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As a crypto enthusiast, it’s impossible for you not to have noticed the growth in the Solana network. Last year, it was up about 40 times before setting its all-time high amidst bitcoin’s drama. Solana was one of the best-performing networks in the entire crypto community in 2021. Although Solana has been since 2017, it was deployed in 2020, and barely a year later, it has jumped from the 42nd position to the 8th by market cap on the entire crypto community. It’s somewhat alarming how rapid the growth of Solana has been and how much it has achieved in barely a few years after becoming mainstream.
There are, however, several reasons behind this growth, and some of them are genuine enough for you to buy Solana and invest in its network. Recall that Solana is a fourth-generation cryptocurrency, contrary to Ethereum, a second-generation cryptocurrency. Its growth is such a fourth-generation base. Since Solana was created, it has improved on every weakness of Ethereum, hence, why it’s regarded as the perfect Ethereum killer amidst Polkadot and Cardano.
Here are some reasons why SOL is regarded as the perfect Ethereum killer. However, it’s worth noting that Solana is the network, and SOL is the native token on the Solana network.
Huge transaction capacity
One of the main reasons for so much excitement in the Solana network is its transaction capacity. If there’s any reason why Solana has enjoyed that bullish rally, this is one of them. Bitcoin has a transaction capacity of seven transactions per second, Ethereum handles about 30, and Solana has a capacity of 65,000 transactions per sec. No network has been able to achieve this fit. However, Ethereum is on the verge of transitioning into ETH 2.0 to improve its scalability and reduce its huge transaction fee. After this upgrade, Ethereum should have a carrying capacity of about 100,000 transactions per sec. Currently, Solana remains the fastest network among all other cryptocurrencies. Even when compared to visa card that has about 24,000 transactions per sec capacity, it should be noted that some of these transactions might take days for confirmation. However, it’s instant on the Solana network
Pocket-friendly transaction charges
Business-wise, Solana should have a high transaction fee because of its fast, huge transaction capacity per sec. Solana remains one of the cheapest when it comes to the transaction fee. Unlike bitcoin, which could cost $5 per transaction, Ethereum about $10 to $65, Solana’s transaction charges range from $0.00025 to $0.0001. It is worth noting that this ridiculous transaction fee on the Ethereum network would be reduced once the network fully transitions into ETH 2.0. Nonetheless, Solana remains the cheapest.
Smart contract compatibility
Every smart contract compatible cryptocurrency owes this to Ethereum. Being the first smart contract cryptocurrency, Ethereum became the father of DeFi has most of the dominance to its name. However, other smart contracts compatible networks are such that they improved on every of Ethereum’s weaknesses. Solana, for one, being a fourth-generation cryptocurrency, can run smart contracts applications even better and faster than Ethereum. Hence, one of the core reasons it’s regarded as the perfect Ethereum killer. It has all of Ethereum’s functionality and executes them even better. As it stands, Solana can overdo Ethereum and dominate the DeFi ecosystem.
Solana still has many upgrades coming into its network, and currently, it is trading around the $90 point, so it’s about the best point to buy Solana, although you should do your research too. 2022 will be a roller-coaster of emotions amidst the news of crypto regulation and worries that altcoins will hit their 2021 all-time highs in 2022. However, in other not to take any chances, do your research and trade accordingly.
One way in which Solana could tale Ethereum’s position as DeFi boss is by increasing its user adoption base. It is, however, possible on the Solana network as it has seen more than 130% with more than $3 billion worth of assets locked in its smart contract. The Solana network is a very interesting one, and that’s because of its interesting technological advantages over other possible Ethereum killers. The manes behind the Solana network are such that they can’t afford to see Solana anywhere below the top 10 cryptocurrencies worldwide. So, Solana doesn’t only have an interesting fundamental advantage over others, but it also has a tremendous user adoption rate backed up by big crypto investors and enthusiasts.