Solana's cryptocurrency is said to be able to overtake the popularity of ethereum and develop into a 'visa' in the digital asset ecosystem. This means, like ethereum, this one cryptocurrency may be used for various digital transactions globally.
According to Coindesk, Bank of America analyst Alkesh Shah said in a note that the cryptocurrency Solana could take market share from Ethereum thanks to its different design as it focuses on scalability, low transaction fees, and ease of use.
“Solana prioritized scalability, but relatively less decentralized and secure blockchains had trade-offs, illustrated by some of the network performance issues early on,” said Shah.
While on the other hand, it is said that the cryptocurrency ethereum (which is currently commonly used for global digital transactions such as NFT purchases, online auctions, etc.) only prioritizes decentralization and security but sacrifices scalability, so the transaction fees tend to be more expensive.
“Ethereum prioritizes decentralization and security, but at the expense of scalability, which has led to periods of network congestion and transaction fees that are sometimes greater than the value of the transactions sent.”
Therefore, Bank of America argues that Solana and other blockchains may seize market share from Ethereum over time, and will begin to differentiate themselves through user adoption and developer interest.
For information, Solana has experienced strong adoption and is growing rapidly since its launch in 2020. It has managed to become the fifth largest cryptocurrency, with a market capitalization of US$ 47 billion or equivalent to IDR 672.1 trillion (when calculated at the exchange rate).