Solana (SOL) vs. Ethereum: Analyst Pits ETH Against One of Its Biggest Competitors
A prominent crypto analyst is examining how an emerging blockchain designed for scalability compares to the leading smart contract platform.
A prominent crypto analyst is examining how an emerging blockchain designed for scalability compares to the leading smart contract platform.
The analyst continues to look at the overall market capitalization, noting that Solana's significantly smaller size compared to Ethereum's valuation plus the Polygon blockchain scaling solution (MATIC) suggests that SOL is valued. significantly lower than ETH.
“This is the million dollar question. If you look at the hunt for value… I've discovered things like Tesla [and] Google before they've had a big run and that's the key here. You have to get into things early before they have big runs.
If you consider this asset's relative value relative to others, consider only the market capitalization. If you combine the market capitalization of Ethereum and MATIC, it will be 17 times larger than Solana. Does it do 17 times more? No. That is my opinion. "
The InvestAnswers organization continues to dig into what constitutes the ecosystem of each project, starting with Ethereum dating back to 2015.
“Ethereum has a huge ecosystem. I estimate it to be three times the size of the Solana ecosystem. It's like 3,000 DApps compared to about a thousand DApps, but since Ethereum was the first successful smart contract platform, it's off to a huge start, almost 5 years ahead of all other protocols in the space. smart contracts, layer 1 space…
Ethereum's long-term strategy is favorable because the technology is not only groundbreaking but also based on its foundation with incredible growth potential and community largest co-developers of all cryptocurrencies. ”
The analyst noted that Solana, which was founded in 2017 and created its first block in 2020, is still in its early stages despite experiencing tremendous growth as a company. in the top 10 cryptocurrencies. He hopes the project will continue to grow and gain even more market share from Ethereum.
“However, Solana is catching up on this aspect. Some [of them] are still very young, there is about a billion dollars in TVL [total value locked up]. I think it's $1.4 billion or something right now and it's small compared to $35 billion on Ethereum. ”
At the time of writing, Ethereum is up 7.74% on the day and is priced at $1,530. Solana is up nearly 7% and trading for $31.96.
Aug 30, 2022
