Ethereum has been one of the most successful investments of 2021, with its price increasing by more than 437% since the start of the year. However, it is also one of the most expensive cryptocurrencies, costing slightly under $4,000.
Etherum will only get more expensive as it grows in value. Solana is another cryptocurrency to consider if searching for a more cheap investment with equal growth potential.
Solana: Ethereum Of The Year 2022
Solana is one of the crypto world’s rising stars, and while it has certain drawbacks, it might be the Ethereum of 2022.
With a market capitalization of $54 billion, Solana is the sixth most valuable cryptocurrency. (as a point of comparison, Ethereum has a market capitalization of more than $452 billion at the moment.) This puts it in a strong position since it has achieved enough traction to compete with the major companies in the crypto industry; but it still has a lot of potentials to develop.
It is also somewhat comparable to Ethereum. Both networks are smart contract platforms that can house projects like decentralized banking apps and non-fungible token (NFT) exchanges.
On the other hand, Solana has a significant edge over Ethereum in terms of speed. Solana can handle up to 65,000 transactions per second, compared to Ethereum’s current processing speed of roughly 15 transactions per second.
Because of this speed, many developers have rushed to Solana’s network; propelling it to the top of the blockchain ecosystem’s growth charts.
Is It Wise To Invest in Solana?
Despite recent instability, Solana remains one of the most popular cryptocurrencies, with its price increasing by more than 11,600% since the beginning of the year.
Because of Solana’s lightning-fast performance; it has a significant edge over its competitors, and as a consequence, more developers are migrating from Ethereum to Solana. Its security problems, on the other hand, are cause for alarm. As the network grows, it may become an even more attractive target for hackers; thus, Solana will have to work extra hard to avoid additional accidents.
It’s clear, Solana will be a long-term success. So far, the cryptocurrency has recovered from setbacks, suggesting that it may be a viable long-term investment.