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Earn 6.8% APY staking with Solana Compass
Help decentralize and secure the Solana network delegating your stake to us and earn an impressive 6.8% APY yield on your SOL, while supporting us to create new guides and tools.
Will Solana Replace Ethereum?
Solana is one of the prime platforms for developing decentralized finance (DeFI) and NFT launches, which are one of the most successful crypto investments currently. Could it take ETH's throne?
Ethereum is a marketplace technology that provides a means to send and receive cryptocurrency, access investments and financial services. It’s an innovative blockchain that’s programmable and provides the foundation for applications, games, and other services.
While ETH or Ethereum is one of the most prominent open-source blockchains globally, Solana is a quickly emerging option that may exceed Ethereum. ETH allowed investors to access financial contracts involving lending, borrowing, and earning interest on crypto investments while bypassing the banking system altogether.
Initially, Ethereum created a pathway to new processes and financial opportunities for cryptocurrencies. Since its beginning in 2015, ETH now faces competition with Solana, poised to provide many of the same services and applications with fewer drawbacks.
How Could Solana Compete with Ethereum?
Like Ethereum, Solana is an open-source blockchain platform that’s decentralized and facilitates transactions using SOL, the platform’s cryptocurrency. Both open-source platforms work with smart contracts and offer a solid reputation and value.
There are some indications that Solana may replace the popularity of ETH in the future due to some significant advancements and observations.
- Solana’s value continues to gain momentum and has risen quicker in value than Bitcoin over the past year. It’s over 13,000% higher in price than twelve months ago.
- It’s the current global leader in NFT (non-fungible tokens) transactions.
- In June 2021, SOL, Solana’s cryptocurrency, was listed on Coinbase.
- The platform records each transaction event accurately through the “proof-of-history” algorithm.
- Solana’s fees are lower and faster, on average than ETH.
While Ethereum established the decentralized financial system, new platforms have since emerged to improve fee structure, access to more services, including NFTs, and other successful launches.
Solana’s Competitive Advantage Vs Ethereum
One of the main features of Solana is how the platform handles chokepoints during the transaction processes. This situation typically occurs when the high volume of blockchain transactions slows the network.
While Bitcoin uses a Lightning Network to address this issue, Ethereum uses the addition of charges, known as gas fees, to resolve the chokepoint issue through the platform’s ETH 2.0 version.
Solana took a different approach to resolve this impact on networks by implementing a technology that instantly time-stamps up to 65,000 transactions each second, which is far beyond what any other platform has achieved. While other competitors require validators or miners for blockchain transactions, Solana resolves tens of thousands of actions within seconds.
Other platforms considered strong competitors for Ethereum, such as Polkadot (DOT) and Cardano (ADA), have similarly tackled the high costs of processing transactions and improving scalability.
The Growing Popularity in NFT and Gaming
Solana is one of the prime platforms for developing NFT launches, which are one of the most successful crypto investments currently. The founder of Solana, Loan Venkatapen, also founded and manages Blocklabs Capital Management, which has been instrumental in building on the platform for years.
While Solana was started in 2017, it wasn’t released until 2020, when it made a powerful impact on the cryptocurrency market with high-performing blockchain and solutions. Solana systematically improved on Ethereum’s gaps in service while focusing on NFTs. Solana is one of the first platforms to address the choke point issue, with secure and fast processing costs less than one cent per transaction.
Solana Plays Center Stage To NFTs and Crypto Gaming
Solana offers more than unique, unparalleled blockchain technology. The platform is one of the top choices for artists and performers worldwide, including festivals and event-themed art. Solana is the official blockchain of Lollapalooza and boasts a direct connection between artists and users in a decentralized blockchain.
NFTs are expected to grow in popularity as more up-and-coming creators, celebrities, and musicians mint and sell to digital investors. As Solana remains one of the top blockchains for NFTs, it’s also a popular platform to build crypto gaming systems, such as Star Atlas.
Since NFTs and gaming are among the hottest in the market, and numerous launches are standard on both Solana and Ethereum, there is a lot of growth expected in the near future in blockchain development.
