- Despite gaining over 800 percent over the past year, Ethereum is beginning to lose its domination position to alternative blockchains.
- Investors are now exploring other blockchains like Solana which has also proved to be a fast-developing network.
Gradually, Ethereum is losing to the likes of Cardano and Solana as investors seek alternatives for faster networks and cheap transaction fees. The Ethereum network users have been battling slow transaction processing, coupled with costly transaction fees. As traders go after Cardano and Solana instead, Ethereum is now beginning to fall behind.
Investors prefer Solana to Ethereum, here’s why
Over the past year, Ethereum has jumped more than 830 percent in value. The gains pulled have helped the crypto asset to become the second-highest by market capitalization. However, ETH also declined in the last few months, losing about 16 percent recently. At press time, the 2nd ranked crypto is down 2.32 percent to $3,333,39. In the last 24 hours, Ethereum has also shed over 13 percent in its trading volume.
On the other hand, Solana has increased nearly 4,800 percent in the last twelve months. In addition, the blockchain offers cheaper transaction costs and faster processing than the Ethereum network. The network also processes 50,000 transactions per second at $0.00025 per transaction. Investors opt-out of Ethereum as the network’s transaction speed has a limit of 13 transactions per second at a more costly fee compared to Solana.
With investors exploring other blockchains apart from Ethereum, the alternative blockchains now have a chance in the market share. Although there are lots of blockchains, Ethereum has been dominating the market. These alternative blockchains are often referred to as “Ethereum killers.” They include Solana, Cardano, Matic, and Polygon.
Solana’s achievements in the NFT space
At the same time, Solana is making positive marks in both the sectors of decentralized finance (DeFi) and non-fungible token (NFT). The platform is seeing its NFT ecosystem grow, increasing in the last few weeks. A while ago, Solana Monkey Business (SMB) sold an NFT for a record-breaking $2.1 million. It was the most expensive Solana-based NFT sold in history. The NFT, Solana Monkey #1355 was sold at an equivalent of 13027 SOL. Also, it is tagged as the rarest piece in the collection. The piece of art features a monkey in a skeleton, wearing an orange jacket and a bejeweled crown.
Before Solana sold its most expensive NFT, the platform sold its first Solana-based NFT for more than $1 million. The NFT in question was Degen Ape #7225, and blockchain advisory firm Moonrock Capital purchased it for 5,980 SOL. According to HowRare.is, Degen Ape #7225 is the 13th rarest in the collection. The NFT is a zombie version of an ape with scars, a gold tooth, a brain in its mouth and a halo over its head.
Eth gas fees are way too high lol rn (only gonna get worse), and that’s gonna stop a lot of people buying NFTs (unless you’re the wealthy), so ya boy is getting ahead of the game and buying NFTs on Sol instead.