Solana (SOL) year-to-date performance is a staggering 1,950% gains while Ethereum (ETH) year-to-date returns stand at just 252%. After the crash, both the cryptocurrencies have embarked on an upward trend – although the trend has yet to be confirmed by further price actions. The stark difference in the growth of both cryptocurrencies will clearly give a preference to Solana. However, the difference in the price levels may be accounted for the difference in growth as Solana has a much lower price, it has more room for growth. At the time of writing, Solana stands at a price level of $31 while Ethereum is trading hands at $2,613.
The debate – ETH vs. SOL
Solana (SOL) has also been debated to have the potential to one day overtake the queen of the market – Ethereum. Two crypto experts Kain Warwick and Kyle Samani, in a podcast “The Unchained”, have discussed the threat that Solana along with Binance Smart Chain pose to Ethereum. Warwick has postulated that Solana with its stability and predictability can possibly surpass Ethereum. Both Binance Smart Chain and Solana have been gaining organic traction.
Although Ethereum’s upgrade ETH2.0 is one of the highly anticipated events, Samani has put forward the concerns that he has with the upgrade. At the moment, the future of Ethereum look quite uncertain. Nobody has any idea with dApps would look like with the scaling solution that Ethereum is looking to provide. This uncertainty may lead to users flocking towards Solana and other smart contract platforms.
A hallmark step for Solana is one of its projects being backed by a leading accelerator. Mercurial Finance is now being backed by DeFi Alliance – a startup accelerator. Mercurial Finance is the first Solana-based project being supported by the notable accelerator which has had mentors like Coinbase. Mercurial Finance is working on building a platform for stablecoins with a competitive edge of dynamic fees and dynamic allocation of slippage.
Moreover, OpenOcean is bringing its DEX aggregation protocol into Solana. The aggregator recently announced its plans to expand into Solana network. OpenOcean will bring DeFi and CeFi liquidity into Solana which will allow users to enjoy lower gas fees and better yields.
In conclusion, at this moment, it may look like a plausible argument. However, Ethereum did not become the queen of the market overnight. So, for any project to overtake Ethereum, it would not be an easy feat.