Analysts at crypto-focused asset management firm Pantera Capital have offered a bullish view of the Solana ecosystem compared to Ethereum. They highlight the growth of the network and outline why Solana is bound to steal a large portion of the market from Ethereum.
In their most recent blockchainletter , Pantera analysts Franklin Bi, Cosmo Jiang and Eric Wallach highlighted Solana 's “monolithic architecture” as the main reason the network was able to take market share from the developer. Blockchain development from Ethereum. They note that the developers have made blockchain a success and Chia the belief that Solana is now “a prime candidate for the future of blockchain development.”
Interestingly, these Pantera analysts likened Solana 's monolithic architecture to Apple's approach of a "vertically integrated hardware and software stack in macOS." They believe Solana 's network design delivers a number of benefits, including a seamless user experience, faster innovation and enhanced security.
Furthermore, the newsletter highlights Solana 's architectural advantages that enable a number of use cases and user experiences. This can be more difficult to implement on modular blockchains like Ethereum and Cosmos. Specifically, Solana 's capabilities are said to be valuable for use cases such as content delivery, decentralized physical infrastructure networks ( DePIN ), and central limit Order Book (CLOB). .
Bi, Jang, and Wallach go on to give examples of how Solana 's monolithic architecture "creates compelling applications." They mentioned the Non-Fungible Token drop platform DRiP achieved success which they claim is largely due to Solana's capabilities, allowing millions of Non-Fungible Token to be sent to collectors around the world without incurring significant transaction costs. tell.
The research analysts also mentioned Hivemapper and Phoenix as examples of applications that benefit from Solana's architecture. It's worth noting that asset manager Franklin Templeton also previously highlighted Solana 's "outstanding technology" and claimed the network is well-suited for the sectors and applications that will drive the wave of cryptocurrency adoption. next.
Pantera mentioned that Solana 's bull case is playing out with key fundamentals such as user growth and transaction fees skyrocketing. The company further noted that Solana has emerged as a suitable platform for retail investors and memecoin traders. Solana is also said to have supplanted Ethereum's Non-Fungible Token dominance from the previous market cycle.
Solana 's rapidly growing user base is also evident in the network's increase in unique active addresses, from just 14,000 in October 2020 to a local Dip of 202,000 in October 2023. up nearly 1.34 million. Pantera also mentioned Solana's preferred fees, which “exploded” from under $100,000 per month in mid-2023 to an All-Time-High (ATH) of over $60 million in March 2024, further further highlights the impressive demand for Solana.
Meanwhile, soaring volumes on Solana 's decentralized exchanges (DEXs) and record Token Issuance are also believed to be important fundamental factors, showing that Solana is poised to maintain its trajectory. going up and capturing a large market share in the market.
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