Solana Founder Advocates Healthy Rivalry with Ethereum
[TL; DR]
Several Solana based dApps have integrated with the Ethereum blockchain showing the essence of interoperability rather than competition.
The Sol price has surged by over 600% during 2023 alone.
The Ethereum blockchain upgrade, danksharding, will likely increase its cooperation with other blockchains like Solana.
Introduction
Competition is a common aspect in different sectors of the economy with most firms aiming to have competitive advantages over their rivals. Usually, businesses compete to have large market shares, thereby generating much revenue to sustain their operations. The same situation exists in the blockchain sector where various crypto projects fight to outmanoeuvre the others.
Several blockchains like Solana, Cardano, Polkadot, BNB smart chain and Avalanche have been dubbed Ethereum killers because they compete with that blockchain. However, the Solana founder challenges the notion that Solana should be an Ethereum killer.
In this analysis we will focus on the Solana founder, Anatoly Yakovenko’s perception that Solana should work alongside other blockchains like Ethereum, rather than being their competitor.
Solana vs. Ethereum: Solana’s Success is Independent of Ethereum
Yakovenko is against the narrative that the Solana blockchain is an Ethereum killer, a statement that implies the blockchain aims to outcompete Ethereum out of business.
Solana CEO believes that instead of replacing Ethereum, other blockchains like Solana should use their technology to co-exist with the world’s number one smart contract platform. He recently said that he does not perceive a blockchain future where Solana will thrive while Ethereum will “die.”
Yakovenko said, “Don’t bring back the last cycle “eth killer”. It’s lame. Pareto efficient technologies can have overlapping features and will compete, but that’s all ok. I don’t see a future where Solana thrives and somehow eth dies.”
The Solana founder foresees a future where both blockchains thrive. However, for that to happen their technologies should evolve and scale to meet emerging demands. For him, competition indicates the dynamic nature of the blockchain sector. Therefore, for the blockchains to co-exist they should come up with suitable innovations.
The Solana Blockchain and the Multi-chain Future
Yakovenko said that interoperability provides a better future for web3 developers and builders. Therefore, future Ethereum upgrades that include danksharding will create a better opportunity for the two blockchains to interact.
To this Yakovenko said, “I am certain that eventually danksharding will have enough bandwidth for all of Solana’s data.” From its very beginning Ethereum has been performing very well in its DeFi and NFT products which shows the importance of Solana vs. Ethereum cooperation rather than outright competition.
Solana’s Compatibility: Coexisting with other Blockchains
There are several platforms that exist on the Solana blockchain such as NeonEVM which have features that enable them to overlap with the Ethereum blockchain.
In fact, NeonEVM, launched in 2023, can bring Solana’s processing power to the Ethereum blockchain which gives decentralized application (dApp) developers an opportunity to benefit from the two protocols, enhancing interoperability. With such a development, the blockchain technology can offer diverse solutions to problems that different smart contracts like dApps encounter.
Currently, there are several Solana dApps that have adopted multichain integration to access many users, especially NFT creators and collectors. For instance, ExchangeArt, a digital art marketplace and Aurory, a gaming franchise. have integrated support for Arbitrum and Ethereum.
Thus, Aurory and ExchangeArt’s smart contracts can communicate with Ethereum. In the end, the Solana based dApps that integrate with the Ethereum blockchain can offer their users more exposure to other products such as gaming experience.
Aurory and ExchangeArt are not the only Solana based decentralized applications to integrate with Ethereum. In December 2022, DeGods and y00ts announced that they were integrating with Ethereum and Polygon. Such moves show a multi-chain future where Solana and Ethereum can co-exist.
Solana’s Remarkable Performance: Surges Nearly 600% Year to date, outpacing other Major Cryptocurrencies
The Solana crypto has performed remarkably, increasing by 600% this year alone, a feat which a few cryptocurrencies have achieved. Basically, SOL defied the expectations of some analysts that it would underperform after the FTX exchange collapse. The reason is that FTX and its sister company Alameda Research hold large amounts of the Solana crypto.
Read also: Exploring Solana’s NFTs Marketplace: Magic Eden
The recent surge in Solana blockchain activity and its tech upgrade has pushed its value up. At the time of writing, the Solana price is $78.26 after attaining a 7% rise within the last 24 hours.
Sol Price Surge – Solana
As the diagram shows, the SOL price is in an uptrend after overcoming the $71 key resistance level. Currently, the price of SOL is heading towards the $80 mark which can give it momentum to surge above $90. The crypto investors who have put their funds in the Solana crypto at the beginning of the year have gained much.
The ETH price has also been increasing during the year. In December alone, the value of ETH has increased by 8% and is showing a sustained upward trajectory as the next graph shows.
ETH Price Rise - CoinDCX
As The Graph indicates the ETH price has risen significantly since mid-October 2023. ETH, currently trading at $2,266.39 is now targeting $2,350 which coincides with level R3 of the Fibonacci pivot point. However, by comparison, the Solana price has performed better than ETH this year.
Conclusion
Anatoly Yakovenko has called on the crypto sector to stop viewing Solana as an Ethereum killer. This is because there is room for the two blockchains to co-exist and share vital services. For the Solana CEO, there is no way in which the Solana blockchain will thrive while the Ethereum one will “die.” Meanwhile, the Solana price has increased by more than 600% since the beginning of 2023.
