Ethereum vs. Solana: Coinbase Reveals the Blockchain That Will Dominate Smart Contracts in 2024

On the smart contract market, Solana has been particularly dynamic this year. So much so that some analysts nickname this crypto platform the Ethereum “killer,” the current market leader. A position that, according to the exchange Coinbase, should not be called into question in 2024.

Solana is not a threat to Ethereum according to Coinbase

Throughout the year 2023, the Solana crypto platform has captured user interest with its exceptional dynamism. But despite sustained investor interest in this blockchain, it does not threaten Ethereum’s leadership.

At least that’s the view of the crypto exchange Coinbase expressed in a recent study. The company predicts that Ethereum will maintain its dominance as the leading smart contract platform in 2024.

The Coinbase study titled “2024 Crypto Market Outlook” notes that Solana had the second largest net fund inflows, after Bitcoin, surpassing Ethereum and other crypto platforms.

According to Coinbase, it is Solana’s ability to handle high transaction volumes and maintain low fees that explain the momentum behind investments. This characteristic is also key to surpassing Ethereum in terms of transaction throughput improvement and fee reduction. But also to support a new wave of highly efficient applications. This, however, is still not enough to dethrone Ethereum.

Ethereum’s dominance to persist despite Solana’s investor appeal, Coinbase says https://t.co/CukZwEeCsx #News #Coinbase #Ethereum #Solana

— OutbackDeFi (@BushOrangutan) December 15, 2023

Ethereum unshakeable according to Coinbase

According to Coinbase, Ethereum is and will remain the most important smart contract platform in the crypto market. This is despite Solana’s growing popularity. The exchange’s argument is based on Ethereum’s operational capabilities.

It processes an average of about 1 million crypto transactions per day. It also maintains a consistent daily transfer volume of between 1 and 3 billion dollars. Not to mention the sustained dynamism of its valuation.

As of the latest news, ether (ETH) is trading at 2,280 dollars. This reflects a significant increase of 91% since the beginning of the year. Meanwhile, Solana’s SOL is trading around 78.3 dollars, up 697% since January.

Coinbase acknowledges that this increase is absolutely impressive. However, the crypto exchange also recognizes that Ethereum’s dominance is expected to persist, with Solana emerging as a potential viable alternative to Ethereum for specific use cases.