Recently, I noticed an interesting phenomenon - the two coins AVAX and SQL have a similar supply level, but their prices and market capitalizations are worlds apart.

Let's talk about the data first. The circulating supply of AVAX is about 422 million coins, with a total supply of around 457 million, and a hard cap of 720 million - which means the total amount is capped. The current price is $17.08, and the market capitalization is at the level of $10 billion. Now, what about SQL? The circulating supply is 614 million coins, but here comes the problem, its total supply is unlimited. Nevertheless, its market capitalization has surprisingly reached $100 billion, with a price soaring to $160.

The contrast is very obvious. AVAX, as the native token of the Avalanche chain, has a capped total supply, which inherently gives it a degree of scarcity. Moreover, it has indeed made some moves in the DeFi space, the ecosystem is continuously advancing, and the application scenarios are gradually expanding. These are all tangible factors that support its value.

Looking at SQL, to be frank, the market performance seems a bit inflated compared to the actual implementation. The unlimited supply means that inflationary pressure is always present, and coupled with relatively thin application scenarios, it's hard to see any substantial growth engines.

So some predict that AVAX's market capitalization may surpass SQL, which makes sense logically—one ecosystem is expanding with a limited total supply, while the other lacks clear growth points and is issuing infinitely. Of course, in the crypto space, nothing is certain. Market sentiment, regulatory policies, and technological breakthroughs—any variable could rewrite the script. Such predictions are worth listening to, but when it comes to real money entering the market, one must weigh the risks themselves.