projects!

CARDANO (ADA)

  • Supply Cap:45 million
  • Token: ADA. 16% went to original founders and the remaining 84% is up for grabs amongst investors
  • Incentives: Cardano’s fundamentals allow investors earn rewards by running their own stake pool or by contributing their stake to stake pool run by someone else. Over 70% of the supply is currently staked.
  • Inflation: Aiming to become a deflationary asset by 2030, ADA is inflationary at a rate of 5.7%. However, it will decrease to eventually 0.9% per year up until then:
Cardano (ADA) inflation

AVALANCHE (AVAX)

  • Supply Cap: 720 million
  • Token: AVAX. 60% of tokens are for public and staking opportunities. When a user transacts, the amount is burned, increasing the scarcity, thus value.
  • Incentives: Staking rewards up to 11.57% with a minimum of two-week lock up.
  • Inflation: Low yearly inflation in comparison to other competitors such as DOT (10% yearly)

Cardano launched in 2017 and showed a decent pump initially, but then consolidated sideways for a lengthy time (a good thing). Then years later, as it became stronger and developed a household name in the community is began to grow–then the pumps were plentiful and sustained ultimately.

Avalanche is a 2020 baby. Only 5-6 months it made some huge peaks to then curl down several months in 2021–then some major pumps. It’s more volatile than ADA, naturally. 

Future Outlook Of Avalanche And Cardano:

What is the future of cryptos? No one really knows, but I’m looking forward to it.

With their profound tri-blockchain technology and speeds, Avalanche could take Ethereum’s place…but will it take Cardano’s place or will they co-exist? Cardano has a solid track history and is founded by THE Charles Hoskinson! How could ADA ever lose?

I know! So many questions and answers to consider for these competing coins.

When we look at AVAX founders, there is a deep history in the crypto space too. Co-founder, Emin Gün Sirer, worked on bitcoin and Ethereum solutions and actually created his own peer-to-peer cryptocurrency concept 6 years prior to bitcoin. This makes me excited because veterans have a lot going for themselves and will avoid newbie mistakes. I can imagine that Avalanche will just keep breaking speed records.

ADA has the potential to get to $8-$12 at the end of this bull run, but of course, that has a lot to do with how good ol’ bitcoin is feeling. I don’t see it going too much higher for quite some time due to its huge supply of 45 billion. Slow and steady makes a strong coin.

AVAX price prediction…hmm it was birthed in 2020 and has gone from $3 to $50 to $12 and to $76. I think I’ll save myself from the inevitable embarrassment of trying to predict such a volatile beast.

All of these factors can help draw some…

Conclusions:

Which one’s a better investment? In my crypto opinion, I would have to go with CARDANO because of three reasons:

  1. Charles Hoskinson was a co-founder of the Ethereum Network! He knows the intricacies that made ETH work and the flaws that came with it.
  2. ADA market cap has been ranked higher for an elongated time, creating more stability compared to other coins
  3. The community is strong and I mean really strong. I have listened to numerous Hoskinson interviews and a plethora of info-heavy ADA documentaries and it all leads to one thing: Making a positive change for humanity. That stands for something powerful.

Will I be investing in both? It is always good to spread your risk, so I will own bags from both. That said, my ADA bag will be heavier than my AVAX bags for the time being. But Avalanche has my eye on them with all the THREE-BLOCK-JAZZ.

That’s it. I hope you learned some important things about ADA and AVAX. It is always a good idea to get a better understanding of cryptos before you invest. Mitigate the risk and please invest wisely.

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