Crypto Moves #38 – Ethereum versus Solana
Solana, currently the fifth-largest cryptocurrency, has made a remarkable resurgence, particularly since the beginning of 2023. This comeback is extremely impressive given that many had written off Solana after the collapse of Sam Bankman-Fried’s FTX empire in November 2022. FTX had been crucial in promoting Solana and establishing its vital network effect from the start.
Chart 1: Bitcoin, Ethereum, and Solana Prices Since January 1st 2023
A new transactional revenue-champion?
Solana’s impressive comeback is not only because it was too severely beaten down after the FTX collapse in November 2022 but also due to the unparalleled growth in onchain activity driven by an increasing number of applications, tokens, and users on its blockchain since then. In recent months, as Solana continues to see strong activity, while more of Ethereum’s activity migrates to its lower-fee Layer 2 blockchains, Solana has come close to matching the transactional revenue of Ethereum, the ultimate leader in blockchain transactional revenue.
Chart 2: Ethereum vs. Solana Transactional Revenue
Solana has been the standout performer among the larger cryptocurrencies over the past year. On the metric of transactional revenue, one of the most critical indicators, it may seem like Solana is about to dethrone Ethereum. However, this is not the case. Ethereum continues to thrive, and there is no indication that this will change anytime soon.
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