Ethereum is much bigger than Solana, however, Solana offers incredible promise.
Ethereum launched in 2015, while Solana was born in 2020.
Despite the five-year gap, Solana is sometimes referred to as the “Ethereum Killer” due to its fast speeds and scalability.
Ethereum’s total value is $35.1 billion, while Solana’s is $1.53 billion.
Although these numbers change daily, it is easy to see how Ethereum is significantly ahead of Solana.
What Is Solana Backed By?
Some forms of cryptocurrency have physical assets underlying their value.
However, Solana derives value from many factors, including demand and useability.
For instance, SOL tokens were expensive in 2021 because it was an excellent platform for NFTs.
Due to the heightened demand and usability, the value of SOL tokens increased significantly.
Solana also receives support from Venture Capitalists, keeping the project afloat.
Is Solana Better Than Ethereum?
It’s imperative to understand the specific needs of your activity on the blockchain when comparing Solana with Ethereum. Let’s look into some benefits Solana has over Ethereum.
Many of us hate paying transaction costs. Solana is known for the low transaction costs that it charges. A $2 million transaction on Solana would cost approximately $20, while Ethereum would charge almost $600,000 at $6.86 per transaction.
Solana provides exceptional performance without relying on any layer-2 or off-chain solutions, in contrast to Ethereum, which depends on Polygon’s Plasma Chains, a layer-2 solution.
The Solana blockchain is one of the few layer-1 protocols that is resistant to the mass exodus issue.
Solana’s average block time is 600 milliseconds, whereas in Ethereum platform, the average time to add a new block to the blockchain is 15 seconds.
Additionally, some institutional entities have expressed interest in this exceptional speed.
Can Solana and Ethereum Co-exist?
Yes, Solana can co-exist with Ethereum just like Android and iOS.
Ethereum’s huge expenses and slow transaction speed offered an approach to alternatives like Solana. However, these improvements are not a danger to Ethereum’s growth.
The effect of their co-existence will be restricted to a couple of levels of lifts on the lookout and nothing more generous.
They have distinctive development rates. Solana’s development rate could be higher than Ethereum’s in the not-so-distant future.
Regardless of whether or not Solana can overtake Ethereum, the two can coexist. Due to the framework it has fabricated, Ethereum isn’t going anywhere.