A recent video by crypto analyst Lark Davis provided an in-depth comparison of two major cryptocurrencies—Ethereum (ETH) and Solana (SOL)—to determine which has greater future potential. Looking at various metrics like network activity, costs, market cap growth, tokenomics, and development roadmaps, here is an overview of Davis’ main conclusions.
Network Usage and Adoption
As Davis observed, “Solana over the past few months, doubling the amount of activity on Ethereum around mid-November and only recently stabilizing to a flat 300,000 active addresses near the end of the month.” This suggests Solana has seen rapid increases in platform usage and user adoption compared to Ethereum recently.
Transaction Volume and Fees
Meanwhile, on costs and activity Davis noted “Salana users are doing a heck of a lot more stuff on chain. Look at this daily transactions, the amount of daily transactions happening on Solana right now is significantly more than we’re seeing happen on Ethereum.” So Solana is facilitating far higher on-chain trade volumes, likely at lower average transaction fees.
However, Davis cautions that “…Ethereum’s market cap is actually 10 times that of Solana… which means, of course, if you’re thinking about this logically, that means Solana, comparatively, if it takes off, if it really does become the next big thing, it’s a lot of space for price appreciation in there.” So from a growth outlook, Solana’s smaller market cap suggests much greater upside potential.
Finally, in terms of future developments, as Davis highlights, “For Ethereum, we have EIP 4844 which is going to 10 to 100x decrease the fees for Ethereum layer 2os… For Solana, we have Fire Dancer, looking to upgrade the transaction speeds of Solana up to 1.2 million transactions per second.” Both chains have plans to massively scale network capacity and speeds.
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In summary, while Ethereum maintains the largest developer ecosystem, Solana is demonstrating impressive growth in usage and offers larger upside potential thanks to its still-low market cap. The next few years of development roadmaps for both chains will be pivotal. But for many crypto investors, “Solana, comparatively, if it takes off…it’s a lot of space for price appreciation,” as Davis concludes.
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