Crypto projects have different goals, and Avalanche and Chainlink are great examples of this. We can simply describe Avalanche as an Ethereum rival that supports dApp creation. Chainlink is an oracle network that aims to secure the communication of blockchains with off-chain data. It might not be easy to compare AVAX vs LINK, but our guide helps you determine which crypto is stronger!
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Understanding XRP and LINK
Learning more about crypto starts with understanding how it works. Apart from reading expert explanations and opinions, checking forecasts regarding a currency’s value can be important. For example, Jasmy price predictions reveal more about how this coin will perform in the coming years. But let’s return to the focus of our article and learn details about Avalanche and Chainlink.
AVAX Overview
Avalanche is a layer-1 blockchain project built from scratch. Its founders are Kevin Sekniqi, Maofan Yin, and Emin Gün Sirer, who established the Ava Labs Foundation. They officially released Avalanche in 2020, after collecting $42 million during the initial coin offering.
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The network features a distinctive architecture that includes three blockchains: the C-chain (smart contracts and decentralized apps), X-chain (exchanging funds), and P-chain (for staking and becoming a validator). By separating these chains, Avalanche achieves excellent throughout and fantastic scalability.
AVAX is the native token on the Avalanche network. Its value is around $21 per coin, while the market cap is over $8.2 billion. The maximum supply is around 715 million coins, with the circulating supply set at about 395 million as of August 2024.
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LINK Overview
Chainlink is a project that uses Oracles to connect and process on-chain and off-chain data. Chainlink supports smart contracts, and the network uses an Off-Chain reporting consensus mechanism. The idea is to confirm external data before including it on the chain as a smart contract (Data Feed).
Sergey Nazarov and Steve Ellis are co-founders of Chainlink, and they launched it in 2017. LINK is the project’s native token and its total supply is one billion coins. About 608 million are in circulation at the moment. LINK is now worth about $10, and its market cap is over $6.1 billion. Users can trade LINK coins for profits, and there’s also a staking option.
Key Similarities Between AVAX and LINK
Here are some common traits of the two crypto coins:
Purpose and use cases. Both coins have market value and can be a trading asset. They also serve as native coins on their respective networks.
Market adoption. The estimations show that Avalanche has approximately 29.5K active users daily, while Chainlink is nowhere near that number. However, 24-hour trading volumes are similar and usually between $300 and $320 million.
Partnerships and integrations. Amazon Web Services became a critical partner of Avalanche and had a huge positive influence on AVAX. WisdomTree and Cumberland are some other notable institutional partners. Chainlink also has reputable enterprise projects. It partnered with ANZ multi-national banking, DTCC post-trade financial services, and many others.
Key Differences Between AVAX and LINK
Technology and consensus mechanisms. Avalanche is a layer-1 chain, while Chainlink is an Oracle platform. While both use smart contracts, it’s for a different purpose. Both projects feature unique consensus mechanisms that fit their purposes.
Transaction speed and costs. Avalanche has asynchronous block release with no consistency in generation time. It can process up to 4,500 transactions per second. Chainlink takes up to 14 minutes to create a new block, but its speed is above-average and transactions are fast. Both networks offer reasonably low costs.
Ecosystem and community support. Chainlink has over 2,000 projects in its ecosystem and a large community, with occasional meetups and other events. Avalanche has a more impressive ecosystem and a large community that also includes an Ambassador Program.
AVAX or LINK – Which One Holds More Potential?
Although they are different projects, Avalanche and Chainlink share years of existence in the crypto market. There are many Ethereum competitors, but AVAX profiled itself as a potentially more serious rival. Chainlink now competes with Ripple, which also announced decentralized Oracle releases, but it already has an established ecosystem and community that keep it going strong. Ultimately, it seems that AVAX and LINK both have potential, so we suggest analyzing current market patterns and assessing your portfolio specifics when choosing an asset for the next investment.
