Solana will continue to gain ground on Ethereum with the potential to become the “Visa of the crypto ecosystem”, according to Bank

According, Alkesh Shah, Who Global Crypto and Digital Asset Strategist at Bank of America, Solana is effectively competing with Ethereum and expressed in a note days ago that according to him it could become the “Digital Asset Ecosystem Visa”, and its argument is based on the fact that thanks to its differentiated design, it could take market share from Ethereum.

Solana is a network that was launched in 2020 and in a short time has become the fifth largest cryptocurrency, with a market capitalization of $47 billion and although compared to Ethereum, which is currently around $384 billion, does not mean a disadvantage for Solana as “is proving to be successful”, he said Shah in the note reported for Business Insider.

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Advantages of Solana compared to Ethereum:

Solana offers low transaction fees, ease of use, and scalability relative to other cryptocurrencies, and such innovations are driven by its proof-of-history blockchain, which helped improve the performance of its proof-of-stake consensus mechanism, it says. in the note to Alkesh.

These innovations enable industry-leading ~65,000 transactions per second to be processed with average transaction fees of $0.00025, while remaining relatively decentralized and secure.

Alkesh Shah

Almost two years after the launch of Solana, in March 2020, a “meaningful adoption” more than 50 billion transactions settled and more than 5.7 million NFT minted and at the moment there are more than 400 projects who have joined the network of Solana, which translates into an increase in the price of SOL, the native cryptocurrency of the network, of more than one 4,000% during the last year.

Ethereum’s prioritization could optimize it for high-value transactions and identity, storage, and supply chain usage

Shah commented

It may interest you: A transaction on the Solana network consumes less energy than two Google searches and 24 times less than charging a phone

and although Ethereum could be optimized for such purposes, even so Alkesh interpret that leaves room for Solana and other scalable blockchains to chip away at Ethereum’s market share.

While Solana prioritizes scalability at the expense of being a less decentralized and secure blockchain, Ethereum prioritizes decentralization and security at the expense of scalability. lack of Ethereum scalability, has generated that they have periods of network congestion and transaction fees that are sometimes higher than the value of the underlying transaction, which means that its use is reduced and that is where Solana stands before users.

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Solana will continue to gain ground on Ethereum with the potential to become the “Visa of the crypto ecosystem”, according to Bank

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