Swiss crypto bank Sygnum emphasized in its monthly report that Solana (SOL) is the biggest rival for Ethereum (ETH) in the financial sector. SOL has gained a significant advantage by exploiting Ethereum’s weaknesses and is growing this advantage. This report details why Solana is considered a strong competitor to Ethereum.
Solana’s Rise in the Finance Industry
The Solana-Ethereum rivalry, which started two years ago, deepened further when Visa formed a partnership with Solana. When used in USD Coin transactions, SOL managed to stand out with its high speed and low transaction costs. As a result, SSOL continued to grow by establishing more financial partnerships.
The recent announcement by Franklin Templeton that it would launch an investment fund on Solana further accelerated this rise. These partnerships made Solana more visible in the financial world and gave it a significant competitive edge against Ethereum. As a result, Solana is now a serious long-term competitor in Sygnum’s eyes.
Comparisons Between Solana and Ethereum
The competition between Solana and Ethereum manifests itself in various areas. While Ethereum’s decentralized exchange (DEX) volume has decreased from $2 billion to $1.7 billion since August, Solana’s DEX volume has remained stable or even improved in places during the same period. This development demonstrates Solana’s resilience and strength.
In addition, as we reported as Kriptokoin.com, Solana (SOL)’s collaborations with large financial institutions bring it new investors. Partnerships with giants like Visa pose a significant threat to Ethereum’s market dominance. Therefore, these collaborations make Solana a more attractive investment vehicle. It is also challenging areas where Ethereum is dominant.
Solana Exploiting Ethereum’s Shortcomings
Solana creates an attractive platform for users and developers thanks to the high transaction volume and low transaction fees it offers. In particular, the high gas fees faced by Ethereum are driving users to Solana. This disadvantage of Ethereum is accelerating Solana’s growth.
Looking at the data, it is clearly seen how this difference is reflected in transaction volumes. Solana surpasses Ethereum with 1 billion monthly transactions, while Ethereum processes only 200 million transactions. Users choose Solana to avoid high gas fees. This causes Solana’s transaction volume to increase.
Future Potential
Solana has made great progress in just four years. However, Ethereum still maintains its superiority in some areas. Especially regarding decentralized applications (dApps), Ethereum hosts widely adopted and used projects. In order for Solana to truly compete with Ethereum, it needs to innovate more in this area.
Solana (SOL) has great growth potential. However, Ethereum will need to develop further in the areas where it dominates. Otherwise, Ethereum may be likely to hold the lead in the long run. However, Solana’s rapidly evolving technology and financial partnerships suggest that future competition could get even fiercer.
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