Will solana take over ethereum by end of 2024 ?

Amid crypto market crash following Bitcoin halving, Solana and Ethereum show different levels of performance. Solana’s annual increase of 480.53% contrasts with Ethereum’s decrease of 66.68%. During the previous week, Solana had a drop of 12.05%, whereas Ethereum had a smaller decrease of 1.06%. This article will analyze their most recent market performance, evaluating their potential paths in the current crypto environment and examining if Solana is positioned to surpass Ethereum.

Solana vs Ethereum:  Current Price Market Performance

 

In the continuous battle between Solana and Ethereum, the market performance illustrates two powerful entities maneuvering through the unpredictable world of cryptocurrency. Solana’s native token SOL is currently at $135.08, showing a 4.50% decrease in value in the last 24 hours. Nevertheless, taking a broader perspective reveals a more detailed story, with SOL undergoing a 12.05% decrease in the week and a significant 27.45% drop in the month.

Even with some temporary obstacles, the token has seen a remarkable increase of 480.53% in the last year, showing its ability to bounce back and remain popular among investors.

In comparison, Ethereum, along with its famous token ETH, holds a higher value of $3,164.16. However, similar to its opposite, it is dealing with recent changes, showing a 3.84% drop during the day. Nevertheless, Ethereum’s overall trend indicates a more stable path, with only a 1.06% drop in the week and a 10.75% decrease in the month.

Significantly, ETH has shown a 66.68% decline in value in the last year, highlighting the difficulties encountered in the cryptocurrency market as a whole.
Digging further, Solana’s market capitalization of $6.4 billion places it in the 5th position among cryptocurrencies, according to CoinMarketCap. On the flip side, Ethereum boasts a market cap of $386.2 billion, establishing itself as the second biggest cryptocurrency by market capitalization.

Even though they have different market capitalizations, both platforms show strong trading activity, with Solana seeing $1.98 billion in 24-hour volume and Ethereum reporting $13.5 billion.

Analyzing price movements, Solana’s recent changes had it moving between $133.96 and $143.78 in a day, whereas Ethereum traded within the range of $3,152.95 to $3,351.18. Both tokens reflect their highest values in the past, with Solana reaching $260.06 two years ago, showing a decline of 48.24%, and Ethereum peaking at $4,891.70, currently experiencing a decrease of 35.54%.

What is Ethereum?

Ethereum is the second-largest cryptocurrency by market capitalization, operating as an open-source blockchain system with its own digital currency called Ether (ETH). Founded by Vitalik Buterin in 2013, Ethereum allows for the execution of Decentralized Smart Contracts. The project was funded through a public crowd sale in 2014, leading to the official launch of the blockchain in 2015.

Ethereum aims to be the global hub for decentralized applications (Dapps), enabling programmers to create and run software without censorship or downtime. The concept of “smart contracts” was pioneered by Ethereum, with co-founder Gavin Wood envisioning it as “one computer for the entire planet.” Recent upgrades like the London Hard Fork and the Dencun Upgrade have brought scaling efficiencies and lower transaction costs to the platform.

What Is Solana?

The Solana project, initiated in 2017 and formally launched in March 2020 by the Solana Foundation, is an open-source platform leveraging blockchain technology for cost-effective DeFi solutions with a focus on speed. Its protocol supports DApp development through smart contract deployment on its blockchain, aiming to enhance scalability with a mix of PoH and PoS consensus mechanisms.

With SOL crypto priced at $104.69 on March 2, 2022, and reaching an ATH of $260.06 on November 6, 2021, Solana’s efficient model enables swift payment verification at low costs, providing a USP in the crypto industry. The innovative hybrid consensus ensures accessibility for all traders, aligning with the Foundation’s goal of broadening decentralized finance access.

Solana vs Ethereum: Key Features

Solana’s unique Proof-of-History (PoH) consensus mechanism, combined with Proof-of-Stake validation, allows it to process significantly more transactions per second than Ethereum. The platform provides each node with its clock and decision-making ability. The Byzantine Fault Tolerance (BFT) algorithm protects the system from disruptions, ensuring overall functionality. Solana supports multiple smart contracts running simultaneously, enhancing platform efficiency and versatility within its ecosystem.

On the other hand, Ethereum features smart contracts encoded into code for self-execution, enabling the creation of decentralized applications on its blockchain. Its native crypto is used for transactions and rewarding miners. With a Turing-complete virtual machine, Ethereum executes smart contracts for various applications and allows for the formation of DAOs, governed by code and consensus.

Solana vs Ethereum: Latest News

A potential spot Ethereum ETF could be on the horizon now that spot Bitcoin ETFs are no longer the focus, expected in May. Nevertheless, the schedule for this has not been determined yet, as the SEC has remained silent about the matter.

Additionally, the Ethereum Dencun Upgrade was successfully launched on the mainnet on March 13, 2024, following its deployment on all the Ethereum testnets. This is a significant advancement in the Ethereum network and a crucial step towards Ethereum 2.0.

On the other hand Solana received the Crypto of the Year award for its SOL token from CoinMarketCap, recognizing its growth and resilience. This milestone showcases its success among other notable projects in the industry.

Furthermore, Solana-focused devshop Anza has released an update to fix the intermittent congestion issues and expects a sound recovery in the Solana ecosystem.

Conclusion: Will Solana Overtake Ethereum?

Both Solana and Ethereum are significant players in the world of cryptocurrency. Ethereum, the second-largest cryptocurrency, continues to advance with upgrades like the Dencun Upgrade. Meanwhile, Solana has quickly gained recognition, even winning the Crypto of the Year award. The question remains whether Solana will surpass Ethereum by 2024. Solana’s scalability and capabilities make it a strong competitor, but Ethereum’s established environment and continuous updates suggest it will maintain its dominance. The competition between Solana and Ethereum is expected to continue as new technologies, market factors, and regulations evolve.

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Jane Lubale
CoinGape