The fall 2021 season has been marked by many exciting developments as a new cryptocurrency boom has taken shape. We’ve seen Bitcoin (CCC:BTC-USD) prices reach historic highs following the launch of the ProShares Bitcoin Strategy ETF (NYSE:BITO) and meme coin sensation Shiba Inu (CCC:SHIB-USD) surge past its predecessor Dogecoin (CCC:DOGE-USD) in prices, albeit briefly. Several of these surges were due to the “Dogefather” Elon Musk, but recently, another innovator in the space has made a statement that threatens to send prices up for one crypto at the potential expense of another. According to Sam Bankman-Fried, Solana (CCC:SOL-USD) represents an investment vehicle that tops the utility of its competitors. The SOL crypto is having a good day, but let’s discuss what this means for trading days ahead.
SOL Crypto and Ethereum: Competitive Cryptocurrencies
Despite a slightly turbulent week, SOL crypto prices are up today.
You may not know Bankman-Fried’s name, but you likely know this work. He is the Founder and CEO of crypto exchange CTX, an achievement that recently earned him a profile in Forbes as the “World’s Richest 29-Year-Old” and landed him a net worth of roughly $22.5 billion.
At the recent “Crypto Goes Mainstream” conference, Bankman-Fried discussed the benefits of the Solana network, specifically the utility that comes from its capacity for significant traffic, either transaction- or user-generated. The DeFi (decentralized finance) network operates as part of a peer-to-peer application. It’s been referred to as the Ethereum (CCC:ETH-USD) killer due to its superior transaction speed and lower fees. Bankman-Fried echoed this sentiment, taking it a step further. As he stated,
“Solana is one of the few currently existing public blockchains that has a really plausible roadmap to scale millions of transactions per second at you know, fractions of a penny per transaction, which is a scale that you need for this.”
He also noted that this an area that many blockchain networks have not concerned themselves with. He even went as far as calling out Ethereum as being guilty of this.
The Experts Have Spoken
Bankman-Fried isn’t the only expert to tout the superiority of the SOL crypto over ETH. Yesterday, InvestorPlace’s Mark Hake also made the case for Solana, laying out an in-depth analysis of why it was a better long-term investment vehicle than its competitors. Like Bankman-Fried, he touted the “lower fees and faster transactions” that enabled Solana to outperform Ethereum.
According to Hake, SOL crypto’s TVL (total value locked) could substantially increase throughout the coming year, leading to gains of 50% with an additional $114 billion added in market value. His predictions from a few days ago regarding Solana’s market capitalization have already come true.
The Bottom Line on the SOL Crypto
The two experts make a convincing case for staying within the Solana ecosystem. As the NFT (non-fungible token) and DeFi token boom continues, we are likely to see more and more users gravitate toward the public blockchain network, sending its internal crypto up even more.
Hake recently predicted that NFTs have the potential to launch Ethereum to $15,000 within the next three years. If this red-hot market can do that for Ethereum, imagine what it can do for a superior network in the shorter term.
As the coming year unfolds, SOL crypto is clearly one of the names to be watching closely.
On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.