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Is Solana Ethereum’s next competitor?

Photo of: Joseph Stone
by Joseph Stone

Cardano isn’t the only blockchain looking to compete with Ethereum and take advantage of its congestion. Solana is a serious competitor too and its ecosystem is growing. SOL is benefiting from this and is showing strong growth.

When it comes to staking, Ethereum has to deal with three growing opponents. These are Cardano (ADA), Polkadot (DOT) and Solana (SOL). All three blockchain technologies have strong arguments.

To compete with Ethereum, which has the most significant ecosystem today, they rely on their scalability, i.e. their ability to manage a large volume of transactions. But it is still necessary to convince companies to migrate.

And in this field, Solana is currently experiencing a certain success. This is reflected in the value of its native token, the SOL. This one is currently recording a strong growth. Over the past 24 hours, SOL has recorded almost 16% growth.

The cryptocurrency is trading at around 31 euros, its highest level to date. Solana ranks 18th among cryptocurrencies with a total valuation of €8.38 billion. This is far from the crypto leaders certainly, but the momentum is positive.

Solana is benefiting from the DeFi boom, which is now attracting institutional investors. However, this growth suffers at the same time from technical limitations, and in particular Ethereum’s congestion.

DeFi applications and protocols are therefore looking for remedies. And the solutions offered by Solana are an answer with a TPS (transactions per second) of 65,500. So investors are also interested in SOL. On March 26, the crypto was quoted at $12. Over a month, the price is therefore up by almost 200%.

As a result, the blockchain is attracting increasing capital for staking. According to data from StakingRewards, Solana now ranks 3rd at $9.4 billion. That’s still a far cry from Cardano and Polkadot at $26.4 billion and $22.7 billion respectively.

But this interest in SOL is primarily the result of growing adoption by applications. The blockchain is thus home to the leading stablecoins USD Coin (USDC) and Tether (USDT).

Several DeFi protocols have also chosen Solano, such as Raydium and Serum, the latest project of the founder of the decentralized exchange FTX. And this ecosystem continues to grow, as one user on Twitter illustrates.

Cointelegraph also points out that Solana received another boost in April with the launch of Sollet, the Solana wallet, as an extension for Google Chrome. The Solana ecosystem now has the equivalent of Ethereum with MetaMask.