Analysts at the cryptocurrency-focused asset manager Pantera Capital have presented bullish arguments in favor of solana ecosystem compared to ethereum. They highlighted the growth of the network and explained why solarium It is set to steal a large share of the market from ethereum.
Why Solana will steal market share from ethereum
In his most recent crypto-owners-vote/” rel=”nofollow noopener” target=”_blank”>block chain letterPantera analysts Franklin Bi, Cosmo Jiang and Eric Wallach highlighted Solana's “monolithic architecture” as the main reason it could steal market share. ethereum in terms of blockchain developer activity. They noted that developers make a successful blockchain and shared their belief that Solana is now a “major contender for the future of blockchain development.”
Curiously, these Panther Analysts compared Solana's monolithic architecture to Apple's approach with its “vertically integrated hardware and software stack on macOS.” They believe Solana's network design offers several benefits, including a seamless user experience, faster innovation, and improved security.
Additionally, the newsletter highlighted how Solana's architectural advantages enable various use cases and user experiences, which may be more difficult to implement in modular blockchains like ethereum and Cosmos. Specifically, Solana's capabilities are said to be valuable for use cases such as content distribution, ai-trend-coins-this-bull-run/” rel=”nofollow noopener” target=”_blank”>Decentralized Physical Infrastructure Networks (DePIN)and central limit order books (CLOB).
Bi, Jang, and Wallach went on to give examples of how Solana's monolithic architecture “enables compelling applications.” They mentioned the non-fungible token (nft) delivery platform DRiP, whose success they claimed is primarily due to Solana's capabilities, which allows them to send millions of nfts to collectors around the world without incurring significant transaction costs.
These research analysts also mentioned Hivemapper and Phoenix as examples of applications that have benefited from the Solana architecture. It is worth noting that asset manager Franklin Templeton had also bitcoin-etf-issuer-franklin-templeton-bullish-on-solana-sol-foresees-it-as-3rd-largest-crypto/” rel=”nofollow noopener” target=”_blank”>previously highlighted Solana's “top technology” and stated that the network was suitable for sectors and applications that would drive the next wave of cryptocurrency adoption.
Solana's fundamental growth supports the bullish case
Pantera mentioned that the bullish case for Solana is already manifesting with key fundamentals such as user growth and transaction fees skyrocket. The firm further noted how Solana has become the go-to platform for retail investors and meme coin traders. It is also said that Solana moved The ethereum nft domain of the previous market cycle.
The rapid growth of Solana's user base is also evident in the increase in the network's unique active addresses, which have increased from just 14,000 in October 2020 and a local low of 202,000 in October 2023 to nearly 1.34 million . Pantera also mentioned Solana's priority rates, which have “exploded” from less than $100,000 a month in mid-2023 to an all-time high (ATH) of more than $60 million in March 2024, further highlighting the Solana's impressive demand.
Meanwhile, the very high volume Solana's decentralized exchanges (DEX) and record number of token launches are also said to be key fundamentals, showing that Solana is poised to maintain its upward trajectory and capture massive market share.
Featured image created with Dall.E, chart from Tradingview.com
