Solana (SOL) has demonstrated its power as a doable Ethereum killer as soon as once more.
Within the second quarter of this yr, the Solana blockchain achieved 40 million every day transactions, overtaking Ethereum’s roughly a million transactions, in accordance with a latest report by blockchain analytics platform Nansen.
However whereas the quick and low cost blockchain has been drawing in customers, traders are proving much less keen to leap on the native SOL cryptocurrency.
SOL to USD
The SOL worth struggled this yr because the blockchain has grappled with numerous on-chain issues.
Community outages gasoline issues
Solana has confronted 12 community outages this yr alone. The newest was on 1 June 2022 with the community down for 4 hours and 10 minutes. SOL’s worth didn’t fare properly. It noticed a worth drop of over 12%.
There’s not one root trigger for the numerous outages this yr, in accordance with the Nansen report. The 2 disruptions in April and Could have been down “stalled consensus”, whereas June’s interruption was as a result of “as a result of a runtime bug that allowed a failed transaction to be processed twice”.
This has led to SOL’s worth being worse off than a few of its rivals. Whereas solana is down round 15% over the previous seven days, cardano (ADA) is just down round 10% and XRP is up 7%, as of 20 September.
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High performers on the Solana community
Though most of Solana’s transactions within the second quarter concerned unknown entities, there have been clear favourites in accordance with Nansen when it got here to protocols.
The decentralised exchanges (DEXs) Mango Markets and Serum have been the highest two Solana purposes. Each had greater than 150 million whole transactions in the course of the quarter.
By-product buying and selling protocol, 01 Protocol, had additionally proven progress earlier this yr, regardless of being a comparatively new addition to the Solana ecosystem. It had nearly 50 million whole transactions, rating it fourth out of all protocols.
Can Solana compete with Ethereum?
The rise of extra scalable blockchains has been famous by Ethereum and fuelled its resolution to merge to proof-of-stake (PoS) system. The improve, generally known as The Merge, was accomplished on 15 September, paving the way in which for quicker and fewer vitality intensive transactions.
Ethereum’s blockchain could also be extra scalable, however its ETH cryptocurrency has not lived as much as the hype. On the time of writing, it was buying and selling down round 20% over the previous seven days.
In the meantime, Nansen makes a compelling case for Solana’s future in its report. It stated:
“The upcoming occasions that welcome new builders to the Solana ecosystem additionally level in the direction of a thriving and supportive neighborhood that’s centered on increase the area and onboarding the following technology of expertise.”
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