Alkesh Shah – an analyst at Bank of America – predicted that Solana could continue to steal some of Ethereum’s market share as it is easy to use and has significantly lower transaction fees. The strategist further claimed that Solana could become “the Visa” of the cryptocurrency industry.
High hopes for Solana
Solana has been one of the best performing cryptocurrency projects over the past 12 months. Its native token has increased its USD value by nearly 4,300% in one year and is currently the fifth-largest digital asset with a market capitalization of around $50 billion.
Despite this significant advance, the protocol could soon reach new heights, said Bank of America’s Alkesh Shah. He argued that Solana is superior to some of its rivals as it offers low transaction costs and improved scalability compared. Moreover, it uses both proof-of-stake and proof-of-history technology, which gives it other advantages.
With its differentiated design, Solana could take market share from Ethereum, Shah said. It should be noted that the latter still works as part of the proof-of-work mechanism. Ethereum transactions per second are also considerably slower than Solana.
“These innovations enable industry-leading processing of approximately 65,000 transactions per second with an average transaction fee of $0.00025 while remaining relatively decentralized and secure,” Shah said of the launch. speed of Solana.
Subsequently, the analyst made the bold prediction that the fifth-largest cryptocurrency project could one day serve as the “Visa of the digital asset ecosystem.”
He explained that this could happen because the protocol successfully facilitates micropayments. It also plays a vital role in the world of games and non-fungible tokens.
Solana could be the next Bitcoin
The founder of the FTX cryptocurrency exchange – Sam Bankman-Fried – is also a strong supporter of the blockchain project. Not too long ago, he said that Solana had “a real chance” of becoming the next most dominant digital asset project because of its scaling speed.
Another advantage of Solana is the fact that it is environmentally focused. According to a recent report, it is actually less harmful to the environment than web browsing giant Google. The statement estimates that two Google searches consume more energy than one transaction on the Solana network.
It doesn’t stop there. A single transaction on Solana consumes 24 times less energy than recharging a mobile phone. In fact, the project’s grid uses approximately 3,186,000 kWh per year, which is equivalent to the average electricity consumption of 986 homes in the United States.
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