It is no secret that crypto is have difficulties, with the total market’s value going down 13% to $1.9 trillion this year. That said, cryptocurrency has a history of bouncing back over time. And some of the assets will likely be better performers than others.
Let’s explore why Ethereum and Solana fit the bill and might make top picks for the long-haul.
Often called an “Ethereum killer” due to its super fast speeds, Solana is the ninth-biggest crypto with a market capitalization of $31 billion. The network is able to maintain its long-term edge with growth into financial services and fintech.
According to data released from coinbase.com, Solana is able to handle around 50,000 transactions each second compared to ETH’s 15. And this makes it an ideal decentralized application (dApp) development.
So far, Solana hosts about 500 dApps, which is well under rival Ethereum’s 3,000. But Solana seems poised to gain ground on ETH because of its technical prowess. And it is not limiting itself to only dApps.
In Feb., the platform’s creator Solana Labs announced its new payments system Solana Pay, which is designed to help merchants accept crypto payments directly from their customers. Solana’s fintech growth highlights its potential for having real-world utility, which is great news for any long-term investors.
Never underestimate a strong brands power. ETH’s staying power comes from the first-mover advantage as a platform for the dApp development, providing this functionality since 2015. And planned upgrades could help the platform continue to be relevant in the highly competitive blockchain sector.
It is not yet clear when Ethereum’s upgrades go into effect. But the platform has a history of implementing their improvements, so changes such as this are not really unprecedented.
In the meantime, ETH has continued to attract most of dApp development, with around 3,000 of the roughly 4,000 total projects in play. And this means that its shortcomings aren’t scaring away users. ETH’s reputation as a well established and trustworthy blockchain network will be the key to its success in the long-term.
There is room for many similar blockchains
While Ethereum and Solana compete as a platform for dApp development, crypto isn’t a zero-sum game. History shows us that there is room for many other similar assets to benefit from this as the overall opportunity grows.
For instance, Ethereum improved upon Bitcoin but did not kill it. Likewise, Solana will not necessarily kill ETH, either — despite its technical advantages. Both assets seem poised for success in the long-term because of their active development teams and strong brands.