Why Investors Would Choose Solana Over Ethereum
Ethereum is one of the most established blockchain platforms in decentralized finance, though Solana and other competitors have quickly made gains to challenge the platform’s steady success. Some technical advantages may influence buyers and sellers to use Solana as their primary blockchain, including the following:
- Solana is well marketed and revered as a solid blockchain for the future. The top crypto investor globally, Sam Bankman-Fried, highly approves of the platform and is considered one of the leading authorities in crypto investing.
- Solana offers lower fees, which is a stark contrast to the gas fees that Ethereum charges to maintain its transaction processing volume.
- The platform continues to build on innovative ideas, is highly scalable, and offers superior processing power that effectively keeps transactional costs down.
The Pros and Cons of Solana
What are the advantages of Solana, and why would it be the preferred platform for crypto investing? There are a few drawbacks worth noting when comparing this blockchain with its competitors:
Advantages of Solana:
- Fees are roughly one cent per transaction, considered nominal and affordable, especially for investors who buy and sell frequently.
- The platform is highly scalable and offers fast processing power.
- Solana is well known for its innovative approach to new and upcoming trends on the market, including NFTs.
- All transactions are time-stamped so that the history of actions is accurately recorded for future reference.
Drawbacks of Solana:
- There is lower ownership of the maximum supply, which amounts to about 33.9 in total
- The distribution and emissions schedule is considered unfavorable
- Solana offers the technological advantage that reduces chokepoint, but for now there are jiust over 1000 validators in total
Overall, Solana presents some significant advantages over Ethereum, though since it is a relatively new platform. Some blockchain users consider Solana’s platform to be more centralized, and the low volume of validators and ownership may convince some to remain with Ethereum or another competitor.
Fortunately, Solana continues to grow exponentially and works with smart contracts and significant growth in projects within months.
The Pros and Cons of Ethereum
Ethereum offers some clear advantages and drawbacks that are important to consider compared to Solana and other platforms.
Pros of Ethereum:
- The platform was established in 2015 and is considered a pioneer in blockchains that offers continuous improvements and developments.
- Ethereum offers a lot of space and wide adoption for various crypto investments and products, including NFTs, and DeFi (decentralized finance).
- It’s a highly secure platform that’s modular and versatile.
Drawbacks to Ethereum:
- The transactional costs are significantly higher in comparison to other blockchains, including Solana.
- Ethereum’s scalability is low, and transaction speed is also slower than other platforms.
While Ethereum offers a much more comprehensive platform than Solana, it’s slower and lacks the efficiency and cost-effective fees featured with Solana. Both platforms provide distinct advantages and drawbacks, which are all necessary features for investors to determine which attributes are preferred.
Is Solana Poised To Take Over Ethereum?
Solana is definitely a strong force in the crypto market, and there are many reasons to consider this platform as a prime successor to Ethereum. Although Solana quickly developed a faster, more efficient blockchain with lower fees, it’s a relatively smaller platform with lots of room to expand.
Ethereum remains a much larger platform than Solana, though it’s also slower and costlier. The platform will soon upgrade to Ethereum 2.0, offering faster processing and more competitive fees once this new version launches. As Ethereum is a pioneer in the crypto market, it’s considered to have a clear advantage in its experience in the industry and the potential to improve in the near future.
Will Solana take over Ethereum as a replacement in the world of crypto investing? At this stage, it’s difficult to predict for sure how far Solana will soar ahead of its competitors, including Ethereum. Since its launch in 2020, Solana has gained popularity due to its engagement in NFT launches and numerous projects, including crypto gaming.
Summary: The Future of Solana’s Success
While both blockchains offer unique advantages, with Solana offering technological benefits for users, it may be too early to ascertain if the platform will take over as the leading blockchain for crypto investing. Solana has made it clear that the brand is a platform moving forward quickly and ready to compete against all platforms in the market.
Overall, it’s worth paying close attention to Solana and how this innovative platform will grow and develop from month to month. It’s also important to consider other blockchains, such as Cordana and Polkadot, and how they plan to develop and advance over time.
