Solana’s Presence Won’t Deter Ethereum’s Continued Dominance
According to a recent report by Coinbase titled “2024 Crypto Market Outlook,” Solana has seen significant investment throughout 2023, making it the second most popular choice after Bitcoin. This surge in investment can be attributed to Solana’s ability to handle high transaction volumes and low fees, which are crucial for supporting high-performance applications.
Despite Solana’s growing popularity, Coinbase still considers Ethereum to be the top smart contracts platform in the cryptocurrency space. Ethereum processes around 1 million transactions per day and maintains a consistent daily transfer volume between $1 billion and $3 billion. Coinbase believes that Ethereum’s position as the leading platform for decentralized applications will remain unchallenged for the foreseeable future.
As of press time, Ethereum is trading at $2,280, showing a 91% year-to-date increase. On the other hand, Solana’s SOL is trading at $78.3, with an impressive 697% increase in 2023.
While Ethereum’s dominance is expected to continue, Coinbase acknowledges that Solana’s scalability and performance make it a viable alternative for certain use cases in 2024. Additionally, Coinbase predicts that other layer-1 networks like Aptos, Sui, Sei, and others will increase competition in the space by addressing scalability demands at the base layer.
Overall, Coinbase’s report suggests that although Solana has gained significant traction, Ethereum will remain the top smart contracts platform in 2024. However, Solana and other emerging networks may provide viable alternatives for specific use cases.
