According to Nigel Green, CEO and founder of deVere Group, a leading consulting and fintech firm, Solana in 2022 could overtake both Ethereum and Bitcoin.
Why Solana can overtake Ethereum
“End of the week trading was hit by negative sentiment of high-growth stocks, which went on to impact Bitcoin, the world’s largest cryptocurrency by market cap which, in turn, weighed on the wider crypto market.”
The prediction that may seem far-fetched to some would still be supported by cryptocurrency returns in 2021. Since the beginning of the year, Bitcoin has risen 46%, Ether 376%, and Solana about 13,000%.
“I am confident that a key one to watch in 2022 is Solana, currently the fifth-largest cryptocurrency by market capitalization. It started the year trading at about $2, now its quotes are at about $160.”
“It’s likely it will outperform both Bitcoin and Ethereum again next year,” said the deVere CEO. “Why? Because of its masterful technology and its cost-effectiveness.”
Solana, the Ethereum killer
Solana was founded in April 2019 with the clear goal of overcoming the scalability challenges of the Ethereum blockchain, reducing transaction times and associated costs.
Solana, thanks to the Proof of Stake model, which replaces ETH and BTC’s surely more elaborate Proof of Work model, can process 50,000 transactions per second, compared to Ethereum’s 15-30, with costs of $0.00025 per transaction.
In a short time, with over 56 billion in capitalization, it has become the fourth most valuable cryptocurrency behind Bitcoin, Ethereum, and Tether.
But its rise looks like it should literally explode in the very next year.
Three reasons that make Solana so interesting
One of the main reasons that make Solana cryptocurrency among the most interesting ones in the coming year is definitely inherent right in its scalable feature, with the speed of transactions making it one of the fastest blockchains on the market today. This fact also makes it one of the cheapest blockchains, with costs well below not only Ethereum but also most other blockchains.
Solana, compared to Ethereum, also has another major advantage: it does not have a waiting period between processing a transaction and adding that transaction to the blockchain. Transactions are accepted almost instantly, whereas, on Ethereum, the waiting period before validation is about 4 minutes.
Solana is definitely more eco-friendly, spending much less energy than Ethereum’s energy-intensive blockchain, and this gives it an unquestionable advantage at a time when the environmental issue is increasingly in the public eye.
These reasons make it increasingly attractive to developers of dApps and new projects, especially in the fast-growing DeFi ecosystem.
Despite Ethereum still remaining the most widely used blockchain, Solana is the one that has much higher growth rates than any other blockchain currently in use.
The TVL of the Solana network has increased 15 times in the last six months, and dApps users are currently already almost half of the users on the Ethereum network.