Fun

Bank of America Says Solana Could Take Market Share From Ethereum, Become the Visa of the Crypto Ecosystem

News Feed - 2022-01-16 09:01:17

Bank of America Says Solana Could Take Market Share From Ethereum, Become the Visa of the Crypto Ecosystem


Bank of America’s analyst says that Solana could take market share away from Ethereum. Noting that Solana is optimized for micropayments, gaming, and non-fungible tokens (NFTs), the analyst expects “Solana could become the Visa of the digital asset ecosystem.” Bank of America on Crypto, Ethereum, and Solana


Bank of America (BOFA) analyst Alkesh Shah published a research note on cryptocurrency this week arguing that Solana could take market share away from Ethereum.


The Bank of America analyst described that Solana “produces a blockchain optimized for consumer use cases by prioritizing scalability, low transaction fees and ease of use,” citing Solana Foundation member Lily Liu.


Its ease of use and low cost make the crypto optimized for micropayments, gaming, and non-fungible token (NFTs). With more than 50 billion transactions settled since its March 2020 launch, and $10 billion in total value locked, Shah said: Solana could become the Visa of the digital asset ecosystem.


Solana is the fifth-largest cryptocurrency with a market capitalization of about $46 billion. Ethereum is the second-largest crypto with a market cap of almost $400 billion at the time of writing based on data from Bitcoin.com Markets.


Noting that Solana’s differentiation from Ethereum is “proving successful,” Shah noted that the valuation gap provides an opportunity for Solana. Its Proof of History blockchain helps improve the performance of its Proof of Stake consensus mechanism, the Bank of America analyst opined, noting: 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.


Meanwhile, the Ethereum blockchain prioritizes decentralization and security, at the expense of scalability, Shah described, adding that Ethereum’s scalability issue has led to periods of network congestion and ultra-high transaction fees.


Emphasizing that other scalable blockchains could chip away at Ethereum’s market share, Shah explained: Ethereum’s prioritization could optimize it for high-value transactions and identity, storage and supply chain use cases.


Crypto exchange Coinbase recently predicted that “ETH scalability will improve.” However, “As we welcome the next hundred million users to crypto and Web3, scalability challenges for ETH are likely to grow.”


Last week, a JPMorgan analyst explained that Ethereum’s Merge and Layer 2.0 introduction will speed up transactions and could significantly cut energy consumption. However, another JPMorgan analyst noted that Ethereum might lose its decentralized finance (defi) dominance due to scaling issues.


Meanwhile, Solana is not without its problems. Last week, Bitcoin.com News reported that the Solana network experienced “degraded performance due to an increase in high compute transactions … This is leading to increased loading and transaction processing times, and some failed transactions.” Tags in this story Bank of America, bank of america analyst, bank of america ethereum, bank of america solana, Bofa, BOFA analyst, ethereum market share, solana taking ethereum, solana visa of crypto, solana vs ethereum


Do you agree with Bank of America that Solano will take market share from Ethereum and become the Visa of crypto? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Vitalik Buterin Asks Twitter Followers Which Crypto They Prefer to Overtake Ethereum — Cardano, Tron Favorites ALTCOINS | 6 hours ago Stablecoin USDC"s ERC20 Issuance Surpasses USDT"s Total Supply on Ethereum ALTCOINS | 16 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleMeme Coin Markets Gain Close to 5% in 24 Hours, Dogecoin’s Value Jumps, 3 Meme Tokens See Triple Digit Gains Next articleVitalik Buterin Asks Twitter Followers Which Crypto They Prefer to Overtake Ethereum — Cardano, Tron Favorites Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNear Foundation Raises $150 Million to Bolster Web3 Adoption


On Thursday, the Near Foundation announced the project has raised $150 million from strategic investors such as Three-Arrows Capital, a16z, Mechanism Capital, Dragonfly Capital, and Circle Ventures. Following the announcement, the Near protocol’s native crypto asset jumped more than 7% ... read more.Revolut Launches Banking Services in Spain Featuring Deposit Insurance Swiss National Bank Trials CBDC in Transactions With Five Banks Kingdom of Tonga May Adopt Bitcoin as Legal Tender, Says Former Member of Parliament FTX Launches $2 Billion Venture Capital Fund Focused on Bolstering Blockchain, Web3 Adoption

News Feed

From Mercedes F1 to Miami Heat, Sports Teams Suspend FTX Sponsorships
From Mercedes F1 to Miami Heat, Sports Teams Suspend FTX Sponsorships A string of organizations competing in various sports are pulling out of sponsorship deals with beleaguered cr
Former Microsoft Engineer to Serve 9 Years in Prison in a Case That Involves Use of Bitcoin Mixers
Former Microsoft Engineer to Serve 9 Years in Prison in a Case That Involves Use of Bitcoin Mixers A U.S. court in Seattle has sentenced a former Microsoft engin
Ethereum Sees $1 Billion Exchange Outflow Alongside Bitcoin: What This Means For Price
Este artículo también está disponible en español. Ethereum has witnessed a huge surge in on-chain activityin the past week, with data showing an accumulation trend from c
Akt.io Shows How DeFi Is Shaping the Future and Why Financial Institutions Are Ripe for Disruption
Akt.io Shows How DeFi Is Shaping the Future and Why Financial Institutions Are Ripe for Disruption sponsored Investing has become mandatory for those who want to secure their financ
Boerse Stuttgart: New German Crypto Regulation Poised to Attract Institutional Investors
Boerse Stuttgart: New German Crypto Regulation Poised to Attract Institutional Investors Since the new German crypto regulation went into effect, financial institutions in German
Blockchain.com Reveals Non-Fungible Token Marketplace and NFT Explorer
Blockchain.com Reveals Non-Fungible Token Marketplace and NFT Explorer The crypto firm Blockchain.com is joining the slew of digital currency exchanges that have launched non-fungi
25% of US Adults Plan to Start Investing in Crypto, Survey Shows
25% of US Adults Plan to Start Investing in Crypto, Survey Shows A U.S. consumer survey shows that 25% of respondents who currently do not own cryptocurrency plan to start investin
Spanish Crypto Exchange 2gether Won’t Reimburse All Stolen Funds From the 2020 Hack
Spanish Crypto Exchange 2gether Won"t Reimburse All Stolen Funds From the 2020 Hack Spanish cryptocurrency exchange 2gether has announced that it won’t com
World Wide Web Inventor Tim Berners-Lee Says Crypto Is ‘Really Dangerous’ but Can Be Useful for Remittances
World Wide Web Inventor Tim Berners-Lee Says Crypto Is "Really Dangerous" but Can Be Useful for Remittances World Wide Web inventor Sir Tim Berners-Lee says cryptocurrency is ̶
US Resident Operated Illegal Bitcoin Exchange Business – Faces 25 Years in Jail
US Resident Operated Illegal Bitcoin Exchange Business - Faces 25 Years in Jail An Ontario man based in San Bernardino County of the U.S. has agreed to plead gui
EOS Maker Block.One Expands US Footprint With DC-Area HQ
Block.One, the software company behind the EOS blockchain, will expand its U.S. footprint with a new headquarters and a $10 million investment in Arlington County, Va. Virginia Gov.
India’s Central Bank Chief: Cryptocurrencies Will Cause Next Financial Crisis if They’re Not Banned
India"s Central Bank Chief: Cryptocurrencies Will Cause Next Financial Crisis if They"re Not Banned The governor of India’s central bank, the Reserve Bank of India (RBI), has