The cryptocurrency market has attracted the attention of several business leaders and investors around the world. Cryptocurrencies like bitcoin and ethereum have taken over crypto traders as the most trusted investments. But the recent fluctuations and emerging new cryptos in the market have left the investors to want more. Recently, Solana has grabbed the attention of several crypto enthusiasts, and experts believe that it will soon overtake ethereum in the market.
Ethereum is the second-largest cryptocurrency in the market by both market capitalization and daily trading volume. It has undergone an incredible amount of transformation since its inception and has only continued to grow. The excitement around ether is due to the growing acceptance of DeFi, a concept that focuses on smart contracts and blockchains. The adoption of blockchain technology to improve business processes and using it as a method for business transactions has raised the popularity around the ether, so much so that experts believe that in the future, it might overtake bitcoin. But will Solana beat ether before that?
Solana being the ‘Ethereum Killer’
Solana has witnessed massive growth over the past few weeks and currently has a market capitalization of US$49.785 billion, according to Coingecko.com. SOL has surged over 3200% since August last year and is currently holding the 6th position in the crypto market. Solana claims to be the world’s fastest cryptocurrency, with an average transaction cost of $0.00025.
SOL is an open-source project that is specifically designed to host decentralized applications. It has gained popularity by providing something to the crypto traders that the ethereum blockchain has been unable to offer so far- faster operations and lower transaction fees. Traders are increasingly investing in DeFi, NFT, and other smart contract deals. Unlike ethereum, SOL works on the proof-of-stake (POS) algorithm, making it more sustainable for the environment.
Solana’s De-fi projects have crossed over US$3 billion in September this year. At the moment, ethereum holds the maximum number of DeFi and NFT projects, but the increase in the number of projects for SOL proves that it is capable of giving a tough competition to ether.
SOL being the ‘Ethereum Killer’ in 2021 has solved some of the shortcomings of ether with its neat technology. One of the reasons ethereum traders find it difficult to achieve higher transactions volumes is because miners need to communicate with each other to figure out how to order the blocks. Solana has solved this problem with a system of cryptographic time-stamping that can accommodate 65,000 transactions per second.
Solana’s potential to grow more cannot go unnoticed. It has benefitted greatly from the increasing adoption of DeFi and NFT. These current developments show that there is an increase in the use of blockchain technology and, also there is growing scrutiny around what is happening in the crypto space. Given the current situation of the market, these developments are subject to changes in the future.
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