Solana could become the Visa of digital assets: Bank of America

Bank of America analyst

Alkesh Shah

published a research note on cryptocurrency and established his argument about the potential of

Solana

to take over the market share of Ethereum in future, according to a businessinsider.com report. Shah said that Solana has several use cases for consumers, and it could become the Visa of digital assets. He pointed out that Solana’s differentiation from Ethereum is making it successful and the valuation gap provides an opportunity for Solana.

He outlined the advantages of Solana that could clearly give it an edge over Ethereum and take away its market share in the future :
* Shah said that with Solana's utility for micropayments, gaming, and non-fungible tokens (NFTs), the cryptocurrency could become the Visa of the digital asset ecosystem.
* The blockchain of Solana is optimized for consumer use cases by prioritizing scalability, low transaction fees and ease of use, Shah said, citing Solana Foundation member Lily Liu.
* Solana has already become the fifth-largest cryptocurrency, with a market cap of $46 billion, $10 billion total value locked (TVL) and 50 billion transactions settled since its launch only in March 2020.
* Solana is a hybrid of Proof of History (PoH) and Proof of Stake (PoS) consensus mechanisms, where PoH helps improve the performance of its Proof of Stake consensus mechanism.
- This facilitates the highest transaction speed of 65,000 transactions per second with average transaction fees of $0.00025, while remaining relatively decentralized and secure.
* Solana prioritizes scalability at the expense of being a less decentralized and secure blockchain while Ethereum blockchain prioritizes decentralization and security at the cost of scalability.
- The scalability problem of Ethereum has led to periods of network congestion and ultra-high transaction fees.

Coinbase Chief product officer Surojit Chatterjee in his predictions on Ethereum, Metaverse and scalability published on Coinbase blog on December 30, 2021, had also observed that Ethereum scalability would improve but in the meanwhile other cryptocurrencies would pace up with better scalability and use cases and can leave Ethereum behind.