Summer Inside Crypto Winter: Solana Steals The Lead From Ethereum

Share This Post

Solana has been gradually creeping up behind Ethereum even before the crypto winter began. The network had grown in popularity among non-fungible token (NFT) and decentralized finance (DeFi) users who had been fleeing Ethereum due to the high cost of transacting on the network. Nevertheless, Ethereum had managed to maintain its lead ahead of Solana. That is until now when the latter has barreled ahead.

Solana Transaction Volume Grows

One major area in which Ethereum has consistently dominated has been the volume of transactions being carried out on the network. Other DeFi and NFT networks have had to battle for the second position but Solana has brought the fight to the fore as the crypto winter rages on. The network has seen transaction volumes soar higher than that recorded on the Ethereum blockchain, making it the smart contract network with the most transactions.

Related Reading | Head To Head: Bitcoin Miner Revenues Surpass Ethereum But There’s More

This comes even as transaction fees on the Ethereum network have dropped to two-year lows. Despite this, the cost of transactions on Solana remains incredibly low compared to Ethereum, making it enticing for users. It also means that Solana is better for carry out small transactions given that users do not have to worry about paying more in gas fees than the amount that they are actually moving across the blockchain. 

Solana (SOL) price chart from TradingView.com

SOL declines to $33 | Source: SOLUSD on TradingView.com

Solana transaction figures came out to about 630,000 transactions for the last week. While Ethereum’s had come out lesser than 500,000, meaning that Solana transactions had surpassed that of Ethereum by more than 30% for the last 7-day period.

Winning The NFT Game

The transaction volume is not the only way that Solana is giving Ethereum a run for its money. As the NFT space continues to grow, Solana has been capturing a larger market share. This has been made possible with the NFT marketplace, Magic Eden, which has garnered popularity due to a number of successful SOL launches such as DeGods and Okay Bears collections.

Related Reading | NFT Volume Down 93% Since January, Is This The Beginning Of The End?

This has drawn more project founders to the network. Its community is growing especially given the lower gas fees required for minting on Solana. Even with the bear market and decline in NFT volume, SOL NFT transactions come out ahead of Ethereum for the previous month.

The performance price-wise of the two digital assets has not been encouraging though. In the last 7 days, SOL has lost 11% of its value while ETH has declined 7.40% in the same time period. There has been some recovery in the last 24 hours but at 2.98% and 5.15% respectively, both SOL and ETH still have a long way to go before they reach their previous all-time highs.

Featured image from Cryptoradar, chart from TradingView.com

Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Goatseus Maximus (GOAT) Enters Crypto’s Top-100: Time To Buy Or Sell?

Goatseus Maximus (GOAT) has surged into the top 100 cryptocurrencies by market capitalization, currently holding the #81 position The memecoin has experienced a remarkable 27% increase in the last 24

US prosecutors recommend leniency for former FTX executive Nishad Singh following ‘substantial assistance’

US prosecutors have requested that the court favorably consider former FTX executive Nishad Singh’s “substantial assistance” during their investigation into the failed crypto

Pennsylvania House Passes ‘Bitcoin Rights’ Bill With Bipartisan Support

The Pennsylvania House of Representatives has made a significant move in the cryptocurrency regulation landscape in the US by passing the ‘Bitcoin Rights’ bill with “overwhelming”

The Slow Death of Private Blockchain Tech—R3 Reportedly Explores Sale Despite Big Bank Support

According to a recent report, R3, the private blockchain initiative backed by several major companies—including Intel, Bank of America, and Wells Fargo—has been looking into various strategic

Tether proposes boron-backed tokens to revolutionize Turkey’s commodity market

Stablecoin issuer Tether has proposed a new initiative to Turkey: digital tokens backed by boron, a mineral in which the country holds over 70% of the global reserves, Bloomberg News reported on Oct

Former US Federal Agent Freed From Nigerian Prison After 8 Months

Tigran Gambaryan, a US citizen and former federal agent detained in Nigeria for eight months, has been released The charges against him, brought by the Economic and Financial Crimes Commission, were