Alkesh Shah, an analyst at Bank of America, predicted that Solana would continue to take some of Ethereum’s market share because it is easy to use and charges significantly less. According to the strategist, Solana could be “the Visa” for cryptocurrency.
High hopes for Solana
Solana is one of the most successful cryptocurrency projects over the past twelve months. Its native token has seen a nearly 4,300% increase in USD value over the past year. At present, it is the fifth largest digital asset with a market cap of approximately $50 billion.
Alkesh Shah, from Bank of America, stated that despite this important advancement, the protocol could soon reach new heights. Because it has lower transaction costs and greater scalability, Solana is better than some of its competitors. It also uses proof-of stake and proof-of history technology, giving it additional advantages.
Shah stated that Solana’s differentiated design could help it take over Ethereum’s market share. The proof-of-work system still works for Ethereum, it is worth noting. Ethereum transactions per second are also significantly slower than Solana’s.
Shah spoke highly of Solana’s speed, stating that “These innovations allow the processing of an industry-leading 65,000 transactions per second with average transaction fee of $0.00025 while remaining relatively secure and decentralized.”
The analyst boldly predicted that the fifth-largest cryptocurrency project could become “the Visa for the digital asset ecosystem.”
This could be because micropayments are made possible by the protocol. It is also a key component of the non-fungible token and gaming universes.
Solana could be the next Bitcoin
Sam Bankman-Fried, the founder of FTX cryptocurrency exchange, is also a strong proponent of blockchain technology. He said that Solana was “a good chance” of becoming the next dominant digital asset project due to its speed of scaling.
Solana’s green-focused approach is another advantage. A recent study found that Solana is actually less harmful than Google, the world’s largest web browser. According to the statement, two Google searches use more energy than one transaction on Solana’s network.
The list doesn’t end there. One transaction on Solana uses 24 times more energy than it does to charge a mobile phone. The project’s network consumes around 3,186,000kWh per annum, which is roughly equivalent to the average electricity consumption of 986 households in the USA.
Marla Brooks – Financial Analysis
My name is Marla Brooks, and I am the mainstream behind the”observednews.com” for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.