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Although investors ‘have been heavily’ allocating to Solana throughout 2023, Ethereum will still be the top smart contracts platform in 2024, Coinbase says. 
In a new <a href="https://www.coinbase.com/en-gb/institutional/research-insights/research/market-intelligence/2024-crypto-market-outlook" target="_blank" rel="noreferrer noopener">report</a> titled “2024 Crypto Market Outlook,” <a href="https://crypto.news/tag/coinbase/" target="_blank" rel="noreferrer noopener">Coinbase</a> noted that throughout 2023, net fund inflows to <a href="https://crypto.news/tag/solana/" target="_blank" rel="noreferrer noopener">Solana</a>-related (<a href="https://crypto.news/price/solana/" target="_blank" rel="noreferrer noopener">SOL</a>) investment funds were second only to Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noreferrer noopener">BTC</a>), surpassing Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noreferrer noopener">ETH</a>) and other multi-asset funds flows. 
Analysts at the U.S.-based crypto exchange attributed the surge in Solana investment to the network’s ability to handle high transaction volumes and low fees, which they say are necessary to support a new wave of highly performant applications. 
<blockquote class="wp-block-quote"> 
 “Indeed, we believe that improved transaction throughput and lower fees are necessary to improve UX to onboard a series of new use cases, and Solana has an early lead in that regard.” <cite>Coinbase</cite>
</blockquote> 
 You might also like: <a href="https://crypto.news/avalanche-solana-uniswap-crypto-price-growth-november/"> 21Shares: Avalanche, Solana, Uniswap topped crypto price growth in November </a> 
Despite the growing popularity of Solana, Ethereum is still the most important smart contract platform in the cryptocurrency space, Coinbase noted. Processing an average of around 1 million transactions per day and maintaining a consistent daily transfer volume between $1 billion and $3 billion, Ethereum’s status as the top platform for decentralized applications “may not be displaced anytime soon,” Coinbase claims. 
As of press time, ETH is trading at $2,280, demonstrating a 91% year-to-date increase, according to CoinGecko data. Solana’s SOL is trading at $78.3 with a staggering 697% increase in 2023. 
Coinbase noted, though, that while Ethereum’s dominance in the smart contract space is likely to persist in the near future, Solana’s scalability and performance could make it a viable alternative for some use cases in 2024. 
The exchange’s experts added that in addition to Solana, a group of other layer-1 networks such as Aptos, Sui, Sei, and others are likely to increase competition in the space as they “handle scalability demands at the base layer.” 
 Read more: <a href="https://crypto.news/jpmorgan-bitcoin-etfs-impact-ethereum-surprise-skeptics/"> JPMorgan: Bitcoin ETF’s impact overstated, Ethereum set to surprise skeptics </a>

Ethereum’s dominance to persist despite Solana’s investor appeal, Coinbase says

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