Ethereum

Stablecoin

Solana

Change

<p>The Solana crypto platform is making waves. Its remarkable performance across key indicators, in comparison to Ethereum, is drawing attention. It’s surely a sign of some dynamism. However, this comes with certain operational cost limitations. We’ll explain everything.</p>
<h2 id="h-solana-outperforms-ethereum-according-to-major-crypto-indicators">Solana outperforms Ethereum according to major crypto indicators</h2>
<p>Recent data indicates that the Solana blockchain protocol is quickly gaining ground and surpassing Ethereum in key metrics. This trend highlights a notable shift in the crypto ecosystem.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>Data brought to light by Ryan Watkins, co-founder of Syncracy Capital, showcases <a href="https://bitcoinist.com/solana-outperforms-ethereum-running-nodes-expensive/" target="_blank" rel="noopener noreferrer nofollow">Solana’s impressive performance</a> in terms of decentralized exchange (DEX) volumes, non-fungible tokens (NFTs), active addresses, number of transactions, and stablecoin transfers.</p>
<p>This bullish momentum of Solana coincides with a significant rise in the price of SOL, Solana’s native cryptocurrency. It has reached new heights, breaking through immediate resistance levels in recent months of trading.</p>
<p>The bullish trend in the crypto market has propelled SOL prices. This has revitalized activities on this blockchain. It is evidenced by the increase in the number of transactions and the rise in its total value locked (TVL) in the decentralized finance (DeFi) segment.</p>
<p>The drivers of this momentum are due to Solana’s scalability. A feature that allows deployed protocols to execute transactions and launch smart contracts at a lower cost. All this is supported by a blockchain infrastructure based on independent nodes rewarded for their commitment, which promotes decentralization and security. But there is a catch.</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <div class="entry-content-asset">
   <div class="social-embed-container">
    <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
     <p lang="en" dir="ltr">Change happens fast. Solana now rivals or surpasses Ethereum across:<br><br>– DEX Volumes<br>– NFT Volumes<br>– Active Addresses<br>– Transaction Count<br>– Stablecoin Transfers<br><br>“But Solana isn’t decentralized <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f624.png" alt="😤" class="wp-smiley" style="height: 1em; max-height: 1em;">”<br><br>Reality: Solana has ~40% the amount of nodes as Ethereum, they’re only ~5x more… <a href="https://t.co/ZBuLiTcXmf" rel="noopener noreferrer nofollow">pic.twitter.com/ZBuLiTcXmf</a></p>— Ryan Watkins (@RyanWatkins_) <a href="https://twitter.com/RyanWatkins_/status/1736971847894290706?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">December 19, 2023</a>
    </blockquote>
    <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
   </div>
  </div>
 </div>
 <figcaption class="wp-element-caption"><em>Solana outpaces Ethereum in many areas, but the operational costs of nodes remain a major issue</em>
 </figcaption>
</figure>
<h2 id="h-the-costly-operation-of-nodes-in-solana">The costly operation of nodes in Solana</h2>
<p>Beyond this remarkable performance, the analysis also highlights a crucial aspect concerning the operational cost of running Solana nodes. It turns out that operating a Solana node is about five times more expensive than running an Ethereum node.</p>
<p>The data provided by Syncrancy clearly puts this cost difference into perspective. Operating an Ethereum node costs about 550&nbsp;dollars, whereas running a high-end Solana node on Firedancer costs 5,100&nbsp;dollars.</p>
<p>This is paradoxical given that Solana boasts about having approximately 40&nbsp;% of the number of nodes compared to Ethereum. Even though the platform seems to be addressing this weakness with its relevance in terms of decentralization. In this regard, the Nakamoto coefficient, a decentralization indicator, shows a higher figure for Solana, at 21 compared to only 2 for Ethereum.</p>
<p>Moreover, Solana is committed to maximizing its lead in terms of decentralization. To this end, the crypto platform plans to launch the Firedancer validation tool, which aims to diversify and strengthen its network.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="2">
 </div>
</div>
<p>This is expected to enable it to accelerate block production. While allowing the mainnet to evolve towards processing more crypto transactions on the blockchain, without relying on external alternatives.</p>

Solana Excels and Outperforms Ethereum!

Table of Contents

Cointribune EN

Other articles published on Dec 21, 2023

Next-Generation Web3 Gaming: The Browser-Based Adventure of The Race Club

Bitcoin Under Attack by U.S. Congress

ChatGPT predicts Litecoin price for the start of 2024

Algorand (ALGO) Looks to Leverage Bull Market for Sustained Price Recovery

Ethereum Will Continue Losing Ground To Bitcoin: Glassnode

Coinbase secures French market regulator's approval

Join our free newsletter for daily crypto updates!