Alkesh Shah, a digital asset strategist at Bank of America, believes that Solana, the largest competitor to Ethereum, could be Visa in the digital asset ecosystem. He said this in a research note on Tuesday.
Comparison of Solana and Visa
In 2020, the network called Solana was launched. SOL, the network’s original token, has grown steadily since then. Now it is 5y The largest cryptocurrency by market capitalization. It currently has a market capitalization of $47 billion. An order of magnitude faster is also faster than Ethereum. So far, SOL has been used to settle more than 50 billion transactions as well as mint over 5.7 million NFTs.
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However, critics believe that SOL’s fast speed sacrifices reliability and decentralization. Regardless, Shah sees the drawbacks outweighing the benefits. He says Solana’s low cost, ease of use and high throughput capacity make it the ideal blockchain for consumers of micropayments, gaming, Web3, NFTs, and DeFi.
He also added that Solana has captured a portion of the market share of Ethereum due to its scalability, ease of use, and low fees. At the same time, Ethereum is seen as more convenient and limited to identity and high-value transactions.
Today, about 1,700 transactions are processed every second by Visa. In theory, the network can handle at least 24,000 TPS. The Ethereum mainnet is currently handling around 12 TPS, but the number is rising from Layer 2s. Solana’s theoretical limit is 65,000 TPS.
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However, over the past few months, there have been quite a few issues with the performance of the SOL network, which proves reliability concerns. Recently, at 6y In January, Binance confirmed the issues with the withdrawal. On December 22second abbreviationSolana Labs’ heads of communications claimed that the developers are working to fix these issues.