Is Solana Becoming The Preferred Choice For Ethereum Developers? SOL’s Uptrend Suggests A Shift
May 27 2024 - 7:00PM
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Since trading firms like FTX collapsed in November 2022, the Solana
blockchain has seen significant gains and regained investor
confidence, with Ethereum developers increasingly migrating to
it. According to a recent analysis by Jack Inabinet, Senior
Analyst at Bankless, with significant growth in key metrics and
SOL’s year-to-date increase of 770%, Solana has solidified its
position as a top-tier blockchain. Native teams within the Solana
ecosystem played a key role in its resurgence, but now non-native
protocols are also seizing the opportunity. Developers
Deliver On Hype Solana’s comeback, from a low of $8 in December
2022 to an annual high of $210 in March, is one of the most notable
uptrends of this bull cycle. However, the ecosystem’s growth
extends beyond its native token holders. Related Reading:
Kickstarting The Bitcoin Bull Run: Expert Says $70,000 Is The Level
To Beat According to Inabinet, developers have delivered on the
hype, starting with the PYTH airdrop, the Pyth network’s native
token. This incentivized users from different ecosystems to explore
SOL by assigning tokens to addresses interacting with Pyth oracles
across multiple networks. Additionally, Solana-native liquid
staking protocol Jito Labs conducted its airdrop, catalyzing “mass
adoption” through points-based incentive systems. While
Solana-native protocols laid the foundation for the platform’s
mainstream adoption, Ethereum developers are increasingly migrating
to SOL. Inabinet highlights that recognizing the significant
on-chain activity within Solana, projects are eager to capitalize
on the opportunity. Ethereum Developers Flock To Solana For
example, the decentralized compute-sharing network Render migrated
its token to the Solana Program Library (SPL) standard, and
MetaMask introduced Solana compatibility by introducing
“Snaps.” In addition, according to Inabinet, Aave, Ethereum’s
first lending destination, has approved the deployment of a
minimally viable version of its V3 isolated money market through
Neon Ethereum Virtual Machine (EVM), a compatible Ethereum
development environment built on top of Solana. Proposals for
independent deployments, such as the EVM-based perpetual trading
platform GMX, further demonstrate the growing interest in SOL.
However, the analyst noted that Ethereum and Solana have different
approaches to scaling, with Ethereum opting for network
fragmentation and Solana favoring a unified state. Related
Reading: Altcoin Season Soon? Quant Says This Ethereum Pattern
Could Suggest So Given these approaches, Inabinet suggests that
Solana’s alternative vision of blockchain offers attractive
features, attracting developers seeking scalability and
concentration of use. Nonetheless, the analyst cautions that
developers must take a diversified approach to maximize success and
secure market share. Inabinet concluded: The crypto industry
must hurdle a massive chasm of uncertainty to progress from infancy
into an end-state where true adoption is achieved, and trillions
upon trillions of dollars in traditional assets make their way
on-chain. Until then, application developers succumbing to blind
chain loyalty are leaving money and market share on the table. As
of press time, SOL has seen a 5% increase in the last 24 hours,
resulting in a current trading price of $171, with the next price
hurdle at $176. Featured image from Shutterstock, chart from
TradingView.com
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