2 Proof-of-Stake Tokens to Buy Right Now

Here’s why Solana (CRYPTO:SOL) and Avalanche (CRYPTO:AVAX) are two top proof-of-stake tokens investors may want to consider.

| More on:
Businessman with his palm open containing a hologram saying 'Why Invest In Cryptocurrency?'

Image source: Getty Images.

Cryptocurrencies that allow staking use a “consensus mechanism” known as proof-of-stake (POS). Proof-of-stake tokens allow for blocks to be validated by stakers, or those who put up their tokens to participate in the consensus mechanism.

This mechanism contrasts with proof-of-work, which is what many refer to as “mining” when it comes to other top networks. While proof-of-work has its advantages, this mechanism is extremely energy intensive, resulting in much debate around the future of these tokens in markets that are energy constrained.

Thus, the future may be more favourable for proof-of-stake tokens. Here’s why I think investors may want to consider Solana (CRYPTO:SOL) and Avalanche (CRYPTO:AVAX), two top tokens in this space.

Top proof-of-stake tokens: Solana

Solana has been among the best-performing tokens in the crypto world for some time. This token’s impressive rise from less than $90 per token to $140 per token took place in the matter of a few weeks. Currently trading around $120 per token, Solana is a project I think has tremendous upside from here.

Indeed, much of this has to do with where Solana previously traded at its high (more than $260). A double-up from here seems reasonable for investors bullish on this networks’ growth trajectory.

Of late, interest in Solana has spiked due to a number of key developments. This network launched Solana Pay, the first crypto-to-crypto merchant payment solution. Additionally, Opensea, the largest NFT marketplace in terms of volume, announced it would be supporting Solana-based non-fungible tokens. For those bullish on Solana as a key decentralized platform for NFT developers, this is good news.

Overall, there’s reason why positive sentiment is building around Solana right now. Personally, I think this is one of the best and fastest-growing smart contract-enabled proof-of-stake networks out there. I don’t expect that to change anytime soon.


Like Solana, Avalanche is a smart contract-enabled proof-of-stake network. And like Solana, Avalanche has been growing extremely fast of late.

In fact, since 2021, Avalanche’s AVAX token has been a 28-bagger, now in the top-10 in terms of market capitalization for all cryptocurrencies. Over the past few weeks, Avalanche has similarly outperformed the market on a number of key catalysts.

Recent news that other blockchains and exchanges would be partnering with Avalanche has driven much of this momentum. Indeed, Avalanche’s environmentally friendly focus, its speed, and its low-cost structure are all reasons why investors like this network.

Bottom line

In my view, both Solana and Avalanche are great long-term picks for investors at these levels.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald owns Solana. The Motley Fool owns and recommends Solana.

More on Investing

consider the options

This Stock Is Miles Ahead of its Industry: Is it a Buy Now?

This company has been making significant waves since the beginning of 2024.

Read more »

Dice engraved with the words buy and sell
Bank Stocks

TD Bank Stock: Buy, Sell, or Hold at the 12-Month Low?

TD is near its 12-month low. Is more downside on the way?

Read more »

financial freedom sign
Stocks for Beginners

Could This Undervalued Stock Make You a Millionaire One Day? 

The TSX has good millionaire-maker stocks if you wait. This futuristic stock might look undervalued once you see its growth…

Read more »

Make a choice, path to success, sign
Tech Stocks

The Best and Worst Canadian Stocks So Far in 2024

The recent rate cut could benefit two Canadian stocks but would not lift two underperforming tech stocks.

Read more »

question marks written reminders tickets
Tech Stocks

Could This Under-the-Radar Canadian Stock Be the Next Shopify?

An under-the-radar Canadian stock could be the next Shopify, given its market-beating and stellar returns thus far in 2024.

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Top 2 REITs to Buy Before Yields Fall Along With Interest Rates

Canadian Apartment Properties REIT (TSX:CAR.UN) is just one REIT that could gain when rates really start to tumble.

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Where to Invest $10,000 in June

Canadian small caps are widely outperforming the TSX, and REITs, including Dream Industrial REIT (TSX:DIR.UN) could recover as interest rates…

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.

CPP Benefits: How to Take Advantage of the Increase!

Canadians should take advantage of the new CPP enhancement and build a passive-income nest egg with dividend stocks like Brookfield…

Read more »