Ethereum has the 2nd largest market capitalization. Because of its many functionalities that go above and beyond traditional crypto utilities like a store of value or means of payment, Ethereum has been a well-known name in crypto circles. The utility that provides developers with a platform to build Decentralized apps and smart contracts is one of its most distinctive features.

However, these functions aren’t limited to Ethereum. It offers the same utility. Developers can create Dapps, smart contracts and other applications at a quicker rate and lower cost. It is not surprising that Solana has joined in the league of “Ethereum killers”. This term suggests that Solana may eventually replace Ethereum. How likely is that scenario?

Comparing these two programmable Blockchains will give you a better understanding.

Cardano Vs Ethereum: Price Growth

The year 2021 will be a very good year for cryptocurrency traders. Market sentiment has been generally bullish and Ethereum and Solana are no exception. Ethereum saw a fourfold increase in value from $1000 at year’s beginning to $4000 by the end of 2018. Although the Solana trend has also been bullish, it’s growth is astronomical. Over the same time period, Solana’s value has increased from $2 to more than $200. However, SOL will continue to grow in value over the coming years. These numbers show that cryptocurrency is highly sought after.

Solana Seismic Growth: Reasons

1. Finance
Solana has been supported by top crypto investors such as Polychain, Andreessen Horowitz and Alameda Research. It raised $314 Million in secured financing by selling private tokens. This has been an important step in legitimizing and expanding the blockchain platform.

FXT also has many Solana projects. Serum stands out as one of the most notable projects. This decentralized ecosystem for dexing and fi will enable investors to exchange crypto coins across different blockchains.

2. Many anticipated hackathons
Solana held several Hackathons which brought new ideas and creative solutions to the blockchain. This has helped improve the system. Ignition will be the fourth hackathon organized by blockchain. Hackathon participants will have the opportunity to network, exchange ideas, and win $5 million worth of prize money.

3. NFT Market Strong Presence
The sale of NFTs is the greatest driver of Solana’s success. The platform sold a NFT worth a million dollars just weeks ago. After selling 10000 Degenerate Apes in just 8 minutes, the platform also became history. Solana was the one to sell the millionth NFT. This massive gain is what attracted cryptocurrency investors’ attention.

Comparing Solana to Ethereum

1. Solana has a significantly lower price than Ethereum
Solana.com reports that transaction fees are $0.00025 on average, which is significantly lower than Ethereum or Cardano. Many Dapps developers have taken advantage of these low transaction fees to create Dapps on the blockchain network. However, transactions on Ethereum can be as expensive as $70. One user paid 23 Ethereum (roughly $9000) for $120 transactions. High fees for Ethereum can be attributed to scaling issues.

2. Solana works faster
Solana can process transactions at a speed that dwarfs Ethereum by a thousand times. According to Yahoo Finance, Solana can process 50000 transactions per second (TPS) compared to Ethereum’s maximum of 45 TPS. Solana developers say that the blockchain is capable of processing 700000 transactions per seconds. The Ethereum 2.0 update will increase the speed of processing to 100000 transactions per minute.

This proof of history consensus system is what allows you to easily process multiple transactions. The proof of history consensus mechanism allows for the tracking and verification of hashes over time. It helps to verify transactions, without having to wait for all the blocks to be completed. It allows more transactions to be processed quickly, which improves efficiency.

Solana employs the Turbine protocol to reduce data into smaller packets. This speeds up processing speed and eases verification. A similar feature, known as “sharding”, is being developed by Ethereum.

Sustainable Environment
Solana also uses the proof of stake (PoS) mining method, which is more eco-friendly than Ethereum’s proof of work (PoW). Ethereum plans to also upgrade its proof-of-work network to proof of stake. PoW mining is a complex process that requires enormous computational power. It also produces harsh environmental emissions. Ethereum will migrate to PoS in the future upgrade.

Flipside

• Solana’s growth is rapid, but it will be up against stiff competition from Cardano. Cryptos could also catch up to Solana and surpass it.
• Users will face a lot of challenges when migrating from Ethereum to Solana due to the planned upgrades.

Ethereum’s First Mover Advantage

Although all indicators are pointing to Solana’s growth, Ethereum is the market leader. The market capitalization of Ethereum is $400 billion. It boasts approximately 7000 validators and 90000 nodes. There are 3000 Dapps. Solana, on the other hand has 600 validators and 1,000 nodes. There are also 340 Dapps. It is evident that the former has some work ahead of them.

Ethereum is currently the most popular blockchain platform to develop DApps. ERC20 and ERC 721 tokens standards, which allow interoperability of different apps, have made Ethereum a favorite platform for developers.

Who’s the King?

Solana made it into the Top 10 Cryptocurrencies in the World. Even though most other cryptocurrencies are losing value on the market, it has actually gained. While other cryptos, including Ethereum, have increased their value, Solana’s growth has been extraordinary.

Solana’s strong technical capabilities have allowed it to accelerate its growth. This device is built to support tech advancement with future-proof scaling capabilities. For example, it can match an ever-increasing computer’s processing speed.

It continued to gain value even though most other cryptocurrency, such as Ethereum, were dropping. Investors should look at it as a solid buy. Developers are also switching to Solana. It is possible for the cryptocurrency to surpass Ethereum in market value.

Although it has enormous potential, it’s unlikely it will be able to replace Ethereum. Although Solana is a great potential market, Ethereum’s first-mover advantage makes it difficult to compete. Additionally, Ethereum is the market leader in DeFi.

Due to the high volume of transactions, one disadvantage of Ethereum is congestion in its network. It is the 2nd-most popular crypto, despite its high fees and slow transactions. The good news is that there are some positive developments. Upgrade to Ethereum will be cheaper and offer up to 100000 TPS. Solana will also be available for Ethereum upgrade. Ethreum, Solana and other Ethereum killers will eventually be able to coexist.

What are the reasons to care?

No matter if you’re a crypto enthusiast or investor, Solana’s market performance is something you need to be aware of. It is still a fairly new player in the market but it shows the tremendous potential of surpassing Ethereum and Cardano eventually to be the top crypto-world leader.

No matter if you’re a crypto enthusiast or investor, Solana’s market performance is something you need to be aware of. It is still a fairly new player in the market but it shows the tremendous potential to eventually surpass Ethereum or Cardano and become the top crypto investor.

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