Will Solana Finally Dethrone Ethereum?

July 6, 2022 10:08 am Comments

Ethereum within the last few years has been the go-to altcoin for many cryptocurrency holders, but due to the high gas fees, many crypto users have turned to Solana.

As of right now, ETH has a  much larger market cap which sits at $135,702,322,417 whereas Solana has a market cap of $12,341,486,823.

But despite ETH having a more lucrative market cap, many market analysts within the cryptocurrency world believe Solana will surpass Ethereum in the near future.

One of the reasons holders are placing their bets on Solana rather than Ethereum is due to the fact just in the last week Solana has surpassed Ethereum in transactions.

Last week Solana had over 630,000 transactions compared to Ethereum’s 500,000.

Solana’s transaction growth comes as a direct result of  Solana gaining a big foot in the market share of the NFT and crypto gaming communities.

Bitcoinist had more on the story:

Solana has been gradually creeping up behind Ethereum even before the crypto winter began. The network had grown in popularity among non-fungible token (NFT) and decentralized finance (DeFi) users who had been fleeing Ethereum due to the high cost of transacting on the network. Nevertheless, Ethereum had managed to maintain its lead ahead of Solana. That is until now when the latter has barreled ahead.

One major area in which Ethereum has consistently dominated has been the volume of transactions being carried out on the network. Other DeFi and NFT networks have had to battle for the second position but Solana has brought the fight to the fore as the crypto winter rages on. The network has seen transaction volumes soar higher than that recorded on the Ethereum blockchain, making it the smart contract network with the most transactions.

This comes even as transaction fees on the Ethereum network have dropped to two-year lows. Despite this, the cost of transactions on Solana remains incredibly low compared to Ethereum, making it enticing for users. It also means that Solana is better for carry out small transactions given that users do not have to worry about paying more in gas fees than the amount that they are actually moving across the blockchain.

Solana transaction figures came out to about 630,000 transactions for the last week. While Ethereum’s had come out lesser than 500,000, meaning that Solana transactions had surpassed that of Ethereum by more than 30% for the last 7-day period.The transaction volume is not the only way that Solana is giving Ethereum a run for its money. As the NFT space continues to grow, Solana has been capturing a larger market share. This has been made possible with the NFT marketplace, Magic Eden, which has garnered popularity due to a number of successful SOL launches such as DeGods and Okay Bears collections.

Crypto News Flash dropped these details:

The trading volume of Decentralized Finance (Defi) and Non-Fungible tokens (NFT) has recently been at a low due to the effect of bears dominating the crypto market. However, the last seven days have seen Solana making a remarkable move to top Ethereum in total transactions. According to reports, Solana saw almost 630,000 transactions in the last seven days compared to the little under 500,000 transactions on Ethereum.

This is considered a huge achievement for the asset even though its Total Value Locked was much lower compared to Ethereum. In addition, activities on the Solana network were around 32 percent higher than on the Ethereum network. Regardless, both networks recorded a decline in NFT transactions compared to the figures in May. The highest volume recorded on Magic Eden, an NFT Marketplace on Solana and a competitor to OpenSea in the last two months is 380K SOL ($12.6 million) and was recorded in May. Interestingly, the daily NFT purchase has also decreased by 78 percent over the same period.

OpenSea is also experiencing a similar situation on Ethereum. It saw its daily volume of NFT transactions on Ethereum drop to $15 million on July 3 from its peak of $476 million in May. Transaction volume decreased from $2.59 billion to $696 million (April to May). As of now, OpenSea has only recorded $43 million worth of volume this month. It is likely that the market would record only $344 million in transactions by the end of this month.

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