While Ethereum is set to advance and improve over time, it would be wise to keep a close eye on Solana as a strong contender in the cryptocurrency market. It’s quickly become one of the most impressive blockchains for crypto investors and aims to continue improving into the future.
On this page
- **How Could Solana Compete with Ethereum?**
- **Solana’s Competitive Advantage Vs Ethereum**
- **The Growing Popularity in NFT and Gaming**
- **Why Investors Would Choose Solana Over Ethereum**
- **The Pros and Cons of Solana**
- **The Pros and Cons of Ethereum**
- **Is Solana Poised To Take Over Ethereum?**
- **Summary: The Future of Solana’s Success**
- Bridge From Ethereum To Solana To Buy Bonk
- Breakpoint 2023 Videos
- Breakpoint 2023: 365 Days of Hacking with Circle x Solana: Building Cross-chain Partnerships
- Breakpoint 2023: A Framework for On-Chain Gaming
- Breakpoint 2023: A Fireside Chat on Solana Security with Anatoly Yakovenko and Thomas Lambertz
- Breakpoint 2023: A World in a Grain of Sand: State Compression on Solana
- Breakpoint 2023: Account Abstraction on Solana
- Breakpoint 2023: An Inside Look into the Past and Future of Solana Security
- Breakpoint 2023: Auditor's Panel
- Breakpoint 2023: Back to The Future: What Bugs You Can Expect in Your Project
- Breakpoint 2023: Backpack | X
- Breakpoint 2023: Big Boba Energy - On-Chain Loyalty with Boba Guys
- Breakpoint 2023: Bonds Can Be Interesting, Too
- Breakpoint 2023: Breaking Down the Current State of Crypto VC / Funding
- Breakpoint 2023: Closing Remarks
- Bridge Technologies: Keys to Solana's Interoperability
- Bridging the Global GPU Shortage: Leveraging Solana to Build the World’s Largest Compute Grid
- Breakpoint 2023: Bringing Offchain Assets Onchain
- Breakpoint 2023: Buddy Link: The Future of Web3 Engagement
- Breakpoint 2023: Building a Creator Community
- Breakpoint 2023: Building Beyond Product
- Breakpoint 2023: Building Blocks of a Regenerative Economy
- Breakpoint 2023: Building Mobile-First
- Breakpoint 2023: Building Publique: Filmmaking Through Web3
- Building Sig, a New Read-Optimized Solana Validator
- Breakpoint 2023: Burn-and-Mint Goldilocks Tokenomics for DePIN
- Breakpoint 2023: Check the Chain Bro
- Breakpoint 2023: Composable Privacy with Sandwiching
- Breakpoint 2023: Compressed NFTs - 'Bubblegum goes Brrr'
- Breakpoint 2023: Consumer Apps Will Eat The World
- Breakpoint 2023: Creating Great Content
- Breakpoint 2023: Creating Opportunities for Artists and Collectors
- Breakpoint 2023: Creator Economy on Solana
- Breakpoint 2023: Critical Security Considerations for Web3 Builders
- Breakpoint 2023: The Rise of Crypto Payments
- Breakpoint 2023: Decoding Zero Knowledge - Building the Future of Privacy and Compliance
- Breakpoint 2023: DeFi/Insti Panel Discussion Highlights
- Breakpoint 2023: DeFi is Broken. How to Fix It on Solana
- Breakpoint 2023: DeFi Will Change Everything, Again
- Breakpoint 2023: DePIN Panel Discussion Highlights
- Breakpoint 2023: Designing a Great User Experience for Mobile
- Breakpoint 2023: Disrupting Marketplaces: Web3 Ticketing for the People
- Drift Protocol: Fusing CEX Agility with DEX Integrity on Solana
- Breakpoint 2023: DRiP on Solana
- Breakpoint 2023: Enabling High Performance Interoperability for Solana
- Breakpoint 2023: Ending the CEX Cartels: OPOS with SwissBorg
- Breakpoint 2023: ExplorerKit: The Future Standard of Parsing?
