Will solana take over ethereum by end of 2024 ?

by

As a researcher with extensive experience in the crypto market, I have closely followed the recent performance of Solana and Ethereum amidst the volatile market conditions following Bitcoin halving. The stark contrast between their annual price increases of 480.53% for Solana versus a decrease of 66.68% for Ethereum is noteworthy.

In the aftermath of Bitcoin‘s halving and the subsequent crypto market downturn, Solana and Ethereum have displayed contrasting trends. Solana recorded a remarkable annual growth rate of 480.53%, while Ethereum experienced a decline of 66.68%. The previous week saw a dip in Solana’s price by 12.05%, compared to Ethereum’s minor decrease of only 1.06%. This article aims to assess their recent market performance, explore potential trajectories within the current crypto landscape, and examine whether Solana has the edge to overtake Ethereum.

Solana vs Ethereum:  Current Price Market Performance

Will solana take over ethereum by end of 2024 ?

 

In the ongoing struggle between Solana and Ethereum, the financial charts depict two formidable opponents navigating the volatile cryptocurrency landscape. The price of Solana’s native token SOL stands at $135.08, representing a 4.50% decline in the past day. However, examining the bigger picture reveals a more intricate narrative. Over the past week, SOL has experienced a steeper 12.05% decrease, and a substantial 27.45% drop is noted over the last month.

Despite encountering some interim hurdles, the token has experienced a striking gain of over four hundred and eighty percent (480.53%) within the past twelve months. This significant surge underscores its resilience and enduring appeal to investors.

Ethereum and its signature token ETH currently have a value of around $3,164.16. However, there’s been a small dip of 3.84% in the last 24 hours. Contrarily, Ethereum’s long-term trajectory appears more stable, with only a 1.06% decrease over the past week and a larger decline of 10.75% in the previous month.

Notably, Ethereum has experienced a substantial 66.68% drop in value over the past year, reflecting the challenges facing the entire cryptocurrency sector. Meanwhile, Solana holds a market capitalization of $6.4 billion, ranking it fifth among cryptocurrencies based on CoinMarketCap’s data. Conversely, Ethereum boasts a market cap of $386.2 billion, securing its position as the second largest cryptocurrency by market value.

Despite their varying market cap sizes, both Solana and Ethereum exhibit robust trading activity. Specifically, Solana records a 24-hour trading volume of $1.98 billion, while Ethereum reports an impressive $13.5 billion in daily trading volume.

Examining price fluctuations, Solana saw a daily range of $133.96 to $143.78, compared to Ethereum’s trading band of $3,152.95 to $3,351.18. Both cryptocurrencies hit their all-time highs: Solana reached $260.06 two years ago, representing a 48.24% drop, while Ethereum peaked at $4,891.70, currently undergoing a 35.54% reduction.

What is Ethereum?

As a crypto investor, I’d describe Ethereum as the second-largest digital currency by market value, running on an open-source blockchain platform. It was founded by Vitalik Buterin back in 2013 and comes with its native digital token named Ether (ETH). What sets Ethereum apart is its capability to enable Decentralized Smart Contracts – self-executing agreements between parties without the need for intermediaries. Ethereum’s development was kickstarted through a public crowd sale in 2014, culminating in the official launch of the blockchain network in 2015.

Ethereum strives to serve as the universal center for decentralized applications (Dapps), empowering developers to build and operate software free from censorship or interruption. The idea of “smart contracts” was first introduced by Ethereum, with its co-founder Gavin Wood envisioning it as a single, global computer. Recent enhancements such as the London Hard Fork and the Eip-1559 Upgrade have brought about significant improvements in scalability and cost savings for transactions on the network.

What Is Solana?

The Solana initiative, started in 2017 and officially unveiled by the Solana Foundation in March 2020, is an open-source project that employs blockchain technology to create affordable Decentralized Finance (DeFi) solutions with a strong emphasis on speed. The platform’s protocol facilitates the development of decentralized applications (DApps) via smart contract deployment on its blockchain. Solana aspires to boost scalability by implementing a combination of Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms.

On March 2, 2022, Solana’s cryptocurrency was valued at $104.69. However, it reached an all-time high (ATH) of $260.06 on November 6, 2021. The efficient model of Solana facilitates quick payment verifications at minimal costs, making it a distinct selling point in the crypto market. Moreover, its innovative hybrid consensus mechanism ensures inclusivity for all traders, which aligns with the Foundation’s objective to expand access to decentralized finance.

Solana vs Ethereum: Key Features

Solana’s distinct consensus mechanism, which combines Proof-of-History (PoH) and Proof-of-Stake validation, enables it to handle a greater number of transactions per second compared to Ethereum. Each node on the platform is given its own clock and decision-making power, and Solana employs the Byzantine Fault Tolerance (BFT) algorithm for system protection against disruptions, ensuring optimal functionality. Simultaneous execution of multiple smart contracts enhances the platform’s efficiency and versatility within its ecosystem.

Instead of “On the other hand,” you could say “However, Ethereum stands out by providing smart contracts as self-executing codes within its blockchain. These contracts form the foundation for creating decentralized apps. Additionally, Ethereum’s native cryptocurrency facilitates transactions and incentivizes miners. With a Turing-complete virtual machine, Ethereum brings smart contracts to life for various applications and fosters the development of Decentralized Autonomous Organizations (DAOs), governed by code and consensus.”

Solana vs Ethereum: Latest News

An Ethereum ETF may become a reality soon, given the current lack of attention on Bitcoin ETFs. A prospective launch is predicted around May, although no definitive plan has been announced by the SEC.

As an Ethereum investor, I’m thrilled to announce that the long-awaited Ethereum Denas Upgrade was successfully implemented on the mainnet on March 13, 2024. After undergoing rigorous testing on all Ethereum testnets, this upgrade marks a significant milestone in the Ethereum network’s journey towards Ethereum 2.0.

As a market analyst, I can tell you that Solana stood out among other projects in the crypto industry and was awarded the “Crypto of the Year” accolade by CoinMarketCap for its impressive growth and resilience. This recognition highlights the significance of Solana’s SOL token within the dynamic crypto landscape.

An update has been rolled out by developer workshop Anza, which focuses on Solana, to address the occasional network congestion problems. The team anticipates a full recovery for the Solana ecosystem following this improvement.

Conclusion: Will Solana Overtake Ethereum?

In the realm of cryptocurrencies, Solana and Ethereum hold considerable weight. Ethereum, being the second-largest digital currency, persists in its growth with improvements such as the Ethereum London Upgrade. On the other hand, Solana has emerged as a formidable contender, having been named Crypto of the Year. However, it’s unclear if Solana will outpace Ethereum by 2024. Solana boasts impressive scalability and potential, but Ethereum’s established infrastructure and continuous enhancements indicate it will likely remain a frontrunner. The rivalry between Solana and Ethereum is anticipated to persist as new technologies, market conditions, and regulations unfold.

Read More

2024-04-29 19:08