There have been multiple alleged Ethereum killers, but none have been able to surpass the world’s most popular altcoin. Is it then conceivable for Solana to accomplish this? Solana and Ethereum, according to Kyle Samani, Managing Partner of Multicoin Capital, might be the iOS and Android of the cryptocurrency world.
What is the influence of Ethereum on SOL?
Because of Ethereum’s high fees and sluggish transaction speeds, alternatives like Solana have risen in popularity in recent months, contributing in the project’s rapid growth. Solana was rated eighth in terms of market value at the time of publication, following a 69 percent price increase.
At the time of writing, it has risen from $1.50 at the start of the year to $76.90. The last few months have witnessed a big amount of this surge, with Ethereum’s difficulties also playing a major influence. So far, SOL has performed admirably.
It should be stressed, however, that these developments do not pose a threat to Ethereum. Instead, they might be laying the groundwork for a more scalable network. So, what’s next? Will the Solana blockchain be able to compete with Ethereum after “The Merge”?
According to Samani, a recent guest on a podcast, “The Merge’s” impact will be confined to a few percentage point increases in the market and nothing more. Meanwhile, when it comes to the topic of whether Solana will be able to supplant Ethereum, Samani believes the two can coexist.
Samani expects Solana to reach its full potential within the next 24 to 36 months.
“What’s amazing about what’s going on right now is that they coexist. They each have different rates of growth. In the near future – meaning the next 24 to 36 months – I believe Solana’s growth rate will be sustainably larger than Ethereum’s.”
According to Samani, “inertia lasts for several years,” and Ethereum will not go away due to the infrastructure it has established. He continued,
“I believe we will see two things cohabit. We have Apple’s iOS and Google’s Android. And these days, everyone understands you need to create both an iPhone and an Android app.”
The competition’s nature will be…
While there are already several competing ecosystems, when Ethereum fully evolves into Ethereum 2.0, the competition will become even more heated. The offer will, however, be for a more decentralized platform.
Although Ethereum is unquestionably more decentralized than Solana, Samani maintained that calling it centralized would be inaccurate. He explained that decentralization is a continuum, not a binary. “Who is in charge of consensus?” could be the question here.
Solana requires 19 nodes to reach 33 percent staking, but Ethereum only requires three of four mining pools to get 51 percent staking. In contrast, ETH 2.0 requires seven or eight organizations to reach one-third consensus, which is the control metric for PoS systems.
Ethereum, according to the CEO, is just 3x or 4x more decentralized than Solana. On the decentralization spectrum, this is a smaller gap.