- Breakpoint 2023: Explorers, Interpreting Information for the Masses
- Breakpoint 2023: Fast Reed-Solomon Coding for Network Communications
- Breakpoint 2023: Is DePIN the Catalyst for Widespread Adoption of Web3?
- Breakpoint 2023: Finding Utility for NFTs
- Breakpoint 2023: Firedancer Update
- Breakpoint 2023: Fireside Chat with Anatoly Yakovenko & Logan Jastremski
- Breakpoint 2023: The Past, Present, and Futuristic Insights into Solana with Dan Albert & Diego Perez de Ayala
- Breakpoint 2023: Fireside Chat with Nuseir Yassin & Akshay BD
- Breakpoint 2023: FPGA Working at 8M TPS
- Breakpoint 2023: From Frustration to Functionality: Simplifying Mobile dApp Development
- Breakpoint 2023: From TradFi to DeFi
- Breakpoint 2023: Fundraising in a Bear Market
- Breakpoint 2023: Fuzzing, Formal Methods, and the State of Solana Security
- Breakpoint 2023: GainForest - Combating Deforestation Through Innovation
- Breakpoint 2023: Gaming in Web3 Panel
- Breakpoint 2023: Going to Market: Insights from a16z
- Breakpoint 2023: Governance and the Building Blocks of a DAO
- Breakpoint 2023: Head in the Clouds: Google's Web3 Plans
- Breakpoint 2023: Helium - Exploring DePIN, Helium, and Future Opportunities on Solana
- Breakpoint 2023: Helium & Swissborg
- Breakpoint 2023: Reinventing Oracles with Switchboard's V3 Secure and Dynamic Infrastructure
- Breakpoint 2023: High Performance Computing for Crypto
- Breakpoint 2023 Highlights
- Hold Me Higher, Tinydancer: Deep Dive into Solana's First Light Client
- Breakpoint 2023: How Collectibles Will Power a More Expressive Internet
- Breakpoint 2023: How Helium Migrated to Solana
- Breakpoint 2023: How MetaKeep Onboarded 4.3 Billion People to Web3
- Breakpoint 2023: How Phantom Integrated With Solana Mobile In Purely React Native
- Breakpoint 2023: How Protocols Will Replace Companies
- Breakpoint 2023: How Web3 Games Can Innovatively Acquire Users
- Breakpoint 2023: How Solana Empowers Consumer Data Sovereignty
- Breakpoint 2023: How to Build Neon on Solana
- Breakpoint 2023: How to Build Products and Influence Users
- Breakpoint 2023: How to Store Solana NFTs On-Chain - A Brief Overview
- Breakpoint 2023: Leveraging AI To Bolster Smart Contract Security
- Breakpoint 2023: Intersection of Maps, Geospatial and Web3
- Breakpoint 2023: Introducing GameShift Beta - A Simple Web3 Gaming API
- Breakpoint 2023: Introducing Ryder One: Hardware Wallets Made Simple
- Breakpoint 2023: Introducing Solana to the World of Python
- Breakpoint 2023: Introducing SolanaFM – A Quantum Leap in Blockchain Explorers
- Breakpoint 2023: Introducing the New Web3.js
- Breakpoint 2023: IONET's Vision for the Largest AI Compute Cloud on Solana
- Breakpoint 2023: IP Development and Brand Building in Web3
- Breakpoint 2023: Jito Stakenet: A Protocol for Timeless Liquid Staking Tokens
- Breakpoint 2023: Journey to Becoming a Validator
- Breakpoint 2023: Jupiter's Ambitious Plans for Solana's DeFi Ecosystem
- Breakpoint 2023: Solana Foundation Kick-Off Hosted by Alevtina Yakovenko
- Breakpoint 2023: Solana Foundation Update by Jonas Hahn
- Breakpoint 2023: Solana Foundation Kick-off Highlights
- Know Your Why - Demystifying Building on Solana
- Leveraging NFTs & Zero-Knowledge Proofs in Solana's Ecosystem
- Magic Eden: The Art of Revision
