In recent years, the Solana blockchain witnessed a series of challenges from network halts to the crypto winter and the downfall of the FTX exchange.
However, it’s making a comeback with 100% uptime this year and a significant increase in total value locked (TVL) in decentralized finance (DeFi), reaching $415 million from $210 million at the start of 2023. Perhaps some believe that Solana could be the Next Ethereum.
Solana Catching Up with Ethereum
Solana is making a comeback, catching the eye of sceptics who are now cheering for SOL. After a recent price surge that saw $SOL jump almost 400% from its lows in late 2022, critics are turning into supporters. But, when stacked against Ethereum, many believe that it could be the next Ethereum or surpass it.
Even though Solana’s TVL has aggressively climbed, reaching $415 million at the beginning of 2023, it’s important to note that it still has quite a journey ahead to hit its all-time highs. Comparatively, it’s nowhere near Ethereum’s impressive $24.4 billion.
Meanwhile, in terms of developer activity Solana rank 5th among the most developed ecosystem, but it trails behind Ethereum, Polkadot, and Cosmos, sitting 50% lower than a year ago.
Notable companies have already taken this step, with Visa announcing in September 2023 that it would incorporate Solana as a settlement layer to enhance cross-border USDC stablecoin payments.
Additionally, global e-commerce giant Shopify revealed its integration of the Solana Pay system in collaboration with Mastercard. These strategic moves by major players signal a growing acceptance of Solana’s capabilities and potential impact on the broader financial landscape.
Revealing Daily Activity
Solana shines in daily transactions, surpassing Ethereum by 15-20 times, thanks to low fees and fast transaction times. However, when focusing on actual users, Solana needs more users to catch up with Ethereum.
Even with Layer2 networks on Ethereum, the scale of activity and transaction value remains higher in Ethereum’s favor.
As Solana keeps going, it’s showing it can handle challenges and grow. But calling it “the next Ethereum” means it has to fill some big gaps in different things. The surge in support and positive metrics signals potential, but a balanced perspective is essential when assessing its progress.