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Over the last few months, the competition between layer-one smart contract platforms has intensified. While Ethereum remains popular among traders and engineers, network alternatives that promise faster transaction times and lower fees have emerged.
The term “Ethereum killers,” which is widely used in the crypto-community, has gained attention recently as a result of this story.
On the most recent episode of the Unchained podcast, Sam Trabucco, Co-CEO of Alameda Research, discussed the topic, particularly in light of Solana’s expansion. Furthermore, he discussed the rationale for SOL’s price increase.
Clip: How Solana compares to Ethereum, according to Alameda Co-CEO Sam Trabucco.
What do you think of @AlamedaTrabucco‘s breakdown?
— Laura Shin (@laurashin) November 13, 2021
SOL in, ETH out?
SOL’s rally over the past few months has been beyond impressive. Despite minor setbacks, the altcoin has been able to keep up with its macro uptrend. The #5 largest token was trading above the $235-mark, having hiked by 4% at press time.
Consider this: in a couple of months, the alt went from being worth roughly $3 to the current amount. But what sparked this irrational rally?
For starters, according to the executive, it’s transaction speed. In a single second, Solana can complete 50,000 transactions. It may swiftly expand its network by adding more properties. The network claims to complete all tasks in “microseconds,” whether it’s building applications or mining SOL tokens.
Meanwhile, the network also claims to offer an incredibly low transaction fee of just $0.00025 per transaction. the exec added,
“There’s a lot of exciting projects that are being built using Solana…(it) has gotten investors quite excited as well. These projects are composable with each other and represent a future of finance, to some extent, are like legitimately happening.”
There are also different perpetuals, loan platforms, and DEXs on this network. Over 350 projects have been completed with the help of Solana. The majority of these initiatives are focused on the hottest market areas, such as DeFi, blockchain gaming, and NFTs.
Is SOL-ETH co-existence possible?
According to Trabucco, “As for all the talking I’m doing about how much is being built on Solana, much more already is built on Ethereum. It’s impossible to deny that.” He further opined,
“It’s unlikely that within a couple of years, Ethereum goes away. It already has so many uses, many people (are) using it for applications. I do think that it’s quite likely that both, Ethereum and Solana will exist.”
In addition, Solana Co-founder Raj Gokal recently expressed a similar sentiment. He dismissed the idea of “killing ETH.” He disagreed with what others believed about the L1 competition. Simply said, he considers BTC and ETH to be essential components of the crypto-ecosystem.
SOL, on the other hand, has had a fantastic start to the year. The cryptocurrency’s value has soared to new heights, increasing by more than 60% in just one month. According to a recent analysis, Solana is unlikely to be a victim of a hypothetical “crypto-winter.”