The development of decentralized apps is thought to be critical to the future of large-scale blockchain-based solutions (DApps). Decentralized Finance (DeFi) initiatives are all the rage right now, with a significant increase in the number of networks that support them. In this sector, Ethereum is presently the leader. Today, we’re following the progress of one of its main competitors, Solana blockchain, which has over 400 projects addressing DeFi, Non-fungible tokens (NFTs), and other topics.
Fundamentals & Solana Characteristics
Solana’s scalability is one of its most notable qualities, with the capacity to execute over 50,000 transactions per second (TPS), compared to 30 TPS in Ethereum. It achieves these speeds by combining Proof of Stake and Proof of History consensus methods.
Solana’s native currency, SOL, is used to pay transaction fees and maintain the network through staking. It’s also used for imports, which are micropayments.
The entire supply of SOL is 506 million, with roughly 60% currently in circulation. SOL is presently ranked among the top ten cryptocurrencies, with a price of $150 per token and a market value of more than $45 billion..
Last month, Solana’s DeFi-based projects surpassed the $4 billion barriers, marking another achievement. Ethereum is the market leader in this sector, with over $130 billion in DeFi assets.
Potential for the Future
Solana has grown in popularity in recent months as a result of its wide scalability and mining efficiency, prompting many to assume it will be the DeFi landscape’s future leader. For the same reason, NFTs on SOL are becoming increasingly popular. However, once Ethereum 2.0 is released and addresses the speed and scalability issues, we expect Ethereum to reclaim the lead. We anticipate Solana blockchain to have its own group of supporters, given that different DeFi ecosystems can coexist in the future. As the fan base develops, SOL, the native token, will profit even more.