Solana Rising: Key Metrics Hint At Serious Ethereum Competitor

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As an analyst with over two decades of experience in the crypto space, I have witnessed numerous projects rise and fall, but Solana’s progress has been nothing short of impressive. Having closely followed its journey since it was considered an undervalued player in 2023, I am genuinely excited about its current trajectory.

The Solana blockchain network is rapidly advancing and appears to be closing the gap with Ethereum. According to the latest research from hedge fund Syncracy Capital, Solana’s market share and value have significantly grown over a short timeframe, with some estimates suggesting that the network could be worth as much as 33% of Ethereum’s current value.

This advancement underscores Solana’s significant journey since being regarded as a relatively undervalued player in 2023. This transformation is attributed to its improved architecture, increased transaction speed, and user-friendly development environment. Since overcoming the challenges triggered by the downfall of FTX, Solana has experienced a surge in on-chain activity, user base expansion, and growth among developers.

Advancement Of App Earnings And Other Metrics

Without a doubt, one of the most significant developments this month has been Solana surpassing Ethereum in monthly app revenue. Considering the increase in finance and commerce-focused apps, this outcome isn’t all that unexpected.

Merchants find Solana particularly attractive due to its user-friendly mobile interface and low-cost transactions. Applications such as Pumpdotfun and others are demonstrating the vast capabilities of Solana’s network. Currently, these applications generate an annual revenue of over $348 million.

As an analyst, I’ve observed that as of October 26, approximately 42 million SOL have been locked, marking a two-year peak for Solana’s Total Value Locked (TVL). Meanwhile, Ethereum’s TVL has remained relatively stable, particularly within the Decentralized Finance (DeFi) and Decentralized Physical Infrastructure Networks (DePIN) sectors. Interestingly, these sectors have experienced a surge in platform usage, which suggests a growing trust in Solana’s ecosystem.

The Future Of Solana And The Expanding Ecosystem

The allure of Solana’s system is consistently growing and even challenges Ethereum in certain uncontested areas. This network isn’t solely geared towards retail merchants, but it’s also gaining ground with numerous innovative DePIN protocols that strive to motivate users to support real-world infrastructure.

The upcoming Firedancer update on Solana’s platform is expected to enhance its ability to handle multiple transactions simultaneously (improve scalability). As Syncracy Capital stated, this will help keep the difference in value between Solana and Ethereum minimal, positioning Solana as a strong contender.


SOL Price Forecast

By December 14th, 2024, it’s expected that the value of Solana will increase by 12% to reach approximately $242. Given the current ‘Extreme Greed’ level on the Fear & Greed Index and the ongoing positive consumer sentiment, it seems wise to invest in Solana at this moment. Additionally, considering the network’s efficiency and the recent growth of 30%, there’s a good chance that the price of Solana will continue to rise further.

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2024-11-14 18:40