Bank of America says Solana will become the ‘Visa of crypto’
Is Ethereum in trouble?
Research from Bank of America is suggesting that Solana could become the “Visa of the digital asset ecosystem.”
In a research note earlier this week, Bank of America digital asset strategist Alkesh Shah said that the Solana blockchain could become an equivalent of Visa for the world of cryptocurrency and NFTs, thanks to its focus on scalability, ease of use, and low transaction fees.
“Solana prioritizes scalability, but a relatively less decentralized and secure blockchain has trade-offs, illustrated by several network performance issues since inception,” Bank of America analyst Alkesh Shah wrote in the note. “Ethereum prioritizes decentralization and security, but at the expense of scalability, which has led to periods of network congestion and transaction fees that are occasionally larger than the value of the transaction being sent.”
The Solana network launched in 2020, and ever since, its native token SOL has grown into the fifth-largest cryptocurrency with a market capitalization of $47 billion. While Ethereum is still the most popular blockchain to support NFTs, Solana has been used to mint over 5.7 million.
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