Smart contracts are one of the leading factors in the growth of cryptocurrencies. Ethereum remains dominantdue to strong decentralization, but inferiormore recent projects in terms of commission rates and transaction processing speed. Thus, the throughput of Ethereum does not exceed 15 transactions per second, during the same time Solana can process 50,000 operations.
Image Source:cointelegraph.com
Smart contracts are actively used in the sectordecentralized finance (DeFi). At the beginning of the year, Ethereum accounted for 97.7% of blocked funds, now it has decreased to 66.7%. Solana ranks third with $ 13 billion in blocked funds and a 5.2% stake. These heights were achieved in a short period of time, since the network (mainnet) was launched only in March last year.
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Later, Solana joined the battle for NFT.(non-fungible tokens) used in the field of digital art. The debut took place three months ago, when a collection of 10 thousand monkeys was sold in 8 minutes. The sale confirmed the high speed of the network with extremely low fees (less than 1 cent). Now 193 NFT projects are supported by Solana, and the turnover of NFT images using this blockchain has exceeded $ 900 million.
Solana's success caused the price to rise a hundredfold and broughtthe network ranked fifth in the overall capitalization rating with a volume of $ 64 billion. Due to high institutional demand, the cryptocurrency became the third after Bitcoin and Ethereum, which got into the Bloomberg terminal for the ability to track quotes.
Image Source: Cryptocurrency ExchangeStormGain
Solana is gradually catching up with Ethereum in quantitynodes: 982 against 3346, respectively. The rise of decentralization, coupled with low fees and high transaction processing speeds, is increasingly driving startups to choose Solana as their underlying blockchain.
Do you think Solana has a chance to oust Ethereum in the overall ranking? Let us know in the comments!
Analytical group StormGain
(platform for trading, exchanging and storing cryptocurrency)
