Bank of America calls Solana “Visa of the digital asset ecosystem”

A starring fiscal institution, the Bank of America, has predicted that Solana could go the “Visa of the integer plus ecosystem,” which would alteration it to bargain much of the marketplace stock of Ethereum’s blockchain.

Solana would devour into Ethereum’s marketplace share

According to Alkesh Shah, an expert astatine the Bank of America, Solana’s simplicity, alongside its velocity positive its little transaction fees, would proceed to marque it charismatic for investors. This would alteration it to proceed to vie with Ethereum for investors’ and developers’ attraction alike.

SOL, the autochthonal token of the Solana blockchain, has been 1 of the best-performing assets of the past year. The plus saw its terms emergence by implicit 4000% wrong the past twelvemonth and it presently sits arsenic the 5th largest crypto plus by marketplace cap.

While Ethereum has continued to predominate DeFi and the NFT abstraction arsenic the astir utilized blockchain, the web has witnessed heightened rivalry from rivals similar Solana who boast higher transaction velocity and cheaper transaction fees.

CryptoSlate antecedently reported that these issues could pb to ETH losing its dominance to astute contract-enabled protocols similar Terra, Avalanche, and Solana.

Notably, this is not the archetypal clip that the Bank of America would beryllium endorsing different blockchains against Ethereum. Just recently, the slope opined that Avalanche would supply a credible alternate to Ethereum for DeFi protocols, NFTs, and different activities.

Why Solana stands retired amongst Ethereum’s rivals

Many analysts and crypto enthusiasts alike person labeled Solana arsenic the “Ethereum-killer.” While the blockchain has faced immoderate level of scrutiny and issues owed to the attacks connected its network, galore inactive judge that it is the blockchain that is susceptible of flipping Ethereum.

Sam Bankman-Fried, the CEO of FTX, successful 1 of his caller interviews, stated that Solana has a “real shot” astatine becoming a ascendant crypto blockchain due to the fact that of its scaling abilities.

Apart from its scaling advantage, Solana uses the proof-of-stake and proof-of-history mechanics which places it astatine an vantage implicit Ethereum which is inactive babelike connected the energy-intensive proof-of-work scheme.

This means that an mean transaction connected the Solana blockchain is not lone faster but besides consumes little energy than 2 Google searches combined.

Already, the fig of DeFi and NFT projects moving connected the Solana blockchain is present implicit 400 with Solana-based DeFi projects, grossing a TVL ATH of implicit $12 cardinal past year.