- Solana: The Big Ethereum Killer
- Crypto Graveyard Welcomes Solan?
The cryptocurrency market consists of a series of projects that claim to be giant killers. For example, in the early history of Bitcoin (BTC), altcoins emerged that were said to be practical for everyday money.
All these cryptocurrencies were based on the argument that they have faster and lower fees than BTC, but this did not allow these projects to gain great fame. Litecoin (LTC) and Bitcoin Cash (BCH) confirm this fact.
Both altcoins entered the top 10, but failed to maintain their popularity – either because no one needed a new Bitcoin, or because they could not follow the evolution of the market and provide the appropriate attractions to accumulate.
In fact, the altcoin that managed to change the cryptocurrency landscape was Ethereum (ETH). By not focusing on being a “Bitcoin killer,” the cryptocurrency introduced the blockchain world to important industry trends, decentralized finance (DeFi) and smart contracts enabling non-functional tokens (NFTs).
At the beginning of Bitcoin, Ethereum faced some difficulties when it was widely used, as its network introduced slowness and high fees when forced. As a result, many ETH killers have emerged, and one of them is Solana (SOL).
Solana: The Big Ethereum Killer
Solana was destined to be the star of decentralized finance, but its biggest foray into the blockchain space was in the NFT arena. Its network succeeds in facilitating the creation of decentralized applications, dApps.
There is a hybrid model of consensus, proof-of-stake (PoS) and proof-of-history (PoH) to ensure cryptocurrency scalability. In addition, it has a low operating cost, which is designed to keep fees low for applications with billions of users.
Undoubtedly, these qualities will position Solan as a strong contender for Ethereum. However, it seems that history repeats itself and the self-proclaimed “killer” project of its predecessor does not stop losing market share.
According to Arthur Hayes, co-founder of BitMEX, no altcoin that has emerged as an Ethereum killer has the ability to beat the leading platform in smart contracts. The businessman believes that the talent of the developer is about more than a story about cheap and fast operations.
“Ethereum has a few thousand developers. The next blockchain could have a few hundred, and that’s what matters. Developers create this ecosystem. They build the apps.”
Crypto Graveyard Welcomes Solan?
Like other cryptocurrencies, Solana has undergone a sharp correction in 2022. The altcoin has fallen more than 90% since hitting an all-time high in November 2021.
However, unlike some projects, factors related to the Solana ecosystem itself contributed to this sinking. As seen in the cryptocurrency’s months of existence, network outages are common on the smart contracts platform.
Since its launch in 2020, the altcoin has experienced eight network outages as of this writing.
Because of this, the community is increasingly angry, pointing out that the fragility of the Solana ecosystem is a major “Achilles heel” for the cryptocurrency, preventing it from taking off and showing its potential to beat Ethereum.
“The reality is that SOL is not innovative at all! It’s just the first major blockchain to be so reckless in its fundamental design and make it look innovative (to attract investors),” said Justin Bones, cryptocurrency researcher and founder of Cyber Capital.
Another factor that led to skepticism about Solana was the strong support it received from Sam Bankman-Fried ( SBF ), the founder of bankruptcy firms FTX and Alameda Research, which have invested heavily in the SOL ecosystem.
Tokens on the Solana network, which received investment from Alameda, are expected to be sold after the trading company files for bankruptcy. In addition, there is no funding for the sustainability of projects implemented from the treasury.
The scenario of the SBF empire caused a bigger panic for Solana, which even saw the total amount blocked drop to a six-month low. In addition, it caused the SOL token to lose its market capitalization and was removed from the top 10.
According to Solana’s co-founder, the company did not have any assets in FTX. Anatoly Yakovenko said that in the current situation, he still has 30 months of runway, which is enough time to change things. However, getting Solan out of the Crypto Graveyard can be a very difficult task.