Solana (SOL) is ‘Uniquely Positioned’ to Snatch Market Share from Ethereum & ETH Killers, says VC


With a market cap of $4.3 billion, SOL is the 24th largest crypto asset, trading around $16.12, up 20% in the past 24 hours and 800% YTD.

Over the weekend, Sino Global Capital, which invests in blockchain projects, shared their research on why they are bullish on Solana, a high-performance blockchain that was chosen by FTX founder and CEO Sam Bankman Fried to build the decentralized derivatives platform Serum (SRM).

“Solana fills a major performance gap in the world of blockchains while remaining decentralized and composable,” reads the thread by the firm based on the research done by Max Stein, who previously was at ConsenSys. It bets,

“Solana is a bet that one day we will need fully decentralized systems that can support thousands of high-value complex transactions per second and that the chain that can support that scalability and finality today will accrue significant value.”

According to the firm, the ultrafast, low latency, high-performance blockchain is “uniquely positioned to gain market share from existing smart contract blockchains.” Ethereum is the leader in the smart contract market, and other popular ones include Polkadot, BSC, Cardano, Avalanche, Kusama, VeChain, Algorand, and many others.

Scalability and low cost, which helps both users and developers, are its notable advantages which, as we have seen many times, the second-largest network really struggles with.

Composability is another one, and “Scalable composability is not possible with sharding/layer 2s,” it says. When it comes to Solana, it can process at scale right on a single layer 1, “with transaction finality that meets institutional requirements.”

And while Binance Smart Chain (BSC) is also fast and cheap, it is “significantly less decentralized than Solana.”

Sino Global further points to Solana’s strategic ecosystem advantage — native support both for USDT and USDC, Jump Trading to be market making on Serum, and more importantly, it is aligned with Sam Bankman-Fried and “his burgeoning influential community.”

Audius, with over 2.5 million users, initially launched its ERC-20 token on Ethereum is building its settlement layer on Solana. Another project is 9-year old Maps with a 140 million user base along with Oxygen, Serum, Radium, and Civic building on the blockchain.

While mentioning the network freeze in December and the resultant criticism and caution as risks and threats, Sino Global says it has been “built from the ground up to be a scalable blockchain” by a team that has been working together for more than 15 years, which will help Solana accrue significant value.

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