- It is important to note that Solana transactions are very popular among NFT creators as they appear relatively cheap on the market.
- According to data, Ethereum was running several DeFi applications on its network at the start of the bull market.
Many people identify Solana (SOL) as the Ethereum killer. For a while it was the second largest network on the market.In fact, data I will explain Solana has so far processed as many Non-Fungible Token (NFT) transactions as Ethereum and is not far behind Ethereum. It is important to note that Solana transactions are very popular among NFT creators as they appear relatively cheap on the market.
Ethereum, on the other hand, has been criticized because users pay transaction fees as high as $150 for a single operation. This is a complete turn-off for users looking to get maximum benefit with minimum input.
The same is true for the decentralized finance (Defi) industry.
According to data, Ethereum was running several DeFi applications on its network at the start of the bull market. At the peak of the market in November, alternative networks such as Solana and Layer 2 dominated the volume of distributed solutions. A complete migration to Solana was due to the high transaction costs incurred on the Ethereum network.
it was news to me @solana ran the same number #NFTs transaction as @Ethereum To date (h/t @our network__) pic.twitter.com/LORXavqc4g
— Chris Burniske (@cburniske) December 10, 2022
In addition to the fees, Solana can process more transactions per second. Regardless, Ethereum is far superior in terms of value.
Solana is pretty underrated
SOL has a market cap of $4 billion and is currently trading at $13, down about 94% from its all-time high of $259. This is just a fraction of Ethereum’s $153 billion market cap. However, experts believe SOL has an easier path to massive growth due to its smaller market cap.
Both networks recorded an outflow of funds led by the DeFi and NFT industries as the market plummeted.
The bear market hit Solana hard and lost a lot of its value. In fact, unlike Ethereum, which has maintained a bear market with network updates and developments, recovery will have to go beyond retail investor support.
Solana is expected to rebound in future bull markets as its price is said to misrepresent its underlying technology. The anonymous host of InvestAnswers said in one of his recent YouTube videos that Solana is underrated.
Comparing Solana and Ethereum, technically, they should be much higher on a relative value basis. Again, let’s look at the data. We look at quants, we look at metrics, we measure everything. That’s how we make decisions. Nothing about feelings, people’s feelings, or what kind of religion or tribe they belong to. we just look at the data.