Summer Inside Crypto Winter: Solana steals the lead from Ethereum
Solana has gradually crept up behind Ethereum even before the crypto winter began. The network had grown in popularity among users of non-fungible tokens (NFT) and decentralized finance (DeFi) who had fled Ethereum due to the high cost of shopping on the network. Nevertheless, Ethereum had managed to maintain the lead ahead of Solana. It is until now when the latter has barreled further.
The Solana transaction volume is growing
A large area where Ethereum has consistently dominated has been the volume of transactions performed on the network. Other Defi and NFT networks have had to fight for the second position, but Solana has brought the battle to the fore during the crypto winter. The network has seen transaction volumes rise higher than those recorded on the Ethereum blockchain, making it the smartest contract network with the most transactions.
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This is despite the fact that transaction fees on the Ethereum network have fallen to a two-year low. Despite this, the cost of transactions on Solana remains incredibly low compared to Ethereum, which makes it tempting for users. It also means that Solana is better at performing small transactions given that users do not have to worry about paying more in gas tax than the amount they actually move across the blockchain.
SOL declines to $33 | Source: SOLUSD on TradingView.com
Solana transaction figures came out to around 630,000 transactions for the last week. While Ethereums had released less than 500,000, which means that Solana transactions had surpassed Ethereums by more than 30% for the last 7-day period.
Wins the NFT game
The transaction volume is not the only way Solana gives Ethereum the chance. As the NFT area continues to grow, Solana has taken a larger market share. This has been made possible by the NFT marketplace Magic Eden, which has gained popularity due to a number of successful SOL launches such as the DeGods and Okay Bears collections.
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This has attracted several project entrepreneurs to the network. Society is growing, especially given the lower gas taxes required to characterize Solana. Even with the bear market and decline in NFT volume, SOL NFT transactions come out ahead of Ethereum last month.
However, the price performance of the two digital assets has not been encouraging. During the last 7 days, SOL has lost 11% of its value while ETH has fallen 7.40% in the same time period. There has been some improvement in the last 24 hours, but with 2.98% and 5.15% respectively, both SOL and ETH still have a long way to go before they reach their previous records.
Featured image from Cryptoradar, chart from TradingView.com
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