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Solana’s Price Will Explode, Challenging Ethereum’s Market Dominance – VanEck

Solana’s Price Will Explode, Challenging Ethereum’s Market Dominance – VanEck

Cryptodnes2024/09/26 08:51
By:Cryptodnes

A recent report from VanEck suggests that Solana could reach a price of $330, potentially achieving half of Ethereum’s current market value.

The prediction is largely based on Solana’s impressive transaction speed and processing capabilities.

The report highlights Solana’s ability to handle thousands of transactions per second (TPS), which is over 3,000% faster than Ethereum . Additionally, Solana’s active user count is 1,300% higher, and its transaction fees are significantly lower – almost 5 million percent cheaper than Ethereum’s.

These advantages, particularly in speed and cost, position Solana as a strong competitor to Ethereum, especially for payments and remittances. Stablecoins, crucial to decentralized finance, could benefit from Solana’s superior performance, offering cost savings to users.

READ MORE:
Traders Shift Focus from Bitcoin to Promising Altcoins Amid Market Volatility

According to the report, retail investors are slowly realizing Solana’s potential as a smart contract platform that could rival Ethereum. However, institutional investors have been more hesitant to shift from established assets like ETH to the newer Solana, possibly due to a reluctance to leave behind the familiar.

Earlier in September, VanEck also analyzed Ethereum’s poor price performance, attributing it mainly to value extraction by Ethereum layer-2 solutions after the Dencun upgrade in March 2024, which drastically cut transaction fees for layer-2 networks. This, combined with a growing preference for faster layer-1 networks like Solana and Sui, has contributed to Ethereum’s declining revenues, despite its first-mover advantage.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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