No products in the cart.
- Latest
- Trending
ADVERTISEMENT
The cryptocurrency market is made up of cycles of projects that claim to kill the giants. For example, the early history of Bitcoin (BTC) saw the emergence of altcoins that were said to become an everyday money practice.
All of these cryptocurrencies were based on the argument that they are faster and have lower fees than BTC, but these projects have not been able to attract much attention. Litecoin (LTC) and Bitcoin Cash (BCH) confirm this fact.
Both altcoins made it into the top 10 but failed to maintain their popularity. Either because no one needed a new bitcoin, or because it could not keep up with the evolution of the market and accumulate the associated attraction.
In fact, the altcoin that changed the cryptocurrency landscape was Ethereum (ETH).by disregarding being “Bitcoin Killer” Cryptocurrencies have introduced smart contracts to the blockchain world, enabling important industry trends, decentralized finance (DeFi) and non-fungible tokens (NFT).
In the early days of Bitcoin, when Ethereum was widely used, there were some problems due to slow speeds and high fees when the network was forced. As a result, many ETH killers have emerged, one of which is Solana (SOL).
Solana was designed to be a star in decentralized finance, but its biggest breakout in the blockchain space was in the NFT space. Its network facilitates the creation of dApps, which are decentralized applications.
Cryptocurrencies have hybrid models of consensus, proof of stake (PoS) and proof of history (PoH) to ensure scalability. Plus, it’s designed to keep fees low for apps with billions of users, resulting in low transaction costs.
These qualities definitely make Solana a strong competitor to Ethereum. But again, history is repeating itself, and projects that call themselves “killers” of their predecessors never cease to lose market share.
according to Arthur Hayes, BitMEX co-founder and altcoin disguised as an Ethereum killer, does not have the ability to beat the leading smart contract platforms. Businessmen believe that developer talent is far more important than cheap and fast deals.
“There are thousands of developers on Ethereum. The next blockchain may have hundreds. That’s all. Developers create this ecosystem. Build apps .”
Like other cryptocurrencies, Solana has undergone a sharp correction in 2022. under Over 90% since hitting an all-time high in November 2021.
However, unlike some projects, factors involving the Solana ecosystem itself contributed to this sinking. As observed during the lifetime of cryptocurrencies, smart contract platforms experience frequent network outages.
Since its launch in 2020, altcoins have Experienced 8 network outagesat the time of this writing.
Because of this, the community is increasingly outraged, pointing out that the Solana ecosystem’s vulnerability is the cryptocurrency’s big “Achilles heel”, preventing it from skyrocketing and showing its potential to overcome Ethereum.
In reality, SOL is not revolutionary at all! Justin Bonds, cryptocurrency researcher and founder of Cyber Capital He is just the first example of the recklessness of the basic design (to attract investors) in a major blockchain under the guise of being innovative.
Another factor contributing to the skepticism surrounding Solana was the strong support it received from Sam Bankman-Fried (SBF), the founder of bankruptcy FTX and Alameda Research, who have made strong investments in the SOL ecosystem. .
Alameda-invested Solana network tokens will be sold when the trading company files for bankruptcy. Moreover, projects that depended on funding from the Ministry of Finance do not have the funds to continue.
The SBF empire scenario caused even greater panic in Solana, and even the blocked totals dropped, reaching their lowest level in six months. Additionally, SOL token lost its market capitalization and was kicked out of the top 10.
According to Solana’s co-founders, the company did not have an asset fund on FTX. Anatoly Yakovenko said that in the current situation he still has 30 months of runway, enough time for the situation to change. However, getting Solana from Crypto Graveyard can be a very difficult task.
