Is Solana cryptocurrency a better investment than Ethereum?
How did a cryptocurrency that was launched in March 2020 rank among the top 10 cryptocurrencies in just 18 months?
Solana is a programmable blockchain, just like Ethereum. This is one of the primary reasons why the two are often directly compared.
A programmable blockchain uses smart contracts to increase its usability. Here is an example of how smart contracts increase efficiency:
A credit-lending firm automatically updates your latest payslip and upgrades the amount of loan that you are eligible for. This is possible through smart contracts that compute your eligibility based on verified data sources, protecting both you and the credit lender.
For programmable blockchains, the number of transactions processed makes a substantial impact on the efficiency of the projects. After all, no one likes slow internet either.
Here is where Solana comes in. Processing over 65,000 transactions per second (TPS), Solana leaves Ethereum biting the dust because of Ethereum’s 15 to 45 TPS capacity. Even Visa’s processing speed remains at about 24,000 TPS. This makes Solana one of the fastest programmable blockchains, which is a major contributor to its rapid growth.
Additionally, Solana offers this speed at an extremely low average transaction cost of $0.00025. Compared to Ethereum’s ‘gas fee’ which is a highly volatile transaction cost, Solana becomes the obvious preference.
Must Read: Can Solana Network Replace Ethereum ?
With over 600 projects, Solana has established itself in the cryptocurrency market. Degenerate Ape Academy, one of the most popular projects of Solana, crossed 7-figure sales, of which 10,000 NFT sales were made within 10 minutes.
Solana also leaves a significantly lower carbon footprint than Ethereum, making it extremely sustainable, which sits well with various organizations.
Does this mean investing in Solana now could result in another 100% jump within a month?
Let’s not forget the risk involved in fast-growing cryptocurrencies.
While it may seem like Ethereum is no match for Solana’s raging success, Ethereum still occupies double the market cap of Solana, leaving a long way to go for Solana to catch up.
Another important factor to consider is the number of upgrades that Ethereum is coming up with. Ethereum has also announced another update in early 2022 which will increase its processing speed to a whopping 1,00,000 TPS. Ethereum prices in India saw considerable growth after the launch of its recent upgrade.
The competition between the two popular cryptocurrencies is truly neck and neck.
Should you buy Ether or Solana?
Depending on your risk appetite, you can plan your investment. While Solana is fairly new, making historical analysis difficult, Solana is backed by reputed investors. Solana also offers the chance of earning interest through crypto staking.
Ethereum’s upgrade in 2022 will surely be one to watch out for. However, seasoned investors collectively agree that both cryptocurrencies will show record growth and co-exist in a healthy competitive environment. This will increase the overall investments in cryptocurrencies. Start your crypto journey now by choosing the best cryptocurrencies exchanges for safe and hassle-free transactions, such as ZebPay.