Solana
Solana Vs Ethereum: Will Solana take over Ethereum by the end of 2024?
In the middle of crypto market crash following Bitcoin halved, Solana and Ethereum show different levels of performance. Solana’s 480.53% annual increase contrasts with Ethereum’s 66.68% decrease. Over the past week, Solana saw a decline of 12.05%, while Ethereum saw a more modest decline of 1.06%. This article will analyze their most recent market performance, assess their potential trajectories in the current crypto environment, and examine whether Solana is able to outperform Ethereum.
Solana vs Ethereum: Current Market Performance at Prices
In the continuing battle between Solana and Ethereum, market performance illustrates two powerful entities maneuvering in the unpredictable world of cryptocurrency. Solana’s native token SOL is currently at $135.08, showing a 4.50% drop in value over the past 24 hours. However, a broader perspective reveals a more detailed story, with SOL suffering a 12.05% decline over the week and a significant 27.45% decline over the month.
Even with some temporary hurdles, the token saw a remarkable 480.53% increase over the past year, demonstrating its ability to bounce back and remain popular with investors.
In comparison, Ethereum, along with its popular token ETH, has a higher value of $3,164.16. However, like its opposite, it faces recent changes, showing a decline of 3.84% during the day. Nonetheless, Ethereum’s overall trend indicates a more stable trajectory, with only a 1.06% decline over the week and a 10.75% decline over the month.
Importantly, ETH has shown a 66.68% decline in value over the past year, highlighting the challenges faced in the cryptocurrency market as a whole.
Digging deeper, Solana’s market capitalization of $6.4 billion places it at the 5th position among cryptocurrencies, according to CoinMarketCap. On another side, Ethereum has a market capitalization of $386.2 billion, making it the second largest cryptocurrency by market capitalization.
Even though their market capitalizations are different, both platforms show strong trading activity, with Solana recording $1.98 billion in 24-hour volume and Ethereum bringing in $13.5 billion.
Analyzing the price movements, Solana’s recent moves had it moving between $133.96 and $143.78 in a day, while Ethereum was trading in a range of $3,152.95 to 3,351 $.18. Both tokens reflect their past high values, with Solana reaching $260.06 two years ago, a decline of 48.24%, and Ethereum peaking at $4,891.70, currently experiencing a decline of 35%, 54%.
What is Ethereum?
Ethereum is the second largest cryptocurrency by market capitalization, operating as an open-source blockchain system with its own digital currency called Ether (ETH). Founded by Vitalik Buterin in 2013, Ethereum enabled the execution of decentralized smart contracts. The project was funded through a public sale in 2014, leading to the official launch of the blockchain in 2015.
Ethereum aims to become the global hub for decentralized applications (Dapps), allowing programmers to create and run software without censorship or downtime. The concept of “smart contracts” was pioneered by Ethereum, with its co-founder Gavin Wood considering it “a computer for the entire planet”. Recent upgrades such as the London Hard Fork and the Dencun Upgrade have brought scalability efficiency and reduced transaction costs to the platform.
What is Solana?
The Solana Project, launched in 2017 and officially launched in March 2020 by the Solana Foundation, is an open source platform leveraging blockchain technology for profitable DeFi solutions focused on speed. Its protocol supports DApp development through the deployment of smart contracts on its blockchain, aiming to improve scalability with a combination of PoH and PoS consensus mechanisms.
With the SOL crypto priced at $104.69 on March 2, 2022 and reaching an ATH of $260.06 on November 6, 2021, Solana’s efficient model enables rapid verification of low-cost payments, thus providing a USP in the crypto industry. The innovative hybrid consensus ensures accessibility to all merchants, which aligns with the Foundation’s goal of expanding access to decentralized finance.
Solana vs Ethereum: Key Features
Solana’s unique Proof of History (PoH) consensus mechanism, combined with Proof of Stake validation, allows it to process many more transactions per second than Ethereum. The platform provides each node with its clock and decision-making capacity. The Byzantine Fault Tolerance (BFT) algorithm protects the system from disturbances, ensuring overall functionality. Solana supports multiple smart contracts running simultaneously, improving the platform’s efficiency and versatility within its ecosystem.
On the other hand, Ethereum offers smart contracts encoded in code for self-execution, enabling the creation of decentralized applications on its blockchain. Its native crypto is used for transactions and to reward miners. With a Turing complete virtual machine, Ethereum executes smart contracts for various applications and enables the formation of DAOs, governed by code and consensus.
Solana vs. Ethereum: Latest News
A potential spot Ethereum ETF could be on the horizon now that spot Bitcoin ETFs are no longer the focus, expected in May. However, the timing of this operation has not yet been determined, as the SEC has remained silent on the matter.
Additionally, the Ethereum Dencun Upgrade was successfully launched on mainnet on March 13, 2024, following its deployment to all Ethereum testnets. This is a significant advancement in the Ethereum network and a crucial step towards Ethereum 2.0.
On the other hand, Solana received the Crypto of the Year Awards for its SOL token from CoinMarketCap, recognizing its growth and resilience. This milestone highlights its success among other notable projects in the industry.
Additionally, Solana-focused Anza devshop has released an update to fix the intermittent issue. congestion issues and expects a healthy recovery of the Solana ecosystem.
Conclusion: Will Solana Overtake Ethereum?
Both Solana and Ethereum are major players in the cryptocurrency world. Ethereum, the second largest cryptocurrency, continues to advance with upgrades such as the Dencun upgrade. Meanwhile, Solana quickly gained recognition, even winning the Crypto of the Year award. The question remains whether Solana will overtake Ethereum by 2024. Solana’s scalability and capabilities make it a strong competitor, but Ethereum’s established environment and continued updates suggest it will maintain its dominance. Competition between Solana and Ethereum is expected to continue as new technologies, market factors, and regulations evolve.