The crypto world could benefit from Solana by taking some of Ethereum’s market share and becoming a “Visa” in the crypto world.
Alkesh Shah, a Bank of America analyst, predicted that Solana could take some of Ethereum’s market share as it’s easier to use and features lower transaction fees than Ethereum. He said Solana could become “the Visa” of cryptocurrency.
Efforts to uphold Solana’s legacy:
The Solana blockchain platform allows developers to build decentralised, scalable applications. Solana has a much lower transaction fee than other blockchains like Ethereum and can process many more transactions per second.
One of the top-performing crypto projects in the last 12 months is Solana. Its native token has grown nearly 4,300% in USD value in a year and is currently the fifth-largest digital asset with roughly $50 billion market capitalisation.
As a consequence of these significant advances, the protocol may continue to grow in the coming years, according to Alkesh Shah of Bank of America. He argues that Solana offers low transaction costs and better scalability than some of its rivals. Aside from that, it also uses proof-of-stake and proof-of-history technology, which gives it further advantages.
Shah said that despite its differentiated design, Solana could eat into Ethereum’s market share. It is important to note that Ethereum still runs on a proof-of-work mechanism, and transactions on Ethereum happen much more slowly than on Solana.
“These innovations will facilitate the processing of an industry-leading 65,000 transactions per second with average transaction fees of $0.00025 while remaining relatively decentralised and secure,” Shah explained regarding Solana’s speed.
Afterwards, the analyst boldly predicted the fifth-largest cryptocurrency project could become “the Visa of the digital asset ecosystem.” This is possible because the protocol facilitates micropayments. It also holds a crucial role in the gaming and non-fungible token universes.
Bitcoin’s successor could be Solana:
A prominent proponent of the blockchain project is the Founder of cryptocurrency exchange FTX – Sam Bankman-Fried. He recently said that Solana has a “real chance” of becoming the next dominant digital assets project due to its scalability.
Solana has another advantage over Google in that it is eco-friendly. According to a recent report, it actually causes less environmental damage than Google. According to the statement, two Google searches consume more energy than one Solana transaction.
An individual transaction on Solana consumes 24 times less energy than charging a mobile phone. In fact, the project’s network consumes around 3,186,000 kWh per year, which is equivalent to the electricity usage of 986 households in the United States.
