According to an analyst at Bank of America, Solana has the potential to erode Ethereum’s market dominance. Given its concentration on micropayments, gaming, and non-fungible tokens, Solana is likely to become the crypto-Visa. ecosystem’s
Cryptocurrency, Ethereum, and Solana: Bank of America
According to a recent BOFA research document, Solana could cut into Ethereum’s market share.
The Solana Foundation produces a blockchain that stresses scalability, low transaction fees, and ease of usage.
Micropayments, gambling, and non-fungible tokens are possible by the crypto’s low transaction fees and ease of usage (NFTs). Since its March 2020 launch, more than 50 billion transactions are complete, and $10 billion in total value accounted for.
Solana Might be the Visa of Digital asset trading
It estimates that Solana has a market valuation of $46 billion, making it the fifth-largest cryptocurrency. As per the data from Bitcoin.com Markets, Ethereum is the second-largest cryptocurrency with a market capitalization of about $400 billion at this writing.
As Shah emphasized that Solana’s distinction from Ethereum has been a success, Solana’s valuation disparity creates potential. An analyst at Bank of America says the Proof of History blockchain supports its Proof of Stake consensus mechanism.
An industry-leading 65,000 transactions per second can process at an average transaction cost of $0.00025 thanks to these new developments.
Decentralization and security are priorities for the Ethereum blockchain, while scalability prioritizes for the Ethereum network. Consequently, resulted in moments of network congestion and highly high transaction fees.
Shah stressed that alternative scalable blockchains could reduce Ethereum’s market share. Ethereum’s focus on high-value transactions, identification, storage, and supply chain applications could help it retain its position.
The trading of digital currency According to a recent report from Coinbase, ETH’s scalability will improve. On the other hand, ETH’s scalability issues expect to worsen as more people join the crypto and Web3 revolutions.
A JPMorgan analyst said last week that Ethereum’s Merge and Layer 2.0 launches speed up transactions and minimize energy use. Ethereum’s decentralized financial (defi) dominance threaten by scaling concerns, according to another JPMorgan expert.
Solana, on the other hand, is not without issues. Due to a rise in high-computing transactions on the Solana network, Bitcoin.com News revealed last week. Consequently, loading and transaction processing times have increased, and some failed transactions.
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