Solana [SOL] has been outperforming the rest of the cryptocurrency market. Over the last several months, a wave of platforms has begun to accept the digital asset. Grayscale, a digital asset management, has seen SOL’s rise. In its recent research, Grayscale discussed SOL, Ethereum [ETH], and other assets. The following is what the company had to say about these assets.
The report, which focuses on smart contracts, reveals the parallels between crypto initiatives and US cities. A variety of currencies were compared to New York City, Los Angeles, and other places in the ‘digital cities’ category. The analysis determined that Ethereum, the world’s second-largest cryptocurrency, shared both positive and negative qualities with New York City.
Scalability has been a primary issue for the Ethereum network. As a result, Grayscale went on to compare ETH’s congestion to that of NYC.
“…..it is vast, expensive, and congested in certain areas. However, it also features the richest application ecosystem, with over 500 apps that command a total value of over $100 billion—more than 10x larger than any other competing network.”
Moving onto Solana [like the rest of the crypto market]. The report concluded that Solana entailed properties similar to that of Los Angeles. The “structurally distinct network” that carries out faster transactions and has its eyes on a variety of use cases has led to this conclusion.
But why is Solana like LA?
Elaborating on the same the report read,
“Solana’s architecture relies on a different consensus mechanism that prioritizes speed and lowers fees though at the cost of more centralization – rather than scaling through L2 chains Solana runs transactions through a speedy L1 chain. Running roughly 2300 transactions per second as of March 15, 2022, Solana’s ecosystem can support apps like Mango Markets, an on-chain order book for trading (which is difficult to build on Ethereum’s network due to higher fees and lower speeds).
Solana is the talk of the crypto town. This has in turn driven the price of the altcoin. Just yesterday, OpenSea affirmed that it would onboard SOL. Web browser, Opera also announced support for the altcoin. Following these announcements the price of the coin shot up by nearly 10 percent.
The above image even showed the growth of an array of cryptocurrencies. Solana was seen noting the most positive change both in terms of price as well as market cap.