A popular crypto analyst is highlighting the reasons why he believes Solana (SOL) is still the top Ethereum (ETH) challenger.
The anonymous host of InvestAnswers tells his 436,000 YouTube subscribers that his “Day One Thesis” was that SOL was his Ethereum hedge as he considers Solana the only potential “ETH killer.”
He notes that SOL has less than 1/12th the market cap of ETH but “it’s doing a lot of stuff.”
The analyst also outlines Solana’s potential advantages over Ethereum.
“The strength of Solana, and the reason why I still like it, is that they have the most breadth of DApps [decentralized applications] of any chain out there. They have exponential adoption. Fast, inexpensive, scalable. Despite the outage…
It also has Rust, the most preferred developing language that’s driving the most development activity on any chain. 65,000 [transactions per second]. No need for layer-2s, and SOL DApps have more daily active users than Ethereum DApps, which is kind of staggering, because Ethereum has about 3,000 DApps and SOL has about 750.”
The analyst does note that Solana’s outages are a potential issue. Solana suffered a network outage in late April when the project’s mainnet beta cluster “ceased producing blocks as a result of stalled consensus,” according to Solana Labs.
The InvestAnswers host also notes that Solana has higher inflation than Ethereum.
He notes Ethereum’s advantages include its larger size, earlier launch date and higher adoption rate. He adds that Ethereum also has the most validators, and it is more decentralized and deals with less regulatory risk.
Solana’s native asset, SOL, is trading at $65.51 at time of writing. The seventh-ranked crypto asset by market cap is down more than 14% in the past 24 hours.
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