Solana (SOL) is still the leading competitor to Ethereum (ETH) and a smart contracts platform with great potential, according to the great cryptocurrency analyst, Invest Answers, who addressed his 436,000 YouTube subscribers and explained the reasons why he believes this.
He pointed out that from the first time he analyzed Solana he adopted it as his protection against a possible Ethereum collapse.
The advantages of Solana
He emphasized that Solana has only 1/12th of Ethereum’s market capitalization, but “does a lot of things” and described its advantages over Ethereum:
“Solana’s strength and the reason I still like it is that it has the largest range of DApps [decentralized applications] of any other chain out there. It has an exponential adoption. It’s fast, cheap and scalable – despite the interruptions.”
It also has Rust, the most preferred development language that drives the most development activity in any chain.
It also has 65,000 transactions per second and does not require layer-2.
The analyst notes that Solana outages are a potential issue. Solana suffered a network outage in late April when the project’s beta mainnet cluster “stopped generating blocks as a result of delayed consensus,” according to Solana Labs.
The outage came after Solana experienced previously publicized network and performance issues in December and January, as well as a previous outage last September.
The advantages of Ethereum
InvestAnswers notes, however, a major disadvantage of Solana as it has a higher inflation rate than Ethereum.
It also notes that Ethereum’s advantages are its larger size, the fact that it is the first smart contracts platform to be operational and therefore has that edge, as well as its higher adoption rate. He also added that Ethereum has the most validators and is more decentralized and faces less regulatory risk.
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