Ethereum has long been recognized as a Mecca for non-fungible tokens (NFTs) enthusiasts and creators alike. It offers a robust ecosystem designed to cater to even the most distinctive tastes, offering simplicity and scalability, at least to a certain extent. Despite pioneering many groundbreaking projects, Ethereum’s limitations became increasingly apparent.
Numerous challenges around the second-largest cryptocurrency prompted a search for alternatives to address its shortcomings, embodied in higher transaction costs and lower throughput. Solana emerged as an efficient solution for creating NFTs, offering scalability, faster transaction speeds, and a burgeoning ecosystem.
In the lines that follow, we’ll present to you the top 3 reasons why Solana could overtake Ethereum in NFTs.
How to Acquire Solana?
If you’re interested in purchasing Solana, the good news is that this cryptocurrency is available on almost all major crypto exchanges. All you have to do is to find a reputable and trustless crypto platform, create an account and buy a desired amount of SOL.
You can choose among dozens of regulated crypto exchanges, but we recommend choosing CEX.IO as it provides users with convenient ways to acquire Solana coins. Another benefit of this platform is its massive library of diverse cryptocurrencies, including both major ones like Bitcoin and Ethereum, but also alternative coins like Shiba Inu.
If you’re interested in diversifying your portfolio, it’s good to know that you can buy SHIB with credit card or through PayPal, which is available for US residents.
Three reasons why Solana may Overtake Ethereum
Here are the main reasons why Solana could overtake Ethereum in the near future.
1. Solanas Speed
The primary motive for people to wager on Solana is the velocity at which it conducts transactions. Solana sets a new standard in blockchain efficiency with a block time of just 400 milliseconds and a capability of processing up to 3,000 transactions per second (TPS).
To put this into perspective, Ethereum, one of its main competitors, operates at a much slower pace with a block time of 10 to 12 seconds and approximately ten transactions per second. Similarly, Cardano, another contender, boasts a block time of 10 seconds and a TPS of 250.
The pace is crucial for a blockchain community to scale. In comparison, Visa processes 1,700 transactions per second on average and claims to be able to process as much as 24,000 TPS.
Solana’s ability to swiftly execute transactions attracts interest from corporations seeking to adopt blockchain technology and fosters a stronger community. The speed and efficiency offered by the Solana network make it an appealing option for companies and individuals looking to integrate blockchain solutions seamlessly.
2. Low Transaction Charges
One of the most significant criticisms of Ethereum is its high gas fees, which is, without doubt, one of the foremost causes buyers started looking for alternate options like Solana. This was most evident during times of network congestion when Ethereum failed to offer competitive prices, making it less attractive for certain use cases, like high-frequency trading.
For example, During the launch of the Bored Ape Yacht Club’s metaverse, Otherside, which was built on the Ethereum network, more than $150 million in gas fees were consumed. Users reported astonishingly high expenses, with some individuals revealing they had spent over $14,000 solely on transaction fees to mint just four NFTs.
These excessive costs were a result of Ethereum’s network congestion and its associated high gas fees, which can skyrocket during peak periods of activity or when popular projects like the Bored Ape Yacht Club introduce new features or products.
On the other hand, Solana boasts high throughput, allowing it to process transactions more efficiently. At the same time, this blockchain network provides lower transaction costs, with gas fees typically being a fraction of a cent, which made Solana more appealing to users.
Such claims have already been proven true after launching Magic Eden. Users mining NFTs on this network experienced negligible gas fees compared to the substantial fees incurred by users on Ethereum-based platforms like the Bored Ape Yacht Club.
3. More Convenient To Use
Many users will mention that the pro of utilizing Solana is its ease of use and snappiness. Solana aims to become a developer-friendly environment, providing contributors with a range of tools and resources to build decentralized applications (dApps) seamlessly using a variety of programming languages.
Furthermore, in contrast to Ethereum, where transactions can sometimes take minutes, Solana’s consensus mechanisms enable rapid confirmation times. As a result, transactions on this network are typically conducted within seconds, even during longer periods of network congestion.
Problems Solana may experience in the Future
One of the potential hindrances stopping Solana from taking up the NFT market was the shortage of artists constructing on the Solana blockchain community. At least, that seemed like a challenge in the beginning.
However, despite the somewhat bad odds given by some crypto experts, Solana managed to surpass Ethereum’s sales volume in December 2023 with $366.5 million in NFT sales, compared to Ethereum’s $353.2 million.
Following its December success, Solana is poised to reach yet another milestone after Magic Eden, a leading NFT marketplace in the crypto sector, announced launching a reward program on top of the Solana network.
Solana stands poised to cement its position as a formidable player in the blockchain arena with the potential optimization and scaling of Firedancer, a high-performance validator client. Should this occur, the network could potentially surpass the milestone of 1 million transactions per second, further solidifying its reputation for unparalleled speed and scalability.
Author Bio
Aleksa Djuric is a freelance writer with two years of experience in crypto, blockchain, and content writing. He found his passion for blockchain and crypto when he first visited a blockchain conference three years ago.