Solana seems destined to be one of the leading cryptocurrencies of next year and probably of the near future. In a report published two days ago, Bank of America analysts went beyond even the most optimistic expectations: because of its many applications and efficiency, the new blockchain could become a sort of credit card circuit, on a par with Visa.
Solana as Visa
“Solana could become the new Visa of the digital asset ecosystem”,
This was written by Alkesh Shah, a strategist for the bank’s digital asset market in his report published on Tuesday.
To justify this very flattering prediction, the bank’s analyst cites in his report the more than 400 decentralized applications on Solana’s network, which host everything from peer-to-peer to NFT marketplaces.
Solana, which was born in 2020 and has become the fifth most capitalized cryptocurrency in little more than a year, could become the preferred blockchain for major digital transaction use cases, while Ethereum could remain for more complex use cases.
What’s more, Solana in recent months seems to have become the blockchain of choice for an increasing number of developers and startups, due to its higher transaction speed (50,000 per second compared to Ethereum’s 15 or so) and the resulting lower transaction costs.
“Its ability to provide high throughput, low cost and ease of use creates a blockchain optimized for consumer use cases like micropayments, DeFi, NFTs, decentralized networks (Web3) and gaming”.
According to the bank analyst, Ethereum‘s problems are still related to its lower scalability and sustainability compared to other competing blockchains such as Solana, even though it continues to be the most secure and stable blockchain.
“Ethereum prioritizes decentralization and security, but at the expense of scalability, which has led to periods of network congestion and transaction fees that are occasionally larger than the value of the transaction being sent”.
Avalanche, Solana’s rival
Solana, on the other hand, still faces problems due to its instability and lower transaction security than Ethereum, but also other blockchains such as Avalanche, which is specifically mentioned in the Bank of America report.
According to the investment bank’s digital asset expert, Avalanche is working hard on the security and stability of the blockchain. And it is no coincidence that Avalanche is one of the cryptocurrencies with the highest growth rates in 2021.