According to the Bank of America (BoA) analyst, Alkesh Shah, Solana (SOL), the fifth-largest cryptocurrency by market capitalization, could beat Ethereum (ETH), the second-largest crypto, to become the Visa of the cryptocurrency ecosystem.
Shah said this in a research note to clients published Tuesday. In the note, he stated that Solana (SOL) could potentially take market share from Ethereum (ETH).
Shah further noted that Solana (SOL), which currently has about $45.9 billion market cap, “produces a blockchain optimized for consumer use cases by prioritizing scalability, low transaction fees and ease of use.”
Solana (SOL) Could Become Visa of Crypto Space
In the note, BoA analyst said with over $50 billion transactions settled since its launch in March 2020 and over $11 billion in total value locked, Solana (SOL) could become the Visa of the digital asset ecosystem.
Shah also cited the more than 400 decentralized applications (Dapps) on the Solana network, which host everything from peer-to-peer (p2p) exchanges to non-fungible token (NFT) marketplaces.
On the other hand, he said Ethereum could become the blockchain for “high-value transactions and identity, storage and supply chain use cases.”
The analyst pointed out that Ethereum, which has a relatively $400 billion market cap, is a blockchain that prioritizes decentralization and security. He, however, stated that all these are at the expense of scalability, which has resulted in periods of network congestion and higher transaction fees.
On a technical front, Solana’s +3,650% total return on a Y/Y basis also eclipses that of Ethereum +207%.