Competition among Layer 1 smart contract platforms has intensified over the past two months. While traders and developers continue to embrace Ethereum, network alternatives that offer faster transaction times and lower fees have also popped up.
“Ethereum killers,” a term widely used within the crypto-community, recently gained notoriety thanks to this story.
Sam Trabucco, Co-CEO of Alameda Research, on the latest edition of the Unchained podcast, shared his perspective on the same, especially in light of Solana’s growth. In addition, he also mentioned the reason for the rise in prices of SOL.
SOL in, ETH out?
SOL’s rally over the past few months has been beyond impressive. Despite minor setbacks, altcoin was able to follow its macro uptrend. The top 5 number was trading above the $ 235 mark, having risen 4% at time of publication.
Consider this – The alt went from being valued at around $3 to the aforementioned price, in a matter of months. But, what exactly drove this insane rally?
According to the executive, to begin with, its transaction speed. Solana can perform 50,000 transactions in a single second. He can quickly add multiple properties to his existing network. Whether it’s building apps or mining SOL tokens, the network claims to do everything in ‘microseconds’.
Meanwhile, the network also claims to offer an incredibly low transaction fee of just $0.00025 per transaction. the exec added,
“There are a lot of exciting projects that are being built using Solana… (this) has sparked investor enthusiasm as well. These projects are composable with each other and represent a future of finance, to some extent, are like legitimately happening.”
This network also has various perpetual loan platforms, the DEX. Solana has helped bring more than 350 projects to life. Most of these projects focus on the hottest niches in the market, including DeFi, blockchain games, and NFTs.
For example – Serum, a non-custodial, decentralized exchange (DEX) and Solarians (a collection of 10,000 fully randomized, generative NFTs robots), among others.
Is SOL-ETH coexistence possible?
Well yes!
According to Trabucco, “As for all the talking I’m doing about how much is being built on Solana, much more already is built on Ethereum. It’s impossible to deny that.” He further opined,
“Ethereum is unlikely to disappear in a few years. It already has so many uses that many people use it for applications. I do think that it’s quite likely that both, Ethereum and Solana will exist.”
On top of that, Solana co-founder Raj Gokal also reiterated a similar sentiment recently. He denied the possibility of “killing ETH.” Despite what people thought about the L1 competition, he disagreed. Simply put, he believes both BTC and ETH are crucial elements of the crypto-ecosystem.
That being said, SOL has had an incredible start to the year. The crypto valuation has managed to reach stratospheric levels, rising over 60% in the last month alone. In fact, according to a recent analysis, it is unlikely Solana would end up becoming a victim of a potential “crypto-winter.”
