Solana has seen a meteoric rise in the past few months. While SOL has pumped up the price charts, the popularity of networks, acceptance, and ecosystem-oriented developments have also made the headlines.
This sudden surge in popularity was fueled by the network’s unprecedented scalability along with a lower transaction fee compared to Ethereum. The latter, for example, are often plagued by network congestion and rising gas charges.
However, Solana isn’t the only potential “Ethereum killer” that exists. Other Layer 1 solutions such as Binance Smart Chain (BSC) and Polkadot have given this comparatively new blockchain fierce competition.
And so began the Layer 1 Wars, with various solutions vying for the ultimate price of dethroning Ethereum. According to Solana co-founder Anatoly Yakovenko, this will depend less on the technology and more on the strength of the community.
During a recent podcast, the co-founder claimed that Solana was developed with a vision to get the most people on board the network. Building it as a Layer 2 solution would have compromised the ethos of decentralization, a compromise users typically make for lack of a better replacement, he added.
According to management, Solana is designed to change that.
“We’re coming in means no, that is [ __ ], you can achieve the same or a higher degree of decentralization at a lower cost for users with a much larger set, all participating and at the same time. “
He went on to say
“The optimistic argument for the single-chain world is that the fastest, cheapest, and most decentralized chain will likely have the greatest number of cities.”
In addition to a huge community, another aspect that the engineer considered when creating Solana was optimizing trading activities on the network. Yakovenko explained that while the transition from Ethereum to 2.0 turned its native token Ether into a deflationary asset, it is only a positive move for the price of the token and not necessarily for the users of the network. The latter would now have to pay higher and higher gas fees for every transaction.
This was one of the reasons the Solana user base has recently boomed as the network claims it can do 700,000 transactions per second. This high throughput capability is an attractiveness factor for high-frequency traders who can avoid network congestion and high fees when carrying out DeFi transactions.
While Solana’s initial rally has subsided, the token has appreciated 7.7% in value over the past week due to larger market developments.
But what about the future? Yakovenko gave an interesting twist to Solana’s future price prediction, stating:
“I predict that the state costs on Solana will be a hundred times cheaper than today.”
Solana has been making waves in the NFT space for months. And much of its own success can be attributed to the ongoing NFT mania. In fact, it was recently reported that Solana’s NFT total market cap exceeded $ 1 billion. In addition, its SOLSEA marketplace is proving to be a tough contender for Ethereum.
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