Solana is popular because it has a fast transaction speed that neither Cardano nor Ethereum can beat. On the other hand, Cardano is different because of its unique validation system.
SOL Price Vs ADA Price
In terms of price performance over the last year and how well both digital assets are doing compared to their all-time high values, Cardano emerges as the better option over Solana.
Solana, however, is designed to address two parts of the trilemma: security and scalability. SOL's proof of history algorithm provides unique security for the network. While the speed with which the Solana platform performs computations allows for increased scalability.
The goal of the Solana project is to create a blockchain platform that can handle high throughput, low latency, and low-cost transactions. And, it's achieved just that with its unique consensus algorithm called Proof of History (PoH), which allows it to process transactions faster than other blockchain platforms.
Why is Cardano so cheap compared to Solana? While Cardano has a fixed maximum number of tokens ever minted, Solana runs a deflationary system where the SOL tokens used for paying transaction fees are burnt and taken out of circulation. This helps to mitigate the effects of the number of coins.
Solana has two broad vulnerabilities that are necessary to understand for the potential longevity of the network. This includes potential problems with its monolithic construction (leading to centralization) and subsequently, problems with overall security.
Popularity and users. When compared with Solana, Ethereum is the more popular cryptocurrency by a fairly wide margin. Ethereum's market cap is about $210 billion, which is substantially higher than Solana's market cap of $12 billion.
To reach $1,000, Solana would need to increase in price by 52x from its current price, not an entirely unrealistic target for an asset that has a market cap of $7.6 billion. At $1,000, Solana's market cap would be worth $396 billion. Though this is a very large valuation, it's certainly not impossible.
Solana is Fast
With the capability to handle at least 50,000 TPS under $0.01 per transaction, Solana is now one of the fastest cryptos on the market. Solana is among the few cryptos that have a comparably low price with Visa's payment method.
Solana uses a hybrid consensus system, applying both Proof of Stake and Proof of History. This unique process is what allows Solana to solve both scalability and security. Blocks are collections of transactions on a blockchain.
As of 6 January 2023, Alameda was said to still hold over 48 million locked and staked SOL tokens representing 66.1% of all locked stake, data on Solana Compass showed.
Solana enables the development of powerful decentralized applications (dApps) for various use cases. The platform allows end-to-end development of dApps for various industries. Solana-based dApps can easily trace transactions due to the distinct PoH consensus that maintains a historical record of events.
“The rapid increase in value is largely a result of crypto gaming and successful NFT launches,” he stated. “Developers and projects have been building on Solana for years, which is manifesting in an explosion of price and adoption.”
See how Solana Labs compares to similar products. Solana Labs's top competitors include Ethereum, Polygon, and Monad Labs. Ethereum develops a decentralized platform to run blochian-based programs.
Solana has lost over $50 billion in value since the beginning of 2022, a year marked by outages, overloads, and significant exposure to Sam Bankman-Fried's FTX exchange.
In terms of transaction speeds, Solana is much further ahead of Polkadot. While Polkadot can reach around 1,000 transactions per second (TPS), Solana has a maximum speed of 65,000 TPS, making it one of the fastest blockchains on the market.
According to CoinMarketCap.com, Solana (SOL) has seen an outstanding price growth rate and is said it will trade for $160 this month. But Solana has grown massively in just two years and had you invested $100 in SOL during the presale (2020), your profit would have been over $250,000 as of today.
Should You Buy Solana? The Solana blockchain is highly efficient and very stable, and it offers low transaction fees for users. These factors combine to give the coin potential as a good long-term investment as far as cryptocurrency goes.
NFT creators and buyers alike have been lured in by the appeal of faster transaction times and more responsive marketplaces, which have played a significant role in Solana overtaking Ethereum in NFT trading volume for the first time in May 2022.
Bullish Solana (SOL) price predictions range between $67.84 and $128.15 by 2030.
In the year 2028, Solana adoption will continue to rise, with regulators starting to accept that crypto is here to stay. Investors could see SOL reaching a maximum price of $102.19 by 2028 followed by a minimum price of $93.18. The average price for 2028 is expected to be $97.69.
The average trading price of Solana is predicted to rise to $1220 by the summer of 2025, well above its current valuation of $1000. WalletInvestor is another platform that sees development for Solana in the future. According to the token's technical analysis, it will climb back above $200 by the end of 2022.
Ethereum utterly dominates the decentralized finance (DeFi) market with a TVL of more than $31 billion, compared to Solana's TVL of just over $292 million. That means Ethereum supports 100 times more value in DeFi than Solana.
Solana (SOL) has a reputation for being one of the most efficient blockchain platforms, with the ability to process up to 65,000 transactions per second. Polygon (MATIC) can process up to 7,000 transactions per second, while RenQ Finance (RENQ) can process up to thousands of transactions per second.