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

Mon 18 Dec 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed ▪ Blockchain

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.

Ethereum and Solana blockchain logos

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.

Coinbase predicts that despite Solana’s rise, Ethereum will retain its status as the leader in smart contracts

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.

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Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.