Fantom vs AVAX
Two of the most promising and high performance chains go head to head. We dive deep into transaction speeds, transaction fees and more to see how the two blockchain stack up against each other and if one is better than the other?
- Both Fantom and Avalanche are layer 1 blockchains
- Avalanche is built for scalability and security
- Fantom is built for its speeds and low transaction fees
- Both Fantom and Avalanche are EVM compatible
What is Fantom?
Fantom is a decentralized layer 1 blockchain built for its speed and low transactions costs cooped with high level of security and its EVM compatibility which allows Ethereum developers to deploy dApps with ease.
Fantom recently published their earnings and financials which shows that the company has 30 years worth of runway in their treasury which means that Fantom has 30 years worth or operating costs covered. This is huge considering other popular blockchains such as Solana have around 3 years.
Fantom boasts transaction speeds of up to 10,000 transactions per second which places it up there with some of the fastest blockchains on the market. Coupled with their impressive transactions costs of less than $0.01 you can see why Fantom is becoming increasingly popular especially in the DeFi space.
During the 2020/21 bullrun Fantom saw an impressive $8 billion TVL (Total value Locked) which may be lower than Avalanches however compared to the marketcaps of both Fantom and Avalanche, Fantom had a much higher Mcap/TVL ratio.
Fantom TVL via DeFiLlama
The FTM token is Fantoms native token used to pay fees on the network, for governance and can be used to stake in validators to help the network perform and stay secure. The FTM token can also be used for general payments.
What is AVAX?
Avalanche is a decentralized layer 1 blockchain that uses its proof of stake (POS) consensus mechanism to achieve high transaction outputs and low transaction fees. Built for its scalability Avalanche uses side chains to achieve high transaction outputs as high as 4,500 transactions per second.
Similar to Fantom, Avalanche is an EVM compatible blockchain which allows developers who have built on Ethereum to also deploy their dApps on Avalanche with ease. Due to this Avalanche very quickly built a thriving DeFi ecosystem which during 2021 had an impressive $11.9 billion TVL (Total Value Locked) which placed it in the top five largest blockchains by TVL.
AVAX TVL via DeFiLlama
Avalanche uses what are called subnets as part of its complex operating platform which users can create that can operate using their own set of rules, similar to how Polkadot uses parachains.
Avalanche is a fairly complex blockchain which enables it to offer such high performance and security. To add to the complexity of it all Avalanche actually has three chains:
Think of the X-Chain as the main Avalanche chain where assets are created and traded.
The C-Chain is where Avalanche creates smart contracts and deploys them, since this chain is EVM compatible developers from Ethereum can easily deploy smart contracts here.
The P-Chain is where subnets are hosted and also the chain where Avalanche validators are created.
AVAX is the native token of the Avalanche blockchain and can be used for a handful of things such as staking to secure the Avalanche network and for paying the transaction fees when using the blockchain.
Is Fantom Similar to Avalanche?
Fantom and Avalanche have a lot of similarities in the sense that they are both layer 1 blockchains and offer fairly similar benefits such as high transaction speeds and low transaction fees.
The way that the two blockchains operate are different even though they are both based on a proof of stake consensus mechanism. While Fantom uses a more traditional proof of stake system Avalanche uses a slightly altered hybrid version to fit around their three chains.
Is Fantom Better than AVAX?
It is always hard to say which blockchain is better than the other and there will always be people that disagree with your choice, especially when it comes to two that are so close in their performance abilities.
Performance wise both Fantom and Avalanche are very similar, both offering transaction speeds in the ranges of 4,000 plus transactions per seconds and transaction fees as low as $0.01.
As far as investment goes if we look at what multiplier each token offers back to its all time high we can see that Avalanche is currently trading at $13 with an all time high of $144 which gives Avalanche roughly a 10x back to all time high.
AVAX Price via CoinGecko
As for Fantom, it is currently trading at $0.24 with an all time high of $3.46 which gives Fantom roughly a 13x back to all time high.
If you are betting on both tokens reclaiming their all time high then we can see that Fantom has more opportunity for bigger returns. Match that with the 30 years of runway that they currently have in their treasury and Fantom could be the safer bet here.
To Wrap It Up – Fantom vs AVAX?
By now you should have a rough understanding of how both blockchains operate and where they perform the best. If you haven’t made up your mind yet on which you would like to use, why not try to use both? See how it performs and see if you can imagine it onboarding millions of new users in the future.
With Fantom having such a huge treasury and generating steady income I can see Fantom being around for a long time, the same can be said about Avalanche with its huge TVL and DeFi community.
As always this is the wild west of crypto so b e sure to do your own research and remember that anything can happen!