Solana (SOL) could be the next Bitcoin and that Solana could surpass Ethereum’s market cap and become the foundation for more DeFi apps in the future.
There aren’t many blockchains that can compete with Solana
“Solana is one of the few public blockchains with a really reasonable roadmap that can scale millions of transactions per second at just a few cents per transaction – that’s the scale you need.” SBF said, “This is not where many other blockchains, including Ether, have focused.”
Solana could become the largest decentralized financial platform in direct competition with Ether. Solana’s unique technology, which underlies the development of the DeFi protocol, will also drive up the price of the SOL token. He believes Solana’s ability to process millions of transactions per second is one aspect of the project that will give it an advantage in the DeFi space.
For his part, Su Zhu, founder of Three Arrows Capital, tweeted that converting SOL to ETH was the worst decision he made in 2021.
Su Zhu said that the founder of Multicoin Capital, Samani, advised him to invest in Solana and that Su Zhu did not take the advice in time and bought SOL over the counter later because he believed that Ether would expand. After winning 20 times, Su Zhu converted all of his SOL into ETH, which he calls the worst decision of 2021.
Earlier, Multicoin Capital founder Samani and Placeholder partner Chris Burniske debated the decentralization of Ethereum and Solana. Samani said that both Ethereum and Bitcoin are highly centralized by nature, with Ethereum’s whale investors not being transparent to the public, while Solana is more decentralized. Solana is more decentralized.
At the same time, Samani says that the founder of Alameda Research, SBF, should not be called a Solana insider and that SBF was unaware of Solana’s existence until it began circulating and trading in the market. su Zhu agrees.
So what is the real status of Solana and why is it considered better than Ethereum and even Bitcoin?
First, a single Solana transaction consumes less energy than two Google searches.
The Solana Foundation published the Solana Energy Consumption Report for November 2021, which states that the Solana network is designed as a high-performance blockchain.
A single Solana transaction requires only 0.00051 kWh or 1,836 joules of energy, while a single Google search consumes 1,080 joules, and a single transaction on Solana consumes less energy than two Google searches. In contrast, a single Ether transaction consumes 692,820,000 joules of energy.
Second, LTC and SOL-based investment products have outperformed bitcoin investment products over the past 30 days.
Data from cryptocurrency data firm CryptoCompare shows that bitcoin-based investment products are facing stiff competition from cryptocurrency-based products, The Daily Hodl reports. According to the new report, investment products based on Litecoin (LTC) and the SOL smart-contract blockchain generated better returns than investment products based on BTC in the 30 days ending Nov. 19.
“Solana- and Litecoin-based products outperformed BTC-based investment products, led by 21Shares’ ASOL (a Solana-based product) and Grayscale’s LTCN (a Litecoin-based product), which returned 22.0% and 14.9%, respectively.”
According to CryptoCompare, Bitcoin-based investment products recorded losses during the same period, while Ethereum- and Solana-based products posted gains. “Over the past 30 days, BTC-based products recorded losses ranging from -6% to -13%, while ETH products gained between 0.5% and 7%.”
The report also highlights that Bitcoin’s assets under management (AUM) fell sharply year-over-year, while AUM for other crypto assets rose sharply. “In November, Bitcoin AUM fell 9.5% to $48.7 billion, the largest month-over-month decline since July.
Meanwhile, AUM for Ethereum products increased 5.4% to $16.6 billion and AUM for other cryptocurrency products increased 10.4% to $2.6 billion.” This decline caused Bitcoin’s market share of total crypto assets under management to fall from 73.7% (October’s share) to 70.6% in November.
Third, SOL became the fifth index in the Bloomberg Galaxy Index series, which also boosted the market’s confidence in the SOL trend.
Related posts:
