Solana, according to a Bank of America expert, is poised to capture a piece of Ethereum’s market share due to its low transaction fees, scalability, and ease of usage.
In a research report published on January 11, Bank of America digital asset strategist Alkesh Shah projected that Ethereum competitor Solana might become the “Visa of the digital asset ecosystem.”
Since its formation in 2020, the Solana network has evolved to become the sixth largest cryptocurrency, with a market valuation of $47 billion. It has been used to settle over 50 billion transactions and mint over 5.7 million non-fungible tokens, and it is an order of magnitude faster than Ethereum (NFTs).
Visa now processes 1,700 transactions per second (TPS), however the network has a theoretical capacity of at least 24,000 TPS. On network, Ethereum can manage roughly 12 TPS (more on tier twos), whereas Solana has a capacity of 65,000 TPS.
“Solana prioritizes scalability,” Shah acknowledges, “but a somewhat less decentralized and secure blockchain has drawbacks, as evidenced by multiple network performance concerns since creation.”
Solana has had its fair share of network performance issues in recent months, including withdrawal troubles confirmed by Binance on January 12, allegations of delayed performance on social media on January 7, and what appeared to be a DDos attack on January 5, despite Solana’s denial.
That’s it for now. Have a productive day, reader 🙂
