The closely followed anonymous crypto analyst and server InvestAnswers drew attention to the remarkable details of a blockchain project designed for scalability, comparing it to the leading smart contract platform Ethereum (ETH).
In its latest video, the anonymous server of InvestAnswers gave a comprehensive analysis to more than 440 thousand YouTube subscribers, comparing Ethereum to Solana (SOL), which is cited as its strongest competitor. The server first compared the technical data of Blockchains, such as the maximum transactions per second (TPS) rate and the number of decentralized applications (dApps) that can be achieved on each project's blockchains, stating:
“In terms of TPS, Solana is superior. Although Solana is still cheaper, the transaction fees are partially equal. Although it has bugs and is still in the experimental stage, we believe Solana is better technologically. In terms of ecosystem, Ethereum is superior because it has been around for much longer. Daily active user Ethereum is superior in terms of number of dApps and number of dApps. But the winner summed up is Solana.”
Continuing to look at the market caps of altcoins, the analyst said Solana is significantly behind the market cap of Polygon (MATIC), Ethereum's additional Blockchain scaling solution, which means SOL is significantly undervalued compared to ETH. He said he showed:
"That's the million-dollar question. If you look at value hunting, it's definitely a million-dollar question. I've uncovered things like Tesla and Google before they made big breakthroughs, and that's definitely the key question here. You have to invest in something early before you make big exits. One asset is compared to others. "If you're going to look at its relative value, just look at market caps. If you combine Ethereum and Polygon's market cap, you'll see that it's 17 times higher than Solana's. Does it do 17 times more? No. Of course that's my thesis."
InvestAnswers continues its analysis by considering further details of what constitutes each project's ecosystem, starting with Ethereum dating back to 2015:
“Ethereum has a fairly large ecosystem. I estimate it's three times more compared to the Solana ecosystem. It's like 3,000 dApps versus about a thousand dApps, but about five years from any other protocol in the smart contract industry as Ethereum was the first successful smart contract platform. "Ethereum's long-term strategy is very positive because this technology is not only game changer, it's based on a platform with incredible growth potential and has the largest developer community of any cryptocurrency."
The analyst states that Solana Blockchain, whose foundations were laid in 2017 and the first block was issued in 2020, is still in its early days, despite experiencing a meteoric growth among the top 10 cryptocurrencies. He explains that he expects the project to continue to mature and gain more market share from Ethereum:
“But Solana is catching up with Ethereum in this respect. It's still at a very new stage, there's about a billion dollars in TVL. "