- Market Intelligence is Crypto's Defense Tech
- Breakpoint 2023: Measuring Solana's Carbon Footprint in Real Time
- Breakpoint 2023: Metaplex Fireside Chat
- Breakpoint 2023: Modular vs Integrated: Theory and Practice
- Breakpoint 2023: Music by Josh Savage
- Breakpoint 2023: Next Gen Blockchain: Builders of the Future
- Breakpoint 2023: NFT Past & The Future
- Breakpoint 2023: On-Chain Fantasy Leagues
- Breakpoint 2023: Bridging MetaMask Users to Solana
- Breakpoint 2023: Open Source Endeavors on Solana
- Breakpoint 2023: OpenBook v2
- Breakpoint 2023: OPOS – Blockchain Ticketing Comes to Life with Solana and Tweed
- Breakpoint 2023: Orca Presents the OPOS - A Game Changer for Liquidity Providers
- Breakpoint 2023: OPOS – Sling – A Breakthrough in Crypto Payments
- Breakpoint 2023: OPOS – Stablecoin and FX
- Breakpoint 2023: Payments on Solana, The Digital Commerce Revolution
- Breakpoint 2023: Phantom Quests
- Retaining the Next Billion Users with Phantom at Breakpoint 2023
- Breakpoint 2023: Pivoting in Bear Market - From P2E to Real Users
- Breakpoint 2023: Political Advocacy From the Pros: What Effective Engagement Looks Like
- Breakpoint 2023: Power Talk: Hubble Protocol
- Breakpoint 2023: Power Talk with Tarun Chitra, CEO & Founder of Gauntlet
- Breakpoint 2023: Program Runtime v2
- Breakpoint 2023: Proof of Impact - Decentralized Decision-Making at Scale
- Breakpoint 2023: Real-World Activations: Bringing Real-Life Experiences
- Breakpoint 2023 Recap - Day 1
- Breakpoint 2023 Recap - Day 2
- Breakpoint 2023 Recap - Day 3
- Breakpoint 2023: Redefining Music Ownership
- Breakpoint 2023: Reflecting on the Year; Building on Solana Pay and On-Boarding Users
- Breakpoint 2023: Removing the Risk from DeFi
- Breakpoint 2023: Harnessing The Power Of Distributed GPUs with Render Network
- Researching the Solana Ecosystem: Challenges, Learnings, and Opportunities
- Breakpoint 2023: Resetting Consumer Expectations
- Breakpoint 2023: Retroactive Public Goods Funding on Solana
- Breakpoint 2023: Reviving DeFi on Solana with Composability and Asset Backed Perpetuals
- Breakpoint 2023: Riverguard - Fishing for Loss of Funds in the Stream of Solana Transactions
- Breakpoint 2023: RWA and Banking
- Breakpoint 2023: Ensuring the Safety of SBF Programs Through Formal Verification
- Breakpoint 2023: Scaling NFT Compression to Production (and beyond)
- Breakpoint 2023: School of Solana by Ackee Blockchain
- Breakpoint 2023: Securing FireDancer
- Breakpoint 2023: Security Considerations from RPC Providers
- Breakpoint 2023: Security in Web3: Ensuring User Protection in a Decentralized World
- Breakpoint 2023: Shopify, Powered by Solana
- Breakpoint 2023: Show Me the Money: The Evolution of the Gaming Industry into a Global Powerhouse
- Simplifying Blockchain: Building Human-Centric Web3 Products
- Breakpoint 2023: Simulation of Transaction Limitation
- Breakpoint 2023: Social Media on Solana
- Breakpoint 2023: Solana and AWS
- Breakpoint 2023: Solana Communities Panel Discussion Highlights
- Breakpoint 2023: Solana Incubator: Build your company alongside Solana Labs
- Breakpoint 2023: Solana Mobile: Evolving the Tech Stack
- Breakpoint 2023: Solana RPC 2.0 Roundtable
- Breakpoint 2023: Solang: Running Solidity Natively on Solana
- Breakpoint 2023: Solatening
