The crypto market is booming. What started with bitcoin back in 2009 has evolved into an entire market made up of thousands of different cryptocurrencies.
Bitcoin is still king with the largest market cap. And in the number two slot is Ethereum.
The Ethereum network was built as the foundation on which other developers could come and build their decentralized applications. Unfortunately, Ethereum’s success in many areas has led to failures in others.
This has led to the rise of Ethereum rival Solana to soar in recent months. But what is this new cryptocurrency and how does it beat out the king of Defi? Keep reading below to find out now.
Problems With Ethereum
Ethereum is a popular cryptocurrency that saw massive gains in recent years. It’s a network that prioritizes security and decentralization. Unfortunately, the immense popularity of Ethereum has caused some major flaws.
Since so many people are using the network to make Ethereum-based transactions, the network is congested. This means that transactions take much longer to confirm. Often minutes (or even longer) just to make a transfer or NFT purchase.
But the biggest problem is the transaction fees. People complained about transaction fees back when they were $5 and $10. Today, it’s very normal to drop over $100 on a single transaction.
Moving funds around on Ethereum blockchain technology is too expensive for many users.
Ethereum Centralization
Ethereum on its own is decentralized in nature. No one controls it. It’s governed by the community. However, many people claim it’s centralized simply because it dominates a large share of the market.
The world of decentralized finance exists primarily on Ethereum. And the bulk of the NFT industry lives on Ethereum, in excess of 80%.
Because so much is happening on Solana, it feels like many of the users and funds in the crypto world are stuck in Ethereum. Supporters of Solana and other Ethereum killers claim that these rival networks are essential to a healthy crypto market as a whole.
The Rise of Ethereum Rival Solana
The Solana blockchain and network were created as a direct alternative to Ethereum. Built years later, Solana and SOL coin has some major upper hands as it develops its network.
The team behind Solana was able to learn what Ethereum did and what led to the major problems it’s experiencing today.
The result is a crypto network that is insanely fast, and able to handle thousands of transactions per second. And each transaction is incredibly cheap, often fractions of a penny.
The user experience on Solana is very positive. The only negative about it is that it’s still new. There’s not as much development on Solana yet, so options for using various apps are still limited.
But that is going to change as more and more developers move to the Solana ecosystem. And as that happens, you can expect the Solana price to soar.
Competition Makes Everything Better
Solana is still relatively new. But it’s clear that this Ethereum rival and many others like it are here to stay.
Ethereum will likely be king for a long time. But alternative networks like Solana and Avalanche are crucial to creating a truly decentralized, competitive marketplace that ultimately benefits users and investors.
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