Ethereum ETH/USD or Solana SOL/USD, which is better? Massive gains in the latter have prompted that question on Twitter.
What Happened: Kraken Founder Dan Held asked on Twitter recently if Solana was a better smart contract platform than Ethereum and got several noteworthy responses.
See Also: How To Buy Solana (SOL)
Cryptocurrency analyst Willy Woo said that Decentralized Finance or DeFi apps run better on Solana.
The DeFi apps that run on it run a lot better.
— Willy Woo (@woonomic) August 31, 2021
There’s a few videos on how SBF’s team chose Solana on their quest to build a DEX with proper order books (Serum). It technically wouldn’t be doable on ETH and still be usable; too slow and too expensive.
Former chief marketing officer of the dating app Hinge, Nathan Roth said Solana was better for the non fungible token (NFT) use case.
For the NFT use case, it's faster, cheaper, easier.
— Nathan Roth (@NathanCRoth) August 31, 2021
Blockchain advocate and speaker Adel de Meyer said she was shifting projects on BSC, SOL, and Enjin jump net. She said on Twitter, “I'm personally over ETH and its mess.”
A lot of replies that held received were centered around the high transaction fee or Gas on the Ethereum blockchain.
It looks like SOL was build with a clean start... so I vote yes.
— Ad-Astra.eth (@AdAstra888) September 1, 2021
Gas fees on ETH are absolutely non starter. Anyone who solves that will win.
I tried to experiment with DeFi. Put $500 to play. I tried to withdraw they say $440 gas. Basically I lost the $500...
I'm soured on Ethereum after a $70 gss fee to buy and a $280 dollar fee to transfer my initial 1k purchase of ETH to a cold wallet. So, if I transfer it back and sell it how much will ETH have to appreciate just to break even? This is a fairly common experience. That's a problem.
— Punk Roxie (@ra_rabble) August 31, 2021
Why It Matters: The Sam Bankman-Fried-backed Solana is focused on providing DeFi solutions as well as facilitating DApp creation. Ethereum has been riding on the DeFi and DApp buzz as well.
Both ETH and SOL have been buoyant in recent days but SOL has been touching new all-time highs of late.
Thursday late night, SOL, often labeled as an Ethereum-killer, touched an all-time high of $136.92 — and the cryptocurrency has skyrocketed 7,210.82% so far this year. In comparison, ETH has shot up 416.33%.
At press time, over 24 hours SOL traded 18.89% higher at $135.41, while ETH traded 1.33% higher at $3,808.82.
Recently, Solana received a boost after the launch of the Pyth oracle and the Wormhole network, which acts as a bi-directional bridge between SOL and ETH.
“The need for [a] scalable network is needed right now, as opposed to years away as is the case for Ethereum given its much needed undergoing transition to PoS [Proof of Stake],” said Denis Vinokourov, head of Synergia Capital at the time of Wormhole’s launch.
Meanwhile, a lot of the price action around ETH can be attributed to the white-hot NFT scene.
Alexandra Clark, a trader at GlobalBlock, a United Kingdom-based asset broker said, “The recent spike in NFT activity has prompted a rise in transaction volume and active addresses on the Ethereum network, as well as a deflationary supply,” reported CoinDesk.
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