Solana is gaining popularity among institutional users for its low fees and high transaction speeds, displacing Ethereum.
Solana's Rise Among Institutional Users
A growing number of crypto brokers are now using Solana blockchain for transactions exceeding $1 million due to its lower transaction fees and faster processing times compared to Ethereum. Solana has led in DEX volume for five consecutive months, reaching $105.86 billion.
Ethereum's Challenges: Fees and Performance
Ethereum's rising gas fees and performance issues have caused user dissatisfaction. Solana's average transaction fee remains below $0.01, while Ethereum's can exceed $50. Ethereum processes 12-15 TPS, whereas Solana handles over 2,000 TPS.
Market Impact and Ethereum's Outlook
The increasing popularity of Solana may cause Ethereum to lose some institutional users if they don't address scalability and fee concerns. Ethereum developers are working on upgrades, but solutions are yet to be implemented. Meanwhile, Solana is strengthening its market position by meeting current demands.
The rising popularity of Solana highlights that Ethereum must address scalability issues and reduce transaction costs to remain competitive. Otherwise, companies might continue migrating to faster and cheaper platforms.
