Ethereum has recently broken out of a long-standing ascending triangle, signaling its readiness to seize the spotlight from Bitcoin. However, when considering long-term prospects, Solana emerges as a potentially superior option.
Ethereum Breakout Impact
With Ethereum’s breakout from an ascending triangle since June 2022, the cryptocurrency market anticipates significant momentum. The market looks to Ethereum to provide the impetus necessary for breaking away from Bitcoin’s shadow, even if only temporarily.
Major Hurdles To Overcome
Despite Ethereum’s recent achievements, it faces significant hurdles in establishing itself as the world’s leading blockchain for future crypto projects. The “trilemma” of scalability, decentralization, and security presents challenges, with transaction speed being a notable concern.
- Security: Ethereum has successfully addressed security concerns.
- Transaction Speed: However, Ethereum still grapples with transaction speed issues, necessitating the implementation of layer 2 solutions.
Meanwhile, Solana is quietly developing solutions to the trilemma. As a layer 1 blockchain, Solana seems to have overcome the speed challenge.
Despite the challenges faced during the bear market, Solana developers have persistently worked on enhancing the blockchain’s capabilities. The introduction of another Solana validator client, Firedancer, by late 2024 is expected to be a game changer.
- Transaction Speed: Solana, theoretically capable of achieving 65,000 transactions per second (TPS), is addressing speed issues.
- Firedancer: The introduction of Firedancer is anticipated to revolutionize Solana’s capabilities, potentially achieving speeds comparable to those required for stock markets like the Nasdaq, with almost zero latency.
While Ethereum and its ecosystem may experience a positive short-term trend, Solana, with its continuous development and promising features, stands out as a cryptocurrency to watch over the long term. Hold on to your hats.