Topic: The Ethereum killer storyline part 2 might be beginning - page 5. (Read 1544 times)

No problem


Source: Coingecko

The violet line is the SOL/ETH price, the orange line SOL/BTC and the light blue line SOL/USD.

We can see here clearly that SOL has indeed grown a bit compared to ETH this year, and it is close to the SOL/ETH all time high. However, the growth is not enough to even see a "flipping" in the smartchain market on the horizon. Ethereum's market cap is almost five times higher than Solana's, despite of the relative loss.

And since March Bitcoin has outperformed both ETH (by a lot) and SOL (slightly, and with some volatility).

I chose the "max" view to put things into perspective: SOL had a very high growth in 2023, but the reason is simply the fact that from the 2021 high it fell extremely low (95% loss). It's however true that SOL is currently one of the few Ethereum killer chains of the "second tier" which has made some progress lately in the "Ethereum killing" process. The other one is Tron (TRX). Avalanche and Cardano for example are stagnating, and BNB and TON in my opinion are "company coins" and thus do not really compete with ETH nor SOL which can be described at least as semi-decentralized.

One that is growing lately is SUI, a coin afaik derived from Facebook's failed Libra, but it's still relatively far away (ranking currently at #25) and I don't know if the smart contract capabilities are comparable to the EVM chains.

That does sound like a server most people won't feel likely to run in their own home, which means not having control of physical access and possibly not even knowing the skillsets of those who do have physical access enough to judge whether any are technical-skilled enough to be a potential threat if left alone for a moment with a virus medium or left long enough to reboot using a boot media, thus yeah, sounds too centralised alright.

As to how the values have been lately too bad you didn't put a nice vs-bitcoin chart like you have on other occasions done.

-MarkM-

The discussion about TPS is missing the point that TPS is always a function of centralization. The more TPS a layer-1 blockchain claims to allow, the more capacity/bandwidth/CPU/RAM requirements for full nodes. You have to pay a quite high performance computer already to operate an Ethereum full node, but with Solana "at full capacity" it is even worse. Solana compared to Ethereum has basically the same relation as BSV to Bitcoin.

For a simple SOL node you already need 128 GB RAM and a 12-core CPU and a 10 Gbps network connection, so called "RPC nodes" (which are the real full nodes) need even more. ETH "only" needs a 16GB RAM computer (see here), while a Bitcoin node can run still on the year-long standard of 4MB RAM. SOL claims to have >4000 nodes, but that number seems to include light nodes (correct me if I'm wrong here) which process the blockchain in real time but don't store it fully.

Ethereum is increasing its capacity via Layer-2's, like Bitcoin, and this is the way to go IMO. Not every tiny speculative memecoin transaction or every cup of coffee bought has to be recorded by all full nodes on the world. It's just a matter of resource allocation. I'm myself not a big Ethereum fan but even less a Solana (and even less a BNB/Tron) supporter.

If really Solana had discovered a breakthrough in bandwidth usage that can often be adopted by other blockchains like ETH and BTC too.

I also distrust predictions from such an "objective"    source like VanEck which are those who have applied for an US Solana ETF.

And at $143 SOL is quite far away from its ATH of $260 (current price is 55% of its ATH). Not much more than Ethereum (currently $2450, ATH $4800, so it's at 51%).

It is very headshaking to compare Ethereum and Bitcoin because they have very different capabilities and use cases heheheh. They will only be comparable if smart contracts, DeFi and NFTs will be very much active in Bitcoin which would certainly be quite an annoyance for much of the people who use and hold Bitcoin. We can be very certain of this and we have witnessed this when Ordinals had a few months of popularity.

However on Ethereum, they experience this everyday and they will experience this until much of the people will stop using it. Also, your argument change does not the reality that much of netflows are going out of Ethereum and they are going to Solana.

Yes. Seeing a founder dumping his own coins, tells me he stopped believing in it. At least, that's how I see it. Litecoin founder Charlie Lee, did the same. The only one who's still "hodling" is Satoshi. Who are we to judge, anyways? Whenever we like ETH or not, it's the one cryptocurrency that started the Web 3.0 craze. Without it, we wouldn't have decentralized apps, tokens, NFTs, etc.

