Home Crypto Coinbase Says One Ethereum Rival Emerging As Major Long-Term Layer-1 Competitor

Coinbase Says One Ethereum Rival Emerging As Major Long-Term Layer-1 Competitor

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Coinbase Says One Ethereum Rival Emerging As Major Long-Term Layer-1 Competitor

Source: dailyhodl.com

The top US crypto exchange Coinbase says Solana (SOL) is poised to become one of the strongest layer-1 blockchain projects.

New Coinbase analysis says Solana is likely going to emerge as one of the top Ethereum (ETH) rivals among the multiple layer-1 blockchains fiercely competing against each other for capital and users.

“Layer-1 blockchains are currently competing to capture as much mindshare as possible from a common, albeit growing, pool of capital and users. While the intensity of this competition may be less apparent in the midst of an ongoing bear market, Solana has seemingly captured a surprisingly sticky amount of mindshare since its inception and the ecosystem is aptly focused on bolstering their technological advantages.”

Coinbase notes that Solana suffered a setback from the FTX collapse in terms of market sentiment, but says that the smart contract platform will eventually bounce back due to its “ecosystem’s relative strength.”

“Nevertheless, the fundamental value proposition of the Solana protocol persists from a technical perspective. A blockchain optimized for high throughput, de minimis costs and native scalability, Solana represents a legitimately differentiated approach within the layer-1 landscape. Given the ecosystem’s relative strength in terms of current network activity (e.g. transactions, users, development), we believe Solana is well positioned to reassert itself as a genuine layer-1 competitor.”

Solana is worth $22.67 at time of writing, down 14.3% from its weekly high of $26.44.

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