Solana’s co-founder, Anatoly Yakovenko, has highlighted a major difference between the network’s ecosystem and Ethereum. He noted that when a global resource becomes saturated in Solana, it doesn’t lead to good price discovery. Crypto users have added to the Ethereum and Solana debate alongside other blockchain functionalities.
Solana’s Exec Tips Network Scalability
Solana’s co-founder shares his views on the differences in scalability between the blockchain and its rival, Ethereum, with the crypto community. In a recent X (formerly Twitter) post, Anatoly wrote that price discovery isn’t at best for Solana when the global resource is saturated. Although the blockchain handles congestion, increased usage could lead to congestion.
“Fundamental difference I think between Solana’s vision and Ethereum’s is that for Solana when a global resource is saturated, price discovery isn’t good. While it’s a graceful way to handle congestion, fundamentally the hardware needs to scale up to handle the new demand. If the software doesn’t allow the validators to add more hardware to deal with the new demand, it’s a bug in the software.”
Crypto enthusiasts explained on X that Ethereum is constrained to a label of hardware/bandwidth below the decentralization level. Last year, Solana was plagued with several downtimes caused by several factors. This remains a major issue that has slowed down price development despite institutional clients’ mass adoption of the product. On Feb 6, the network suffered an outage caused by a bug that created a finite loop error.
Solana Price Creeps
Solana has emerged as a community favorite among dubbed ETH killers. Despite the massive adoption and buzz in institutional quarters, Solana has failed to clinch rapid price growth like Ethereum. Firstly, the number of smart contracts on the network continues to outperform the competition.
Furthermore, the DeFi platforms on Ethereum have gained traction following the approval of crypto ETFs. Recently, traditional firms applied for spot Solana ETF raising optimism in the market. The level of institutional investors attracted to Solana spiked after its funds recorded a string of inflows last year. However, these wins failed to boost the asset price as holders gear towards a possible spot ETF launch.