Crypto

Examining How Solana Might Be Able to Compete With Ethereum and Bitcoin

Solana SOL Crypto

By market capitalization, Ethereum (ETH) is only second to Bitcoin (BTC), and its smart chain technology was a game-changer. New candidates are fighting ETH for its throne due to the industry’s rapid pace and some of the ETH-related problems such as scalability, fees, and so on. One of them, according to the interviewee, might be the next Bitcoin.

Look for the next big altcoin to invest in.

When fighting against the largest token, Sam Bankman-Fried, the creator of the crypto exchange FTX, provided support to two cryptocurrencies. During an interview with Kitco News, the billionaire voiced optimism about Solana (SOL). He feels Solana can scale to the same degree of mass adoption as Bitcoin (BTC). He also talked about the possibilities of Avalanche (AVAX).

To compete with ETH, a token must have a variety of features. Consider what it would take for 1 billion individuals to adopt cryptocurrencies and blockchain technology. Meanwhile, people will begin to use blockchain infrastructure on the same level that they do now with social media or financial. It will generate millions of transactions every second. SOL’s and AVAX’s blockchains, according to the young entrepreneur, are scaling to that level.

“I think Solana has a chance at it,” he continued, “which is extremely exciting.” “I believe there are other tokens out there that are attempting to scale, and Avalanche is one of them.”

Let’s break this down a little. Let’s start with the fifth-largest token. When asked if he believes Solana would surpass Ethereum’s market capitalization, Bankman-Fried says, “It may happen.” It was never going to happen.”

However, the sheer possibility opens up a plethora of possibilities.

“With a massive composable environment, [Solana] can host DeFi (decentralized financial) applications for hundreds of millions to billions of people.” That’s not to say that will happen, but it’s a possibility, and I think that’s extremely exciting.”

Solana took on not only ETH but also the largest crypto coin, BTC. SOL lately outperformed BTC in terms of returns.

In Avalance, he mentioned another idea. To back up its claim, the #11 ranked token has compiled some outstanding statistics. Consider CryptoSeq’s tweet on the 27th of November, 2021.

“After just 14 months, Avalanche is doing 55 percent of the number of transactions as Ethereum, while $AVAX has less than 5% of the market cap of $ETH.”

Daily Tx: 707,134 Avalanche C-Chain Ethereum Daily Tx: 1,297,534

14 Months Avalanche.

Ethereum has been around for 6 years and 6 months.

$24.2 billion $AVAX.

$ETH $490.5 Billion $ETH $490.5 Billion $ETH $490.5 Billion.

The State of the Cryptocurrency Market in General

The disparity between bull and bear runs was also discussed in the conversation. It is an unavoidable fact that there will always be more collisions and bull runs. He also expects “significant institutional use of cryptocurrencies” in the coming years.

Nonetheless, projects with devoted supporters and essential use-cases are unaffected by the change.

“Loyalists will back projects that have genuine acceptance, or the potential for real adoption, even during bear markets.”

For some “hype-furled” meme tokens, this is quite a contrast. For example, there have been rumors of SQUID tokens. It was linked to the popular Netflix series ‘Squid Games.’ People are said to have lost their life savings as the ecology yanked the rug out from under them.

Users should invest according to their risk appetite and not get carried away with profits, according to Bankman-Fried. The supply distribution of a token in an ecosystem must be examined. One of the reasons for the failure of this meme-coin.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.