Solana’s Comeback
If you’ve been following Solana, you know it has faced challenges in recent years, including network halts and the crypto winter. But now, things are looking up. This year, Solana has achieved 100% uptime and seen a significant increase in total value locked in decentralized finance (DeFi), reaching $415 million from $210 million at the start of 2023. Some are even saying that Solana could be the next Ethereum.
Solana Catching Up with Ethereum
Solana is making a comeback, catching the eye of sceptics who are now cheering for SOL. After a recent price surge that saw SOL jump almost 400% from its lows in late 2022, critics are turning into supporters. But, when stacked against Ethereum, many believe that it could be the next Ethereum or surpass it.
Even though Solana’s TVL has aggressively climbed, reaching $415 million at the beginning of 2023, it’s important to note that it still has quite a journey ahead to hit its all-time highs. Comparatively, it’s nowhere near Ethereum’s impressive $24.4 billion.
Meanwhile, in terms of developer activity Solana rank 5th among the most developed ecosystem, but it trails behind Ethereum, Polkadot, and Cosmos, sitting 50% lower than a year ago.
Institutional Adoption
Notable companies have already taken this step, with Visa announcing in September 2023 that it would incorporate Solana as a settlement layer to enhance cross-border USDC stablecoin payments.
Additionally, global e-commerce giant Shopify revealed its integration of the Solana Pay system in collaboration with Mastercard. These strategic moves by major players signal a growing acceptance of Solana’s capabilities and potential impact on the broader financial landscape.
Revealing Daily Activity
Solana shines in daily transactions, surpassing Ethereum by 15-20 times, thanks to low fees and fast transaction times. However, when focusing on actual users, Solana needs more users to catch up with Ethereum.
Even with Layer2 networks on Ethereum, the scale of activity and transaction value remains higher in Ethereum’s favor.
As Solana keeps going, it’s showing it can handle challenges and grow. But calling it “the next Ethereum” means it has to fill some big gaps in different things. The surge in support and positive metrics signals potential, but a balanced perspective is essential when assessing its progress.
Hot Take: Is Solana the Future of Crypto?
Solana’s resurgence has caught the attention of many investors and industry experts who see its potential as a strong contender against established blockchains like Ethereum. While there are clear indicators of growth and institutional adoption for Solana, there are still significant gaps to bridge before it can claim the title of “the next Ethereum.” Keep an eye on Solana’s progress as it navigates through these challenges and continues to innovate within the crypto space.
By
By
By
By
By