Layer-1 solutions like Solana (SOL) to outperform Ethereum, here’s why

  • A crypto expert has predicted that Ethereum will likely be outperformed by layer-1 solutions like Matic, Solana, and Terra.
  • An FXStreet analyst has predicted that the Solana price will recover and rise to trade at $330.

Recently, Nikolaos Panigirtzoglou, who has become a JPMorgan’s crypto expert said Ethereum is no more unique as its key selling point – that Decentralized apps and Smart Contracts can be built on it by developers – can now be duplicated and replicated. 

It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there are going to be more in the future.

A number of crypto experts cannot agree more. Su Zhu, the CEO and CIO of Three Arrows Capital and Hasu in a recent Podcast on Uncommon core disclosed that Ethereum will likely be outperformed by layer-1 solutions like Matic, Solana, and Terra. This was after he noted that a large number of institutional investors and large wallet traders put more capital on these platforms. 

Investors have recently doubled their interest in scalability solutions. This is seen in the on-chain activities and the Total Value Locked on these networks. In the last two months, the active address of Matic and Solana has recorded impressive growth. This is well agreed by experts like Altcoin Sherpa, Pseudonymous crypto analyst. 

Altcoin Sherpa’s poll

According to a poll conducted by Altcoin Sherpa a few months ago, it was disclosed that most of the participants had no Bitcoin in their portfolio as their holdings were dominated by altcoins. He further stated that layer-1 solutions will continue to perform better than Ethereum. 

There appears to be confusion on what I’m saying: I’m not saying that ETH is going to dump; I actually think the ETHBTC chart looks pretty good. I’m saying that other L1s probably outperform ETH given the overall environment/evidence of 2021/current market trends.

Skale Labs CEO believes Ethereum blockchain will still dominate

Jack O’Holleran, CEO at Ethereum development company Skale Labs, however, believes that Ethereum is more likely to remain a dominant decentralized finance blockchain considering the upcoming changes that will make it even larger and faster. 

The vast majority of smart contract developers are building in the ethereum ecosystem. Despite major partnerships being announced on other chains, we still see the absolute majority of (developers) being pulled into the ethereum vortex.

Panigirtzoglou previously said that the price of Ethereum should be over 50 percent less than its current price. Understanding the value of the asset using hashrate and the number of unique addresses should give it a trading price far lesser than its current price. He believes that the current price is an exponential increase in usage and traffic that might not materialize. 

As it stands, Solana’s market cap is more than double that of Terra and Avalanche. Based on the price trend of Solana, an FXStreet analyst has predicted that the price will recover and rise to trade at $330. Terra’s Luna on the other hand is predicted to be in price discovery. 

Etheruem is at the time of press is just under the $4,000 position following a 3 percent price drop in the last 24 hours.

About Author

John's a cryptocurrency and blockchain writer and researcher with years of experience. He has a lot of interest in emerging startups, tokens, and the invisible forces of demand and supply. He holds a Bachelor's degree in Geography and Economics. My Email: (kojokumijohn@gmail.com)

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