Solana (SOL) vs. Ethereum: An analyst pits ETH against one of its biggest competitors – Essonne Info

A popular crypto analyst examines how an emerging blockchain designed for scalability compares to the leading smart contract platform.

In a new video, the anonymous host of InvestAnswers provides his 444,000 YouTube subscribers with a detailed analysis comparing Ethereum (ETH) to rival Solana (SOL).

The moderator first examines technical parameters such as transactions per second (TPS) and the number of decentralized applications (DApps) built on each project’s respective blockchain.

“Solana wins the TPS. Fees are on par, although Solana is still cheaper. Technology, Solana is in our opinion better, even if it has bugs. [and] it is still in beta.

Ecosystem, Ethereum has the advantage. It has been around longer and has a lot more.

Daily active users and extent of DApps, Solana has a slight advantage. Therefore, Solana is the winner. »

The analyst goes on to look at overall market caps, noting that Solana’s significantly smaller size compared to Ethereum’s valuation plus the Polygon (MATIC) blockchain scaling solution suggests that SOL is significantly undervalued against ETH.

“That’s the million dollar question. If you look at stock hunting…I found things like Tesla [and] Google before they had big hits and that’s the key here. You gotta get into stuff early, before they have big hits.

If you’re looking at the relative value of this asset compared to others, let’s just look at market caps. If you combine the market capitalization of Ethereum and MATIC, it is more than 17 times that of Solana. Does it do 17 times more? No. This is my thesis. »

The InvestAnswers host then digs into what makes up each project’s ecosystem, starting with Ethereum which dates back to 2015.

“Ethereum has a large ecosystem. I estimate it is more than three times larger than Solana’s ecosystem. This is 3,000 DApps compared to around a thousand DApps, but since Ethereum was the first successful smart contract platform, it had a huge lead, almost five years, over all other protocols in the contract space. smart, layer 1 space…

The long-term strategy of Ethereum is very favorable since this technology is not only disruptive, but also based on its platform with incredible growth potential and has the largest development community of all cryptos. »

The analyst notes that Solana, which was founded in 2017 and created its first block in 2020, remains at an early stage despite meteoric growth as a top 10 cryptocurrency. He expects the project continues to mature and gain new market share against Ethereum.

“Solana, however, is catching up in this aspect. Some [of it] still very nascent stadium, boasts around $1 billion in TVL [total value locked]. I think it’s $1.4 billion or something right now, and that’s small compared to the $35 billion on Ethereum. »

As of this writing, Ethereum is up 7.74% on the day and trading at $1,530. Solana is up nearly 7% and trading at $31.96.

We wish to give thanks to the writer of this article for this outstanding content

Solana (SOL) vs. Ethereum: An analyst pits ETH against one of its biggest competitors – Essonne Info

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