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Layer-1 solutions like Solana (SOL) to outperform Ethereum, here’s why

John KumiBy 0Edited by John Kiguru 28. December 20213 Mins Read
  • A crypto expert has predicted that Ethereum will likely be outperformed by layer-1 solutions like Matic, Solana, and Terra.
  • An FXStreet analyst has predicted that the Solana price will recover and rise to trade at $330.

Recently, Nikolaos Panigirtzoglou, who has become a JPMorgan’s crypto expert said Ethereum is no more unique as its key selling point – that Decentralized apps and Smart Contracts can be built on it by developers – can now be duplicated and replicated. 

It’s not unique. You’re already seeing competition from Binance, competition from Solana. And there are going to be more in the future.

A number of crypto experts cannot agree more. Su Zhu, the CEO and CIO of Three Arrows Capital and Hasu in a recent Podcast on Uncommon core disclosed that Ethereum will likely be outperformed by layer-1 solutions like Matic, Solana, and Terra. This was after he noted that a large number of institutional investors and large wallet traders put more capital on these platforms. 

Investors have recently doubled their interest in scalability solutions. This is seen in the on-chain activities and the Total Value Locked on these networks. In the last two months, the active address of Matic and Solana has recorded impressive growth. This is well agreed by experts like Altcoin Sherpa, Pseudonymous crypto analyst. 

Altcoin Sherpa’s poll

According to a poll conducted by Altcoin Sherpa a few months ago, it was disclosed that most of the participants had no Bitcoin in their portfolio as their holdings were dominated by altcoins. He further stated that layer-1 solutions will continue to perform better than Ethereum. 

There appears to be confusion on what I’m saying: I’m not saying that ETH is going to dump; I actually think the ETHBTC chart looks pretty good. I’m saying that other L1s probably outperform ETH given the overall environment/evidence of 2021/current market trends.

Skale Labs CEO believes Ethereum blockchain will still dominate

Jack O’Holleran, CEO at Ethereum development company Skale Labs, however, believes that Ethereum is more likely to remain a dominant decentralized finance blockchain considering the upcoming changes that will make it even larger and faster. 

The vast majority of smart contract developers are building in the ethereum ecosystem. Despite major partnerships being announced on other chains, we still see the absolute majority of (developers) being pulled into the ethereum vortex.

Panigirtzoglou previously said that the price of Ethereum should be over 50 percent less than its current price. Understanding the value of the asset using hashrate and the number of unique addresses should give it a trading price far lesser than its current price. He believes that the current price is an exponential increase in usage and traffic that might not materialize. 

As it stands, Solana’s market cap is more than double that of Terra and Avalanche. Based on the price trend of Solana, an FXStreet analyst has predicted that the price will recover and rise to trade at $330. Terra’s Luna on the other hand is predicted to be in price discovery. 

Etheruem is at the time of press is just under the $4,000 position following a 3 percent price drop in the last 24 hours.

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This article is provided for informational purposes only and is not intended as investment advice. The content does not constitute a recommendation to buy, sell, or hold any securities or financial instruments. Readers should conduct their own research and consult with financial advisors before making investment decisions. The information presented may not be current and could become outdated.

John is a seasoned cryptocurrency and blockchain writer and researcher, boasting an extensive track record of years immersed in the ever-evolving digital frontier. With a profound interest in the dynamic landscape of emerging startups, tokens, and the intricate interplay of demand and supply within the crypto realm, John brings a wealth of knowledge to the table. His academic background is marked by a Bachelor's degree in Geography and Economics, a unique blend that has equipped him with a multifaceted perspective. This diverse educational foundation allows John to dissect the geographical and economic factors influencing the cryptocurrency market, offering insights that go beyond the surface. John's dedication to the crypto and blockchain space is not merely professional but also personal, as he possesses a genuine passion for the technologies that underpin this revolutionary industry. With his astute research skills and commitment to staying at the forefront of industry trends, John is a trusted voice in the world of cryptocurrencies, helping readers navigate the complex and rapidly changing terrain of digital assets and blockchain innovation. John Kiguru is an accomplished editor with a strong affinity for all things blockchain and crypto. Leveraging his editorial expertise, he brings clarity and coherence to complex topics within the decentralized technology sphere. With a meticulous approach, John refines and enhances content, ensuring that each piece resonates with the audience. John earned his Bachelor's degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi. His academic background enriches his ability to grasp and communicate intricate concepts within the blockchain and cryptocurrency space. Business Email: info@crypto-news-flash.com Phone: +49 160 92211628

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