Bank of America Analyst Think Solana can be “the Visa of crypto”
The co-founder of 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 in a big way too. 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 can be “the Visa of crypto”. While the company has yet to make a profit, their $5 billion market cap is heavily dependent on hype and speculation.
The “solana next visa” is a blockchain project that is looking to be the “Visa of crypto”. The project has been getting a lot of attention from analysts and investors.
When Solana was initially imagined, its purpose was to provide a viable remedy for the excessive fees and lack of scalability in crypto that resulted from the scalability problems. The project’s strategy worked well, but more crucially, it came to light just in time to provide Ethereum users who had grown tired of Ether’s exorbitant costs an option.
Solana’s potential is now apparent even to people who are not involved in the cryptocurrency business thanks to its cutting-edge technology, which helped it establish itself as one of a select few go-to choices.
Alkesh Shah, a Bank of America analyst, is one example. He not only forecast that Solana would keep expanding and eroding Ethereum’s market share, but also that it might eventually turn into “the Visa” of cryptocurrencies. Solana is appealing to investors, developers, institutions, and others because to its ease of use and much cheaper transaction costs, according to the Bank of America analyst.
Solana has thus far validated this perspective on the future of the city. It rose to the top of the list of cryptocurrency projects during the last 12 months, and the value of its native coin SOL increased by 4,300% in only one year. With a market worth of $50 billion, the token is now the fifth-largest digital asset in the sector.
Shah, who said that Solana is superior to its competitors, was one of those who projected that SOL may soon reach new heights. The project’s alternative architecture is so superior that it may enable it to displace a sizeable percentage of Ethereum’s market share. especially given that Ethereum hasn’t yet adopted PoS. Solana has a processing capacity of 65,000 TPS and a transaction cost of However, many have predicted that SOL could soon go up to new heights, including Shah, who argued that Solana is superior to its rivals. The project has a different design that is so much better that it could allow it to take away a sizable portion of the market share from Ethereum. Especially since Ethereum still didn’t switch to PoS. In terms of power and possibilities, Solana can process 65,000 TPS with an average transaction fee of $0.00025..00025 on average.
Ethereum vs. Solana
The average processing speed of Ethereum is 13 TPS, with fees that may go up to $6. It was more over $15 in October 2021. Prior to that, in September, it increased twice to above $20 and once even to $25. In contrast, it reached a record high of $71.72 per transaction in May 2021. Despite the fact that this is the highest it has ever been, the costs are still absurdly costly and cannot be compared to what Solana has to offer.
The analyst concluded that Solana may eventually turn into the Visa of cryptocurrencies, while Sam Bankman-Fried, the creator of FTX exchange, went even farther and predicted that Solana might turn into the next Bitcoin. It not only offers a great rate of scaling, but it also emphasizes environmental sustainability, since Bitcoin’s enormous carbon footprint has historically caused the currency a lot of problems.
For instance, Tesla chose to stop accepting Bitcoin payments as a result in May 2021. Some believe that this action is what precipitated the May 11th crypto market crisis, which saw the price of cryptocurrencies fall in half. Solana uses 24 times less energy during transactions than a mobile phone would while it is being charged.
Visit our Investing in Solana guide to find out more information on this coin.
Solana is a blockchain-based platform that uses the Internet of Things to enable peer-to-peer payments. Bank of America analyst think Solana can be “the Visa of crypto.” Reference: solana price prediction.