Solana Predicted to Eat Away at Ethereum’s Market Share by Bank of America

AnalysisSolana Predicted to Eat Away at Ethereum's Market Share...



Alex Dovbnya

Bank of America analyst Alkesh Shah believes that Ethereum will continue losing its dominance to Solana

In his recent research note, Bank of America analyst Alkesh Shah predicted that Ethereum would continue losing its market share to rival Solana.

Even though 2021 was a banner year for Ethereum, its performance was overshadowed by Solana.

SOL was up more than 2,200% against ETH last year, with its native blockchain emerging as one of the leading contenders for the smart contract crown. With that being said, the SOL/ETH pair is down 8% this year, with the whole market enduring a significant correction.     

Shah believes that Solana could transform into a Visa-like behemoth, becoming the go-to payment protocol within the cryptocurrency industry.

Although Ethereum is more decentralized, Shah claims that it is not scalable enough, which drives up the cost of transactions. Hence, the analyst believes that scalability is a reasonable trade-off:

Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has trade-offs, illustrated by several network performance issues since inception.

Solana, however, has its own share of performance issues. The network went down on Sept. 14 due to a bug, exposing the fragility of the “Ethereum killer.” This wasn’t a one-off event: Solana also came to a halt on Dec. 4 for five hours. Earlier this month, the network started experiencing throughput issues.

JPMorgan is on the same page

As reported by U.Today, JPMorgan Chase analyst Nikolaos Panigirtzoglou also forecasted that Ethereum was at risk of being disrupted by the likes of Solana, Binance Smart Chain and Avalanche.

Panigirtzoglou argued that it would be too late for Ethereum to scale given that the shard chain phase will start next only next year.



Learn more

Latest news

Unlock The Entrepreneurial Potential Of Your Team With Employee-Ownership

A strong team of many outperforms even the most hardworking of entrepreneurs on their own. But when hiring...

This Group of Traders is Saving Bitcoin Market, Here’s Who They Are

Arman Shirinyan Thanks to long-term holders, Bitcoin is successfully going through bearish phase of market On his personal Twitter account,...

Why some of our ‘best company’ picks didn’t stay that way

Our Company of the Year isn’t necessarily the company of the decade.Costco (COST) is the 11th annual Yahoo...

Australian Crypto Exchange Swyftx Cuts 90 Jobs Amid Crypto Winter

The job cuts would equate to a reduction of almost 45% of Swyftx's workforce. Learn more

Bitcoin Sinks Further 70% in Standard Chartered List of Possible 2023 Upsets

(Bloomberg) -- Speculators cleaving to the view that the crypto rout is mostly over are at risk of...

Australian Crypto Exchange Announces Massive Layoffs

Alex Dovbnya Swyftx has fired more than a third of its staff, with the ongoing cryptocurrency winter becoming increasingly...

Must read

Unlock The Entrepreneurial Potential Of Your Team With Employee-Ownership

A strong team of many outperforms even the...

This Group of Traders is Saving Bitcoin Market, Here’s Who They Are

Arman Shirinyan Thanks to long-term holders, Bitcoin is successfully...

Why some of our ‘best company’ picks didn’t stay that way

Our Company of the Year isn’t necessarily the...

You might also likeRELATED
Recommended to you