Cryptocurrency

Solana

Shiba Inu

Avalanche

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 <p class="paragraph">In the speculative <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>, the asymmetry between fundamental aspects and the <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>’s perception of value is what creates opportunity. Cryptocurrency investors can benefit from finding asymmetries and positioning accordingly.</p>
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 <p class="paragraph">Interestingly, Avalanche (AVAX) has one of the largest Total Value Locked (TVL) in DeFi, with a suggested asymmetry to its market capitalization. In particular, it gets stronger when comparing Solana’s (SOL) higher market cap and lower TVL.</p>
 <p class="paragraph">It is important to understand that value investing involves many nuances, and investors must consider multiple factors when fundamentally evaluating projects. However, Finbold picked TVL as a benchmark to provide insights on a possible value asymmetry in the cryptocurrency <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a>.</p>
 <p class="paragraph">In this context, <em>TheCoinPerspective</em> shows that AVAX would be priced at $66.71 if Avalanche had Solana’s $24.4 billion <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> capitalization. This would result in an upside of 222%, considering a price of $20.75 per AVAX by press time.</p>
 <figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="956" height="456" src="https://cdn.thebittimes.com/images/2023/11/25/09caef80345da831b9c48e5ede24ca97.webp" alt class="wp-image-139536" srcset="https://cdn.thebittimes.com/images/2023/11/25/09caef80345da831b9c48e5ede24ca97.webp 956w, https://cdn.thebittimes.com/images/2023/11/25/09caef80345da831b9c48e5ede24ca97.webp 300w, https://cdn.thebittimes.com/images/2023/11/25/09caef80345da831b9c48e5ede24ca97.webp 768w" sizes="(max-width: 956px) 100vw, 956px">
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   Avalanche (AVAX) vs. Solana (SOL) market cap. Source: <em>TheCoinPerspective</em>
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 <h2 class="wp-block-heading" id="h-avalanche-and-solana-s-tvl-to-measure-market-cap">Avalanche and Solana’s TVL to measure market cap</h2>
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       <h3 class="font-bold leading-6 " id="is-it-too-late-to-invest-in-solana">Is it too late to invest in Solana?</h3>
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 <p class="paragraph">The two competitors are aiming to meet a similar demand for layer-1 blockchains to Decentralized Apps (DApps), Decentralized Finance, and Web3. Therefore, we can use the total value locked in Avalanche and Solana to spot potential asymmetries on the <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> cap.</p>
 <p class="paragraph">Solana’s TVL surged by 73.19% in one month to $620.2 million, giving it the 8th highest value, according to <em>DefiLlama</em>. Notably, Avalanche still has a higher $652.17 million TVL for a smaller monthly growth of 22.37%.</p>
 <p class="paragraph">This means that investors are locking $32 million more value in the Avalanche ecosystem of 346 protocols than in Solana’s 115.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="446" src="https://cdn.thebittimes.com/images/2023/11/25/7d529563e7f64c268d6e45d250d559e0.webp" alt class="wp-image-139537" srcset="https://cdn.thebittimes.com/images/2023/11/25/7d529563e7f64c268d6e45d250d559e0.webp 1024w, https://cdn.thebittimes.com/images/2023/11/25/7d529563e7f64c268d6e45d250d559e0.webp 300w, https://cdn.thebittimes.com/images/2023/11/25/7d529563e7f64c268d6e45d250d559e0.webp 768w, https://cdn.thebittimes.com/images/2023/11/25/7d529563e7f64c268d6e45d250d559e0.webp 1536w, https://cdn.thebittimes.com/images/2023/11/25/7d529563e7f64c268d6e45d250d559e0.webp 1572w" sizes="(max-width: 1024px) 100vw, 1024px">
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   Total value locked for each chain. Source: <em>DefiLlama</em>
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 <p class="paragraph">From another perspective, AVAX has $16.81 billion less capitalization than SOL, with a $7.59 billion <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> cap for the former. Essentially, Avalanche has an 11.75 <a rel="noopener noreferrer nofollow" title="market" href="https://thebittimes.com/tag/market.html">market</a> cap for each TVL, while Solana has 39.88 MCap/TVL. Looking at this metric alone, AVAX could be 3.4 times cheaper than SOL at the time of publication.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/what-if-avalanche-avax-had-solana-s-sol-market-cap-tbt71593.html">https://thebittimes.com/what-if-avalanche-avax-had-solana-s-sol-market-cap-tbt71593.html</a></p>

What if Avalanche (AVAX) had Solana’s (SOL) market cap?

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