Crypto: Solana shakes the foundations of Ethereum

At just four years old, Solana shows a stubbornness worthy of a mule. Its goal? To compete with Ethereum, the most fashionable blockchain. And it seems that the issuer of the crypto SOL is on the right track. The recent statistics are encouraging, especially in terms of profitability.

Solana Surpasses Ethereum: A Revolution in the DeFi Landscape

Comparing Capital Efficiency on @Solana to Ethereum:

The boundaries of technology and finance are being pushed in today’s DeFi sector, catalyzing a transformative era in which protocols look to leverage blockchain technology to outcompete on speed, fees, and efficiency. Within… pic.twitter.com/fyKxgy8YMT

— Reflexivity Research (@reflexivityres) March 20, 2024

After celebrating its fourth anniversary last March 16th, Solana received several gifts, including the fourth spot as the most valuable crypto in the world. BNB had to temporarily relinquish its throne. But behind this performance, other feats are hidden: soaring prices of SOL token, record in terms of DEX, attractiveness for decentralized app developers, etc. The enthusiasm of SOL enthusiasts was at its peak.

But that’s not all… This revelation from AMB Crypto lengthens the list of Solana’s recent achievements. Ethereum better stay on its toes.

Solana, the rising blockchain, surpasses Ethereum in terms of capital efficiency, thereby revolutionizing the DeFi landscape. Capital efficiency—a key concept in traditional finance (TradFi)—is just as crucial in the realm of DeFi. It reflects a company’s ability to optimize the use of its financial resources.

In the case of Solana, this efficiency surpasses that of Ethereum, according to the analysis by Reflexivity Research contained in the tweet above. Data reveals that Solana’s design presents several features that enhance capital efficiency in the DeFi sector.

Thanks to faster transaction speeds and lower fees compared to Ethereum, Solana requires less capital tied up waiting for confirmation. Additionally, its architecture allows efficient parallel processing of DeFi operations, thus reducing costs. This increased efficiency might upset the competitive landscape of DeFi, attracting more users and developers to Solana. This virtuous dynamic strengthens Solana’s position as an emerging leader in DeFi, even positioning it to challenge Ethereum in the near future.

The Volatility of SOL Crypto in Contrast with Its Network Performance

Despite the impressive performance of its network, the price of SOL has proven volatile. After reaching a peak of $209, SOL underwent a 20% drop. However, it rebounded with a 13.42% increase, reaching $195.69. Note that at the time of press, its price was $179.75.

But this recovery conceals a reality: the OBV of SOL has decreased, signaling weaker buying pressure despite the price rise. This dynamics could limit future gains or even lead to a reversal of the trend.

In the meantime, the number of active addresses on the Solana network has risen from 870,000 to 1.56 million, even though the transaction volume has remained constant.