The cryptocurrency market is made up of rounds of projects that claim to be giant killers. Early in the history of Bitcoin (BTC), for example, altcoins that were supposed to be practiced for everyday money emerged.
All of these cryptos were based on the argument that they were faster and had lower fees than BTC, but this did not allow these projects to gain prominence. Litecoin (LTC) and Bitcoin Cash (BCH) confirm this fact.
Both altcoins reached the top 10 but failed to sustain their popularity – either because no one needs a new bitcoin or because they couldn’t keep up with market developments and present relevant attractions to accumulate.
The altcoin that actually managed to make a difference in the crypto environment was Ethereum (ETH). By not focusing on being a “Bitcoin Killer” cryptocurrency introduced smart contracts to the blockchain world that enabled important industry trends, decentralized finance (DeFi) and non-fungible tokens (NFT).
In the early days of Bitcoin, Ethereum faced some challenges when widely used, as it also exhibits slowness and high fees when its network is forced. As a result of this, many ETH killers have emerged, and one of them is Solana (SOL).
Solana: Ethereum’s big killer
Solana was built to be a star in decentralized finance, but its biggest breakthrough in the blockchain space has been in the NFT arena. Its network manages to facilitate the creation of decentralized applications, dApps.
The cryptocurrency has a hybrid model of consensus, proof-of-stake (PoS), and proof-of-history (PoH), to ensure scalability. Moreover, it has a low transaction cost, as it is designed to keep fees low for apps with billions of users.
Undoubtedly, these qualities would place Solana as a serious competitor for Ethereum. However, once again, we see history repeating itself, and a project that declares itself to be the “killer” of its predecessor continues to lose its market share.
According Arthur Hayes, co-founder of BitMEX, no altcoin posing as an Ethereum killer has the ability to defeat the leading smart contract platform. The businessman believes that the talent of the developer matters much more than the story of cheap and fast transactions.
“Ethereum has a few thousand developers. The next blockchain might have a few hundred, and that’s all that matters. The developers create this ecosystem. They build the applications.”
Does the crypto graveyard welcome Solana?
Like other cryptocurrencies, Solana suffered a sharp correction in 2022. The altcoin is down more than 90% since its all-time high reached in November 2021.
However, unlike some projects, factors involving the Solana ecosystem itself contributed to this sinking. As observed over the months of the cryptocurrency’s life, network outages have become frequent on the smart contract platform.
Since its launch in 2020, the altcoin has experienced eight network outagesat the time of this writing.
For this reason, the community is increasingly outraged, pointing out that the fragility of the Solana ecosystem is a big “Achilles heel” for the cryptocurrency, preventing it from skyrocketing and showing the potential for defeat Ethereum.
“The reality is that SOL is not innovative at all! It’s just the first major blockchain to be so reckless in its fundamental design while claiming to be innovative (to attract investors),” said Justin Bons, cryptocurrency researcher and founder of Cyber Capital.
Another factor contributing to the skepticism surrounding Solana has been the strong support it has received from Sam Bankman-Fried (SBF), creator of the bankrupt companies FTX and Alameda Research which have made significant investments in the SOL ecosystem.
Tokens on Solana’s network that received investment from Alameda are expected to be sold when the trading company files for bankruptcy. In addition, projects that depended on treasury funds are without funding for their continuity.
The SBF empire storyline caused even greater panic on Solana, who even saw her total amount locked drop to a six-month low. Additionally, it caused the SOL token to lose its market capitalization and was kicked out of the top 10.
According to the co-founder of Solana, the company had no asset fund in FTX. Anatoly Yakovenko said he still has 30 months on the track under current conditions, which is enough time for things to change. However, getting Solana out of the Crypto Graveyard can be a very difficult task.