Leading US crypto exchange Coinbase says Solana (SOL) is poised to become one of the strongest Layer 1 blockchain projects.
A new Coinbase analysis says that Solana is likely to become one of Ethereum (ETH)’s top contenders among the multiple-layer 1 blockchains, which are fiercely competing for capital and users.
“Layer 1 blockchains are currently competing to capture as much mindshare as possible from a shared, albeit growing, pool of capital and users. While the intensity of this competition may be less apparent amid an ongoing bear market, Solana has seemingly garnered a surprisingly high level of attention since its inception, and the ecosystem is aptly focused on bolstering its technological advantages.”
Coinbase notes that Solana suffered a setback in terms of market sentiment from the FTX collapse, but says the smart contract platform will eventually bounce back due to the “relative strength of its ecosystem.”
“Nevertheless, from a technical standpoint, the fundamental value proposition of the Solana protocol remains. Solana is a blockchain optimized for high throughput, low cost, and native scalability and represents a legitimately differentiated approach within the Layer 1 landscape. Given the relative strength of the ecosystem in terms of current network activity (e.g., transactions, users, development), we believe Solana is well positioned to assert itself as a true Layer 1 competitor.”
Solana is worth $22.67 at the time of writing, down 14.3% from its weekly high of $26.44.
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