“Is Solana better than Ethereum?” Pop this question into your Google search bar to see how hot the topic is. Standing tall as the 5th largest crypto by market cap as of May 31, 2024, Solana has quickly become the talk of the town—or rather, the talk of the crypto world. Below, we’ll walk through the Solana price since inception, the asset’s growing reputation as an ETH killer, and speculations about its future as the industry grows.
Solana’s Swift Rise to Prominence
Since its inception in March 2020, SOL’s journey has been nothing short of a roller coaster. Solana’s debut was modest and priced at a humble $0.9511 at launch. It wasn’t long before it caught the crypto wave, though. According to Statista, SOL more than tripled during the summer of 2021. By the tail end of the year, amidst a booming interest in all things DeFi and NFTs, Solana’s price soared, peaking at around $250.
Granted, 2021 was the year of crypto fireworks. From the NFT frenzy to the rise of crypto millionaires, the industry saw jaw-dropping growth. But SOL’s meteoric rise wasn’t just about riding the wave; Solana’s lightning-fast transaction speeds and bargain-basement costs had everyone from developers to investors singing its praises.
Solana Labs boasted that its blockchain could handle over 50,000 transactions per second (TPS), crowning it the fastest blockchain ever at the time. Meanwhile, ETH, the then-speedy contender, could only juggle 15 transactions per second—making it a tortoise at 3000 times slower.
The journey, however, hasn’t been all smooth sailing. Like other digital currency, Solana has hit some technical bumps, including network blackouts that sparked worries about its stability and scalability—vital for any blockchain aspiring to go mainstream. The crypto winter of 2022 was brutal, sending SOL’s value plummeting. Forbes reported the asset nosedived below $10, igniting chatter about its long-term viability.
Reputation as an Ethereum Killer
Solana’s talent for bouncing back and thriving is downright dazzling. As of May 31, Solana’s price is lounging above the $166 mark, with the investor buzz reaching a fever pitch.
Labeled the “Ethereum killer,” Solana has made quite a splash by side-stepping Ethereum’s sky-high gas fees and turtle-speed transactions. But this isn’t just a duel of speed and cost; it’s about the grand tapestry of decentralized apps and smart contracts. With its snazzy proof-of-history (PoH) consensus, Solana isn’t just playing catch-up to Ethereum; it’s gunning for the top spot in the blockchain arena.
“To be honest, before the Solana project, we often heard about so-called ‘Ethereum killers.’ Cardano, and Polkadot: they all tried to solve challenges ETH faced. ETH is still the absolute champion in the DeFi world,” Maria Stankevich, Chief Business Development Officer at EXMO UK, remarked. Stankevich believes Solana’s speed and new proof-of-history protocol make it a top contender for the “Ultimate Ethereum Killer.”
A recent article on Tech Crunch supports this idea. “The blockchain behind the token is well known for its NFT marketplace, which is the second largest by all-time sales volume at $5.2 billion, as well as its decentralized finance (DeFi) ecosystem and, more recently, developers’ ability to churn up meme coins on its chain faster than I can write this article,” the author remarks. “So it’s not surprising that the growth and traction on its blockchain is also being transpired through to its token.”
What’s Next for Solana?
The buzz around Solana is far from over. Following the recent ETH ETF approval by the SEC on May 23, 2024, many SOL enthusiasts believe the asset is next in line. Experts predict that Solana’s profile will grow if that happens, further boosting its value. If Solana can maintain its momentum and continue to innovate, only time will tell how high it can climb.
