Bank of America Says Solana Could Take Market Share From Ethereum, Become the ‘Visa of the Digital Asset Ecosystem’

Bank of America’s expert says that Solana could instrumentality marketplace stock distant from Ethereum. Noting that Solana is optimized for micropayments, gaming, and non-fungible tokens (NFTs), the expert expects “Solana could go the Visa of the integer plus ecosystem.”

Bank of America connected Crypto, Ethereum, and Solana

Bank of America (BOFA) expert Alkesh Shah published a probe enactment connected cryptocurrency this week arguing that Solana could instrumentality marketplace stock distant from Ethereum.

The Bank of America expert described that Solana “produces a blockchain optimized for user usage cases by prioritizing scalability, debased transaction fees and easiness of use,” citing Solana Foundation subordinate Lily Liu.

Its easiness of usage and debased outgo marque the crypto optimized for micropayments, gaming, and non-fungible token (NFTs). With much than 50 cardinal transactions settled since its March 2020 launch, and $10 cardinal successful full worth locked, Shah said:

Solana could go the Visa of the integer plus ecosystem.

Solana is the fifth-largest cryptocurrency with a marketplace capitalization of astir $46 billion. Ethereum is the second-largest crypto with a marketplace headdress of astir $400 cardinal astatine the clip of penning based connected information from Bitcoin.com Markets.

Noting that Solana’s differentiation from Ethereum is “proving successful,” Shah noted that the valuation spread provides an accidental for Solana. Its Proof of History blockchain helps amended the show of its Proof of Stake statement mechanism, the Bank of America expert opined, noting:

These innovations let for the processing of an industry-leading ~65,000 transactions per 2nd with mean transaction fees of $0.00025, portion remaining comparatively decentralized and secure.

Meanwhile, the Ethereum blockchain prioritizes decentralization and security, astatine the disbursal of scalability, Shah described, adding that Ethereum’s scalability contented has led to periods of web congestion and ultra-high transaction fees.

Emphasizing that different scalable blockchains could spot distant astatine Ethereum’s marketplace share, Shah explained:

Ethereum’s prioritization could optimize it for high-value transactions and identity, retention and proviso concatenation usage cases.

Crypto speech Coinbase precocious predicted that “ETH scalability volition improve.” However, “As we invited the adjacent 100 cardinal users to crypto and Web3, scalability challenges for ETH are apt to grow.”

Last week, a JPMorgan expert explained that Ethereum’s Merge and Layer 2.0 instauration volition speed up transactions and could importantly chopped vigor consumption. However, different JPMorgan expert noted that Ethereum mightiness suffer its decentralized concern (defi) dominance owed to scaling issues.

Meanwhile, Solana is not without its problems. Last week, Bitcoin.com News reported that the Solana web experienced “degraded show owed to an summation successful precocious compute transactions … This is starring to accrued loading and transaction processing times, and immoderate failed transactions.”

Do you hold with Bank of America that Solano volition instrumentality marketplace stock from Ethereum and go the Visa of crypto? Let america cognize successful the comments conception below.

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