Solana’s star cryptocurrency (SOL) is gaining traction in the crypto space as a result of several all-time highs its price has reached in the last months. The fortune Solana has experienced is on the heels of price rallies Bitcoin and other cryptocurrencies have had since October.
The digital token has proved its competitiveness as the foremost Ethereum killer after overtaking Cardano in the crypto market. The competitive advantage of Solana on Ethereum is credited to its smart contract feature. Despite the $407 billion market valuation gap between the two cryptocurrencies, experts are suggestive of Solana’s potential to topple Ethereum if its performance is impressive in the long run.
What Is Solana?
In converse to its competitor, Ethereum, which is the first Altcoin after the launch of Bitcoin, Solana is a relatively young cryptocurrency that can find a spot in the list of the top 10 largest cryptocurrencies. It was launched by Anatoly Yakovenko in 2020, as it supports smart contracts with the creation of decentralized applications.
The uniqueness of Solana among over 2,000 cryptocurrencies lies in both proof of history (PoH) and proof of stake (PoS). The PoS enables coin holders to check transactions while PoH speeds up the verification process. So, Solana is characterized by swift transactions at a lower cost.
Contributory Factor To The Recent Price Rally
The sole contributory factor to the recent price rally of Solana was the large interest in blockchain gaming. Today, cryptocurrency stands as the most preferred platform for developers are into non-fungible tokens (NFTs) and de-fi. Following the volatile nature of Ethereum’s transaction fees, many prefer Solana to it.
There is a likelihood that the blockchain gaming initiative for Solana will trigger both NFTs and their connectivity with blockchains, albeit the current blockchain games in the Solana platform are still maturing.
Solana Vs. Ethereum: The Trajectory of ‘Ethereum Killer’
Ethereum has a remarkable history in the crypto space, but Solana has been firing every cylinder of cryptocurrency competitiveness especially on Ethereum as it has been touted as “Ethereum killer”. Solana was traded for $1.5 at the beginning of 2021, but its value has surged Solana was traded for US$1.5 and its value has gone up by 17,500% to reach a $163 price, although it hit at $260 in the last ten months.
Designed with smart contract capabilities, Solana and Ethereum are nuanced with this feature. Ethereum transaction is relatively low while Solana is capable of quick and efficient transactions. This swift transaction process identified with Solana enables the platform to make over 50,000 transactions in a second.
Also, there is a remarkable growth of NFT sales on the Solana platform as the value increased past $500 million since August. It is a known fact that Solana has fascinating features, but growing above Ethereum is something that might take a long time to be achieved. This is because Solana has so much to do in closing up the $407 billion gap Ethereum is leading the cryptocurrency with.
Solana Price Prediction
Hit the $500 mark is what is in view for Solana to achieve. As the year 2021 winds down, Coin Price Forecast has predicted Solana’s capability of hitting the mark by the end of the year. Crypto experts also believe the price will be doubled by 2022 and 2023 will produce a value four times its price. These predictions are similar to that of LongForecast.
There is a strong belief that Solana will evolve to be the top platform for NFTs and de-fi, including blockchain gaming. Despite the significant growth of Solana in the crypto market, Ethereum 2.0 is what Solana should worry about in its growth phase. Generally, Solana is thriving in the crypto space and it is evident there are huge prospects for it shortly.