Why Bank Of America Says Solana Could Become The ‘Visa Of Crypto’ – Sologenic – United States Dollar ($SOL), Bank Of America Corp. (BAC)

Strategists in Bank of America Corp (NYSE: BAC) predicts a future when blockchain will be high-speed Solana (CRYPTO: SOL) can become Visa company (NYSE: V) for the digital asset ecosystem.

What happened: According to a January 11 research note seen by Business Insider, Bank of America analyst Alksh Shah hypothesized that Solana’s low transaction fees, ease of use, and scalability could help drive market share away from Ethereum (CRYPTO: ETH).

“Its ability to provide high throughput, low cost, and ease of use creates a blockchain optimized for consumer use cases such as micropayments, DeFi, NFTs, decentralized networks (Web3) and gaming,” Shah stated.

Since its launch in March 2020, the Solana blockchain has settled more than 50 billion transactions and has been used to mint over 5 million NFTs.

Visa says it is able to handle more than 24,000 transactions per second (TPS), while Solana boasts a transaction speed of 65,000 TPS.

Meanwhile, the most widely used smart contract network Ethereum currently handles only 12 TPS on its main network – although this number is much higher with the help of Layer 2 blockchains such as ribbed (CRYPTO: matic).

“Ethereum prioritizes decentralization and security, but at the expense of scalability, which has resulted in periods of network congestion and transaction fees that are sometimes greater than the value of the transaction being sent,” Shah wrote.

“Solana prioritizes scalability, but the less decentralized and relatively secure blockchain has trade-offs, evidenced by many of the network’s performance issues from the start.”

Over the past year, Solana has experienced network outage issues on three separate occasions. The latest outage was reported earlier this month with congestion allegedly caused by “wrong transactions”.

price movement: As of Thursday morning, SOL is trading at $156.95, up 6.28% in the last 24 hours. The value of SOL has increased more than 30,000% since May 2020. The cryptocurrency is down at least 41.7% from its all-time high of $259 in November 2021.

Photo by Shubham Dag on Unsplash