When Solana (SOL) was introduced, the Ethereum (ETH) community was thrown into a brief chaos. The reason behind the turmoil was the entry of Solana, which combines the Proof-of-Stake (PoS) mechanism with Proof-of-History (PoH), and its ability to fulfill the functions that ETH users hoped Ethereum would perform.
A Comparison Between Solana and Ethereum
While the popular altcoin Solana stands out with its speed and low costs, the project struggled to maintain stability. In fact, the number of interruptions in Solana between 2021 and 2022 was a cause of concern for the crypto community.
However, 2023 proved to be one of Solana’s best years. As a result, discussions about disabling Ethereum resurfaced. One of the reasons for the resurgence of the debate was Solana’s DEX volume.
DEX volume refers to the total amount of cryptocurrencies traded on a DEX within a specific period. According to on-chain analyst Patrick Scott, Solana’s DEX volume is rapidly increasing. Scott also mentioned the Total Value Locked (TVL), which measures the value of assets locked or staked in a protocol. The higher the TVL, the more reliable the project is perceived to be, and vice versa. Scott also noted that Solana has the potential to attract more liquidity because of this.
Expert Opinion on Solana
On the other hand, another analyst criticizing Solana’s growth is Maxi Ryan Sean Adams. Adams pointed out that despite Solana’s breakthrough, the TVL of all other Ethereum L2s is higher. Examples of Ethereum L2s include Optimism (OP), zkSync, and Arbitrum (ARB), which are scalability solutions developed for the project, offering lower transaction fees and faster transactions.
However, Mert Mumtaz, the CEO of Helius, rejected Adam’s opinion. Helius is a leading Remote Procedure Call (RPC) for Solana. RPC is a type of computer server that allows users to read data from the blockchain and send transactions to different networks. Mumtaz told Adams that TVL is a “noisy” measure. He also emphasized that SOL has a much higher Transactions Per Second (TPS) compared to Ethereum.