I know ETH is expensive and slow at times, but no other altcoin can outmatch its level of security and reliability. If developers continue to work on it, nothing will stand on its way. Hopefully, ETH improves enough to handle a large number of transactions per day. L2 networks are just a short-term fix. The future is unpredictable, so I'd hope for the best.

High fees happen in bitcoin too, it does not necessarily mean the layer zero is shaky or insecure, rather it might indicate quite the opposite.

If ultimately the zero layer is to be where the multi-billions-fiat value balances of payments between "civilisations" and other forms of billionaire and trillionaire and such are to take place, maybe all the block space it will really need is one transaction per year or so per multibillion layer 2 network as the big "civilisations" et al balance with one-another's net trade gain or loss at their year-ends, and maybe the free transaction part of each block (if there even is such a part anymore?) offers occasional slots for other layer-2s that have backlogged enough transaction volume, rollups etc to find it worth trying to get a transaction into a layer-zero block.

If people are actually willing to pay high fees, as evidenced by those fees are getting paid, that seems to me to imply someone is actually valuing the chain they are paying such fees to get a transaction into...

-MarkM-

to be fair, Solana also has occasional unlock, but it's small enough for it to be relevant, but yeah, Ethereum's founder dumping ethereum just give pessimistic impression to the holder.
I also personally hold some amount of ETH back then now completely shifted my portfolio to solana, though I'm also waiting for it to dump as well to add some bags.

honestly, not really interested in ETH anymore, the fee problem still as annoying as ever added with the massive L2 that's spreading the liquidity to various L2 chain making TVL spread thin.

at some point, I really believe that solana will truly replace ETH if this keeps up though.

Yes, however, it does not appear to matter for the community of developers, venture capitalists and users of Solana hehehe. I have already shared the netflows on Solana and it has most of the netflows going into their network and Ethereum has the most of the netflows going out of their network. We cannot argue against netflows of money and this might be showing the future for the next months of 2024 and what might happen on 2025.

Also, have you tried onchain trading or send tokens on Ethereum. They fees for trading on Uniswap is more than $15 at present and for sending ERC20 tokens this is more than $5. This is very headshaking if people will continue to use this.

Oh dirty trick! Well played!

Wasn't he, though, supposedly trying to help it by setting it free-er to become less potentially centralised, if not quite as well playing that as Satoshi did being as how it was a little late in the game to magically turn out to have been anonymous all along?

-MarkM-

I believe Solana has the capacity to flip Ethereum. At least the owner and lead developer of Solana believes in the project unlike Ethereum where the owner Vitalik Buterin is dumping ethereum

Well, the makers of "Firedancer" (a third party node software for Solana) claim it will make SOL more reliable for daily payments. It will solve the network outages once and for all. If true, Solana would be poised to take a large share of Ethereum's market dominance. But that's it.

Regardless of how Solana improves, Ethereum will still remain #1 because of its first-mover advantage on the market. Just like Bitcoin. Again, VanEck is being too optimistic. This is expected from a company who's heavily-invested in the project. The market will decide which coins stay afloat and which ones will die in the long run. As long as there's demand for SOL, don't expect it to go anywhere soon. Who knows what the future holds for the cryptocurrency?

Maybe it is coming to be, or coming toward, time to improve terminological precision.

If one were to utilise, say, three terms: altplatform, altcoin, alttoken...

Might it not turn out to be the case that although ETH is the number one altcoin...

...Bitcoin could be fighting to become the number one altplatform?

(Implying, of course, that ETH is no altplatform but the platform to which others are alt.)

((For any insufficiently advanced bots: duh yes I mean bitcoin is not number one vs eth as a platform.))

-MarkM-

Isn't Solana the same project that has been down for hours several times? And if there is a huge increase in smart contracts, the blockchain will stop and transactions will not be processed? The bet on Solana comes from the fact that its price has increased recently, and if the same thing happened to projects like ADA or DOT, you will find similar articles, but in the end, Ethereum's value is still far from all altcoins.

I appreciate VanEck's enthusiasm. But the thing is, Solana isn't as reliable as Ethereum is. It has been a constant victim of network outages in the past. Besides, Ethereum is the one smart contract platform that started it all. The concept of Web 3.0 wouldn't have existed without Ethereum. It's a blockchain network that has an ever-growing ecosystem of dApps, tokens, and services alike. The EVM has been tried-and-tested over the years. Solana's EVM counterpart is just getting started. How could it reach a market cap half of Ethereum's? I'd say that's impossible.

