- It is important to note that Solana is very popular among NFT creators as its transactions appear relatively cheaper in the market.
- According to data, Ethereum had several Defi applications running on its network at the beginning of the bull market
Many have identified Solana (SOL)as an Ethereum killer. For some time now, it has been the second-biggest network in the market. In fact, data explains that Solana is not far behind Ethereum as it has processed just as many Non-Fungible Token (NFT) transactions as Ethereum to date. It is important to note that Solana is very popular among NFT creators as its transactions appear relatively cheaper in the market.
Ethereum on the other hand has been criticized on the ground of high transaction fees with users paying as high as $150 per operation. This has been a complete turn-off to users who want to maximize profit with minimum input.
The same can be said of the Decentralized Finance (Defi) industry.
According to data, Ethereum had several Defi applications running on its network at the beginning of the bull market. In November, when the market had reached its peak, alternative networks like Solana or Layer 2s dominated the volume of decentralized solutions. The complete shift to Solana was due to the high cost of transactions incurred on the Ethereum network.
Was news to me that @solana has executed just as many #NFT transactions as @ethereum to date (h/t @ournetwork__) pic.twitter.com/LORXavqc4g
— Chris Burniske (@cburniske) December 10, 2022
In addition to the fees, Solana can handle more transactions per second. Regardless, Ethereum is far superior in terms of value.
Solana is heavily undervalued
SOL has a market cap of $4 billion and currently trading at $13, which is about 94 percent down from its all-time high of $259. This is just a fraction of Ethereum’s $153 billion market cap. Experts, however, believe that SOL has an easier path to massive growth due to its smaller market cap.
With the market taking a nosedive, both networks have recorded an outflow of funds led by the Defi and NFT industries.
The bear market has affected Solana so much that it has lost a lot of its value. In fact, it needs beyond the support of its retail investors to recover, unlike Ethereum which is holding through the bear market with updates and developments on its network.
Solana is expected to bounce back in any future market bull run as its price is said to be a false reflection of its underlying technology. The anonymous host of InvestAnswers in one of his recent YouTube videos stated that Solana is undervalued.
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When I compare Solana to Ethereum, it should be a lot higher, technically, from a relative value basis. And again, we just look at data here. We look at quant, we look at metrics, we measure everything. That’s how we make decisions. Nothing about sentiment or how people feel or what type of religion or tribe they belong to. We just look at data.
