Ethereum
Plagued by slowdowns, SOL investors feast on ETH and its coins Meme
Today, Solana is the 5th largest cryptocurrency on planet Earth and the 4th largest non-stable token by market capitalization. It is worth approximately $77 billion as of May 2024, according to the average SOL price on crypto exchanges. It is therefore quickly catching up with Ethereum.
Is Solana the Ethereum Killer Crypto Investors Have Been Looking For?
one year ago was the 10th largest crypto by market cap, worth $7.7 billion at a 10x price in just one year. Around the same time, during the last Bitcoin supercycle, after the BTC halving in May 2020, Solana had just launched in March and was not even among the top 1,000 cryptocurrencies.
Meanwhile, Ethereum has grown from a market capitalization of $217 billion in May 2023 to $371 billion at market prices today, a 71% increase in price over the 12-month period. DeFi (decentralized finance) altcoin investors want to know:
Will Solana eventually flip Ethereum like it’s about to do with BNB Coin (Binance token) for the the second time this year?
It’s entirely possible, but Ethereum still has a $300 billion head start on Solana and epic amounts of untapped potential just waiting to be unleashed when giants in the financial, legal and financial industries and insurance companies will start taking it seriously and using its smart contract technology. to carry out decentralized finance operations on the blockchain.
But when it comes to the competition between Ethereum and Solana, there is still the question of Solana’s higher throughput, faster transaction speed, and lower fees.
Gas on Ethereum is certainly not cheap. Crypto investors who like new projects are accumulating presale tokens like Kai Cat Coin ($KAI) before ETH fees go back up historic lows.
Is Solana better than Ethereum?
In a recent speed test Led by CoinGecko, Solana ranked the fastest among cryptocurrency blockchains, processing transactions per second (tps) more than 1,000 times. Ethereum was faster than Bitcoin (10 tps), but much slower than Solana, at 22 (tps).
For comparison, Visa says so can handle 65,000 transactions per second.
According to CoinGecko, Solana has a theoretical maximum to match Visa’s of 65,000 per second: “Despite being classified as the fastest blockchain, Solana has still only reached 1.6% of its theoretical maximum speed of 65,000 GST.
So is Solana better than Ethereum?
Ethereum fees are no joke. This is why gem hunters do their research on trending memes (like PopCat in the first quarter) to justify paying the higher gas fees of the Ether network and ensure their next altcoin gem is a winner like Kai Cat.
Solana vs. Ethereum in the Long Term
“Ethereum has some of the most significant persistent demand drivers in crypto and retains unique advantages in its scaling roadmap.” (Coinbase, May 14)
At the speeds recorded by CoinGecko, Solana can handle 91 million transactions per day and Ethereum can handle 1.9 million per day. But it’s not necessarily the fastest network with the highest throughput that will deliver the most value in the Web3 industry.
Bitcoin is among the slowest and no altcoin has caught up or even come close in the history of the blockchain industry. The wait time and fees for transferring money on the BTC network are a significant part of its appeal and serve the currency’s brutally deflationary ethos and design.
Participants do not lock money into this chain without expecting to leave it there and HODL (hold on for dear life) instead of spending it. In the online realm where abundance and speed are infinitely improving, it is the digital scarcity and illiquidity of the coin that makes it such a valuable internet asset.
Ethereum is pretty much the same in its economic design, but with a pretty big bonus: its tokens can be customized and anyone can use the network to issue tokens with all the features and benefits they can imagine so that a blockchain engineer programs them.
The higher stake to participate is a feature that attracts large and wealthy players in decentralized finance and all sectors that Web3 can serve, such as decentralized law and insurance. They like the fact that it is more expensive to use Ethereum because they understand that it makes the network more secure. Whale-sized cyber exploits might pay off with a cheap blockchain, but not with an expensive blockchain.
Meanwhile, token pre-sale buyers enjoy the benefits of Ethereum’s top-notch security. Investors can also stake tokens to fish KAI Coin Staking Pond– so the KAI economy will retain its value in the market when traded.
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