Seeking Alpha
2022-01-12 14:55:54

Solana could take market share from ethereum, BofA analyst says

Solana (SOl-USD), the fifth largest cryptocurrency by market cap, could potentially take market share from the second largest digital token, ethereum (ETH-USD), Bank of America analyst Alkesh Shah writes in a note to clients. Solana (SOL-USD), which has a $45.9B market cap, "produces a blockchain optimized for consumer use cases by prioritizing scalability, low transaction fees and ease of use," Shah cites Solana Foundation member Lily Liu in a conference call. With 50B+ transactions settled since its launch March 2020 launch, along with $11B+ in total value locked, Solana (SOL-USD) "could become the Visa of the digital asset ecosystem," the analyst highlights. With regards to ethereum (ETH-USD), which has a $400.2B market cap, the blockchain prioritizes decentralization and security, though at the expense of scalability, which has led to periods of network congestion and higher transaction fees, Shah notes. On a technical front, Solana's (SOL-USD) +3,650% total return on a Y/Y basis

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