Right now, SOL is being heavily-used for the issuance of new "meme" coins (tokens). All of the buzz are on "memes" such as WIF, BONK, and the likes. NFTs are still dominant on the ETH blockchain, despite SOL's performance and cost-efficiency. The market will decide which coin stays afloat, and which one will go all the way down the drain in an instant. With ETH getting cheaper and faster to use thanks to subsequent network upgrades, what use will alternative L1 networks like Solana have? Just my opinion.

Agreed. This is certainly why I mentioned that it appears to be something similar to a Netlfix show that has different seasons hehehe. This blockchain killer storyline has become a bull market indicator because this has been repeating during each beginning of a bull market.

@o48o. However, higher TPS is beginning to be an important argument for the success of other blockchains. The developers who created Arbitrum, Optimism, Base, ZKsync and these layer 2 blockchains have confirmed the argument.

Also, Solana cannot be compared the to vapor Cardano hehehehe. Much of the inflows for 3 months have been going to Solana, more developers are also going in Solana to create their dapps that need higher TPS to be useful for the people and their community has presently become much bigger.



Source https://app.artemis.xyz/flows

Haven't we already gone trough the fact how TPS is a terrible metric to use?

I don't have anything against SOL but just looking at transaction capabilities and fees is a lazy augmentation. Imho it's better to focus on the growing community and chart, because those are interesting and makes it more appealing to buy than eth.

But then again, i can't say i like lots of the winners in the chart these days, like bnb is near ath and trx has broken the ath while ago. I rather had all memecoins in top 10 and embrace the nonsense to be honest.

I think solana has always have that thing required to surpass ETH at some point.

the community is so solid and everyone is bullish about the platform, moreover unlike ETH where they offload their scalability problem solana looks like it's doing quite well with the scalability issue, no need for L2 at all which in a nutshell just funded massively by venture capital and angel investors.

at some point I also think that solana ETF if ever approved will be huge, unlike ETH where the ETF just have too much outflow day by day LOL.

Personally I've invested some in solana, hopefully it yields great in the future.

It is interesting to follow the latest report from VanEck which predicts that Solana could reach a market capitalization of 50% of Ethereum. If the $330 price prediction for SOL comes true, this will certainly be a major development in the crypto world. However, as you mentioned, this report could trigger a negative reaction from the Ethereum community, especially with the always touchy “Ethereum killer” narrative.

Solana is superior in some technical aspects such as transaction speed, lower fees, and a rapidly growing user base, but Ethereum still has a much more mature DeFi and NFT ecosystem. Most likely, this development will create increasingly intense competition between the two, similar to the serial drama that develops during bull markets.

I don't know mate,  throughout crypto's supposedly storyline, there are not success so far,

a. There is this thought that Ethereum is the so called Bitcoin killer, as it overtake Bitcoin in early to mid 2018, but that didn't happen, and others dub it "the Flippening"

b. Ripple as well, in the same breathe that time, that it will overtake Bitcoin, "The Rippening" as they dub it.

Both didn't succeed, so I doubt that by 2024, we could be hearing this so called "X" killer mentality, in my opinion. SOL is just hype, just like ADA in 2020 and others who had their chance to challenge Ethereum before.

It appears that this storyline of Ethereum killers will come very much similar to a Netflix show with different seasons during bull markets hehehehe.

The report is very simple and short, however, the title will be very much disliked by the Ethereum community.



Solana’s technological prowess could propel its market cap to reach half of Ethereum, according to a recent report from VanEck’s Market Vector. The report also projects that Solana’s price may rise to $330, which means an increase of over 50% from its current level.

“Based on third party research, Solana has the potential to reach 50% of Ethereum’s market cap, with predictions placing SOL at a price of USD 330,” the report wrote.

“These forecasts are derived from technical models available on platforms like TradingView, suggesting a possible seismic shift in the cryptocurrency landscape if this market cap increase occurs,”

As detailed, the layer 1 (L1) blockchain outperforms Ethereum in terms of key metrics like transaction capabilities, user base, and transaction fees.

Read in full https://finance.yahoo.com/news/solana-could-hit-50-ethereums-200600304.html



This is the report from VanEck and the source of the article.

https://www.marketvector.com/insights/mvis-onehundred/eth-vs-sol