The co-founder of the blockchain protocol, IOTA Foundation, has partnered with Blockchain Capital to help build the future of payments and finance. Now another financial giant is jumping on board massively as well. Bank of America says Solana could be “the visa” for central banks around the world looking to use cryptocurrency as currency or store value without holding funds themselves — all while maintaining full control over their own data.
Bank of America analyst thinks Solana could be “the visa of crypto”. While the company has yet to turn a profit, their $5 billion market cap relies heavily on hype and speculation.
The “solana next visa” is a blockchain project that is looking for the “Visa of crypto”. The project is getting a lot of attention from analysts and investors.
When Solana was initially conceived, its goal was to provide a viable solution to the outrageous costs and lack of scalability in crypto that resulted from the scalability issues. The project’s strategy worked well, but more importantly, it came to light just in time to provide an option for Ethereum users who were tired of the exorbitant cost of Ether.
Solana’s potential is now apparent even to those not involved in the cryptocurrency business, thanks to its advanced technology, making it one of a select few go-to choices.
Bank of America analyst Alkesh Shah is one such example. He predicted not only that Solana would continue to expand and erode Ethereum’s market share, but also that it could eventually turn into “the visa” of cryptocurrencies. Solana is attractive to investors, developers, institutions and others because of its ease of use and much cheaper transaction costs, the Bank of America analyst said.
Solana has validated this perspective on the future of the city so far. It rose to the top of the list of cryptocurrency projects in the past 12 months, and the value of its native coin SOL rose by 4,300% in just one year. With a market value of $50 billion, the token is now the fifth largest digital asset in the industry.
Shah, who said that Solana is superior to its competitors, was among those who predicted that SOL would soon reach new heights. The project’s alternative architecture is so superior that it could potentially displace a significant percentage of Ethereum’s market share. especially considering that Ethereum has not yet adopted PoS. Solana has a throughput of 65,000 TPS and transaction costs of . However, many have predicted that SOL could soon rise to new heights, including Shah, who claimed that Solana is superior to its rivals. The project has a different design that is so much better that it could take away a significant chunk of Ethereum’s market share. Especially since Ethereum still hasn’t transitioned to PoS. In terms of power and capabilities, Solana can handle 65,000 TPS with an average transaction fee of $0.00025,00025 on average.
Ethereum vs Solana
Ethereum’s average processing speed is 13 TPS, with fees going as high as $6. It was over $15 in October 2021. Before that, in September, it surged above $20 twice and once as high as $25. it hit a record high of $71.72 per transaction in May 2021. Despite being the highest ever, the cost is still absurdly expensive and beyond compare to what Solana has to offer.
The analyst concluded that Solana could eventually become the Visa of cryptocurrencies, while Sam Bankman-Fried, the creator of FTX exchange, went even further and predicted that Solana could become the next Bitcoin. Not only does it offer a great deal of scalability, but it also emphasizes environmental sustainability, as Bitcoin’s huge environmental footprint has caused many problems for the currency in the past.
For example, Tesla chose to stop accepting Bitcoin payments in May 2021. Some believe that this action triggered the May 11 crypto market crisis, which caused the price of cryptocurrencies to fall by half. Solana consumes 24 times less energy during transactions than a mobile phone while charging.
Visit our Investing in Solana guide to learn more about this coin.
Solana is a blockchain-based platform that uses the Internet of Things to enable peer-to-peer payments. Bank of America analyst thinks Solana could be “crypto’s visa”. Reference: solana price forecast.
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