Bank of America Says Solana Could Take Market Share From Ethereum, Become the ‘Visa of the Digital Asset Ecosystem’ – Altcoins Bitcoin News

Financial institution of America’s analyst says that Solana may take market share away from Ethereum. Noting that Solana is optimized for micropayments, gaming, and non-fungible tokens (NFTs), the analyst expects “Solana may change into the Visa of the digital asset ecosystem.”

Financial institution of America on Crypto, Ethereum, and Solana

Financial institution of America (BOFA) analyst Alkesh Shah revealed a analysis word on cryptocurrency this week arguing that Solana may take market share away from Ethereum.

The Financial institution of America analyst described that Solana “produces a blockchain optimized for client use circumstances by prioritizing scalability, low transaction charges and ease of use,” citing Solana Basis member Lily Liu.

Its ease of use and low value make the crypto optimized for micropayments, gaming, and non-fungible token (NFTs). With greater than 50 billion transactions settled since its March 2020 launch, and $10 billion in complete worth locked, Shah mentioned:

Solana may change into 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 virtually $400 billion on the time of writing based mostly on knowledge from Bitcoin.com Markets.

Noting that Solana’s differentiation from Ethereum is “proving profitable,” Shah famous that the valuation hole supplies a possibility for Solana. Its Proof of Historical past blockchain helps enhance the efficiency of its Proof of Stake consensus mechanism, the Financial institution of America analyst opined, noting:

These improvements enable for the processing of an industry-leading ~65,000 transactions per second with common transaction charges of $0.00025, whereas remaining comparatively decentralized and safe.

In the meantime, the Ethereum blockchain prioritizes decentralization and safety, on the expense of scalability, Shah described, including that Ethereum’s scalability situation has led to intervals of community congestion and ultra-high transaction charges.

Emphasizing that different scalable blockchains may chip away at Ethereum’s market share, Shah defined:

Ethereum’s prioritization may optimize it for high-value transactions and identification, storage and provide chain use circumstances.

Crypto alternate Coinbase just lately predicted that “ETH scalability will enhance.” Nevertheless, “As we welcome the subsequent hundred million customers to crypto and Web3, scalability challenges for ETH are prone to develop.”

Final week, a JPMorgan analyst defined that Ethereum’s Merge and Layer 2.0 introduction will velocity up transactions and will considerably reduce vitality consumption. Nevertheless, one other JPMorgan analyst famous that Ethereum may lose its decentralized finance (defi) dominance as a consequence of scaling points.

In the meantime, Solana will not be with out its issues. Final week, Bitcoin.com Information reported that the Solana community skilled “degraded efficiency as a consequence of a rise in excessive compute transactions … That is resulting in elevated loading and transaction processing occasions, and a few failed transactions.”

Do you agree with Financial institution of America that Solano will take market share from Ethereum and change into the Visa of crypto? Tell us within the feedback part beneath.

Kevin Helms

A pupil of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source methods, community results and the intersection between economics and cryptography.