Why the "Ethereum killer" narrative may be back in Solana’s favor

Solana vs. ethereum: The Battle of Metrics

When Solana (SOL) emerged a few years ago, the ethereum (ETH) community was taken aback. Solana introduced a combination of Proof-of-Stake (PoS) and Proof-of-History (PoH) mechanisms, offering faster transactions and lower costs that ethereum had yet to achieve.

However, while Solana excelled in speed and cost-efficiency, it struggled to maintain network stability. The project faced multiple outages in 2021 and 2022, raising concerns within the crypto community.

A Rise in Solana’s Milestones

In 2023, Solana saw significant growth in its decentralized exchange (DEX) volume and Total Value Locked (TVL). On-chain analyst Patrick Scott highlighted the skyrocketing DEX volume on Solana and the recovering TVL, indicating the project’s potential to attract more liquidity.

But not everyone agreed on Solana’s success. ethereum enthusiast Ryan Sean Adams pointed out that other ethereum Layer 2 solutions, such as Optimism, zkSync, and Arbitrum, had higher TVL than Solana.

The Metrics Debate: TVL vs. TPS

The CEO of Solana’s leading Remote Procedure Call (RPC) provider, Mert Mumtaz, defended Solana’s position. He argued that TVL was a “noisy” metric and emphasized Solana’s higher Transaction Per Second (TPS) compared to ethereum.

While Solana’s TPS stood at 65,000, none of ethereum‘s Layer 2 solutions came close according to ETHTPS.info.

However, critics dismissed TPS as a vanity metric. It’s worth noting that SOL’s price needs to hold strong in the $37 region to prevent further decline, according to Cryptonary, a data-driven trader.

Looking Ahead: Solana’s Market Cap Potential

Despite the ongoing debate over metrics, Solana has the potential for exponential growth. Cryptonary suggested that the $32.50 to $33 range could be a good entry point for investors.

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As Solana continues to innovate and ethereum works on improving its scalability, the battle of metrics will likely persist. Whether Solana can truly dethrone ethereum remains to be seen, but one thing is certain – the competition is heating up in the world of blockchain technology.

### News source: ambcrypto.com

By Team