The Ethereum network is considered one of the most favorable blockchain eco-systems for developers and programmers. However, due to the massive transaction traffic on the network, the users have been dealing with the issue of massive transaction fees. Many blockchain projects are trying to capture the attention of the market by working on this issue.
Cardano is a relatively new blockchain project that aims to increase its transaction fees to 1 million per second with Hydra update. However, before the Cardano network can implement the update in the next year, another blockchain project called Solana network is already making waves in the crypto community by processing 2,500 transactions per second. It is expected that the Solana network is the next biggest competitor for Ethereum.
The latest statistics provided by crypto analytics firm, TradingView postulate that the performance of the Solana network has been reflecting positively on its price point throughout the year. The SOL token has experienced 13,000% price appreciation on the year-to-date index. The token started at a little below $2 at the start of 2021 and at press time per unit cost of the SOL token is valued at $230.
Recently, SOL token was able to register an ATH of $240 per unit. The most important factor that is attracting crypto projects to the network is a feature like the Proof-of-history consensus model. As per careful estimates, the POH model allows the Solana network to process 50K transactions per second without having to compromise on its decentralized status.
Solana Network and Web 3.0
Pete Humiston is an intelligence officer at the centralized cryptocurrency exchange Kraken. Humiston attributed the success of the Solana network to its association with Web 3.0 technology. He further explained that investors are attracted to the SOL network due to its fast transaction speed and manageable gas fees structure. He also complimented the user-friendly interface of the digital wallet on the Solana network.
Some people claim that the Solana network can challenge Ethereum’s market dominance if it keeps progressing at the same pace. However, Adrian Kolody, the founder of Domination Finance, recently claimed that Ethereum has many other factors to offer than transaction fees. He recently told the media that there are too many investors invested in the Ether network in comparison to Solana.