- Breakpoint 2023: Sooner™ Climate Challenges and Opportunities of Blockchain
- Breakpoint 2023: Innovating Secure Trading with CUBE's New Exchange
- Breakpoint 2023: Soon™ - Pyth
- Breakpoint 2023: Stablecoin Panel
- Breakpoint 2023: Stablecoins: The New Bridges Between On- and Off-Chain
- Breakpoint 2023: Star Atlas Session
- Breakpoint 2023: tBTC comes to Solana
- Breakpoint 2023: Highlighting the Tech Making the 'Only Possible on Solana' Campaign a Reality
- Breakpoint 2023: The Creator Economy in Web3 vs. Web2
- Breakpoint 2023: The Evolution of The Solana Community
- Breakpoint 2023: The Future of Finance and Blockchains with Visa
- Breakpoint 2023: The Future of FinTech on Solana
- Breakpoint 2023: The Future of Metaplex Foundation
- Breakpoint 2023: The Future of Web3 Infrastructure
- Breakpoint 2023: The Global State Machine
- Breakpoint 2023: The Good, The Bad, and The Vulnerable
- Breakpoint 2023: The GREED Experiment
- Breakpoint 2023: The Investor Nation
- Breakpoint 2023: The Little JPG that Laundered Money: Illicit Finance and Privacy in Crypto
- Breakpoint 2023: The Metis Routing Algorithm
- Breakpoint 2023: The Network State
- Breakpoint 2023: The Phoenix Rises: Why Active Liquidity Enables Sustainable Markets
- Breakpoint 2023: The Pot of Money at the End of the Rainbow - The VC Perspective
- Breakpoint 2023: The Scoop Podcast Live with Frank Chaparro & Armani Ferrante
- Breakpoint 2023: How Token 2022 in 2023 Will Shape the Future
- Breakpoint 2023: Exploring the Forthcoming Innovations with TOKEN22
- Breakpoint 2023: Tokenomics, Market Making, & Strategies to Optimize Token Performance
- Breakpoint 2023: TradFi on Chain
- Breakpoint 2023: Turning the Tides: Social Media for Enhanced Human Capabilities
- Breakpoint 2023: Under The Hood: Wallets and The Tech That Powers Them
- Breakpoint 2023: Using Compression + NFTs to Build a Data-Rich Blockchain
- Breakpoint 2023: Validated Podcast - Conversation with Rune from MakerDAO
- Breakpoint 2023: Veep or House of Cards? How Washington Makes Decisions
- Breakpoint 2023: Voices of Kibera Musical Performance
- Breakpoint 2023: Voices of Kibera Panel
- Breakpoint 2023: Want a Better User Experience? Let's Kill the Wallet
- Breakpoint 2023: Water from a Stone: Liquid Staking on Solana
- Breakpoint 2023: Web3 Music
- Breakpoint 2023: Web3 Security and Best Practices
- Breakpoint 2023: Web3 Social Won't Sell You Socks
- Breakpoint 2023: An Assembly of Innovators Shaping the Future of Web3
- Breakpoint 2023: When Are You Going to Get Serious About Security?
- Breakpoint 2023: Widening the Design Space of AMMs with Solana
- Breakpoint 2023: Winners of the Hyperdrive Hackathon
- Breakpoint 2023: Youth in Web3
- Breakpoint 2023: ZK on Solana: Private Solana Programs
- Marinade Finance
- Our Validator
- Liquidity Pools
- Token Swaps & Trading
- Yield Farming
- Solana Explained
- Is Solana an Ethereum killer?
- Transaction Fees
- Why Is Solana Going Up?
- Solana's History
- What makes Solana Unique?
- What Is Solana?
- How To Buy Solana
- Solana's Best Projects: Dapps, Defi & NFTs
- Choosing The Best Solana Validator
- Staking Rewards Calculator
- Liquid Staking
- Can You Mine Solana?
- Solana Staking Pools
- Staking On Solana
- How To Unstake Solana
- How To Unstake Solana
- How validators earn
- Best Wallets For Solana