Alkesh Shah – analyst at Bank of America – predicted Solana could continue to steal some of Ethereum’s market share as it’s easy to use and has significantly lower transaction fees. The strategist further asserted that Solana could become “the Visa” of the cryptocurrency industry.
High Hopes for Solana
Solana has been one of the top-performing cryptocurrency projects in the past 12 months. Its native token has increased its USD value by nearly 4,300% in one year and is currently sitting as the fifth-largest digital asset with a market capitalization of roughly $50 billion.
Despite this significant advancement, the protocol could reach new heights soon, Alkesh Shah from Bank of America opined. He argued that Solana is superior to some of its rivals as it offers low transaction costs and enhanced scalability relative. Moreover, it utilizes both proof-of-stake and proof-of-history technology, granting it further advantages.
Thanks to its differentiated design, Solana could take market share away from Ethereum, Shah said. It is worth noting that the latter is still functioning under the proof-of-work mechanism. Ethereum transactions per second are also considerably slower than Solana’s.
“These innovations allow for the processing of an industry-leading ~65,000 transactions per second with average transaction fees of $0.00025 while remaining relatively decentralized and secure,” Shah said regarding Solana’s speed.
Subsequently, the analyst made the bold prediction that the fifth-biggest cryptocurrency project could one day serve as “the Visa of the digital asset ecosystem.”
He explained this could occur because the protocol successfully facilitates micropayments. It also plays a vital role in the gaming and non-fungible token universe.
Solana Could Be The Next Bitcoin
The Founder of the cryptocurrency exchange FTX – Sam Bankman-Fried – is also a keen proponent of the blockchain project. Not long ago, he said Solana had “a real shot” at becoming the next most dominant digital asset project because of its speed of scaling.
Another advantage that Solana has is the fact that it is green-focused. According to a recent report, it is actually less harmful to the environment than the web browsing giant Google. The statement estimated that two Google searches consume more energy than one transaction on the Solana network.
It does not end there. A single transaction on Solana consumes 24 times less energy than charging a mobile phone. In fact, the project’s network uses around 3,186,000 kWh per year, which is equivalent to the average electricity usage of 986 households in the USA.