Bank of America crypto strategist Alkesh Shah has predicted Solana could become the “Visa of the digital asset ecosystem.”
After launching in 2020, Solana has since become the fifth largest cryptocurrency with a market capitalization of $47 billion. It can be said that the Solana network has a faster growth rate than its No. 1 competitor – Ethereum as it has been used to settle more than 50 billion transactions and mint more than 5.7 million NFTs.
However, according to critics, the price to pay for the speed of development is decentralization and reliability, but Shah believes that the benefits of the project far outweigh the disadvantages. :
“Its ability to deliver high throughput, low cost, and ease of use creates a blockchain that is optimized for many user use cases such as micropayments, DeFi, NFT, decentralized networks ( Web3) and play games.”
Besides, Solana is taking a share of Ethereum due to its low fees, ease of use and scalability while Ethereum is ranked in “high value transaction and supply chain use cases”, Business Insider cites Shah's view.
“Ethereum prioritizes decentralization and security, but at the cost of scalability, this has led to periods of network congestion and transaction fees that are sometimes greater than the value of the transaction being sent.”
Visa processes an average of 1.700 transactions per second (TPS), but the network can theoretically process at least 24.000 TPS. Ethereum currently processes around 12 TPS on the mainnet, while Solana boasts a theoretical limit of 65.000 TPS.
However, over the past few months, Solana has experienced many network performance issues. For example, most recently on January 12, Binance confirmed a delay in on-chain withdrawals. Or on January 1, many reports pointed to Solana network being attacked by DDoS, although the team denied this case.