on the crypto
I have to admit I was blown away by what the Shiba Inu has done in such a short time. Shiba Inu came out of nowhere to become one of the most talked about and most popular cryptocurrencies in the world.
But I don't think Shiba Inu is the best cryptocurrency to buy right now. The digital token that tops my list is even more popular (at least, based on market cap). And I think it could be a big winner in the next few years. Here are three reasons why Solana (quotation SOL) is the only cryptocurrency I would buy right now.
1. The fastest growing crypto ecosystem
Real-world utility is an important consideration in my view when considering cryptocurrencies. This is one of the main reasons I like Solana.
There are currently around 500 projects built on Solana. They include decentralized finance (DeFi) applications, games, non-fungible tokens (NFTs), and Web3 apps. One project that I find particularly intriguing is Star Atlas. It's a huge multiplayer metaverse. Star Atlas CEO Michael Wagner said, "The overall vision of Star Atlas is not possible on any other blockchain."
Of course, Ethereum has even more projects built on it. But Solana is the fastest growing crypto ecosystem on the planet. I wouldn't say it's an "Ethereum killer" because I don't think Ethereum will go away. However, my view is that Solana will continue to gain ground and remain Ethereum's main competitor.
2. The fastest blockchain in the world
The most important reason Solana is attracting so many developers is its transaction speed. It is by far the fastest blockchain in the world.
This is actually to put it mildly. Ethereum processes between 15 and 45 transactions per second. Another emerging cryptocurrency, Cardano, processes around 250 transactions per second. Solana can handle around 50.000 transactions per second.
Ethereum's upgrade to Eth2 could change the dynamics. It could scale up to 100.000 transactions per second. However, the full update won't happen until next year.
Does this change my optimism about Solana? No. It might even get even faster. Solana co-founder Anatoly Yakovenko has publicly stated that Solana's blockchain is "about four times slower than it should be".
3. Low costs
Another big plus for Solana is its low costs. Transaction costs are less than $ 0,01. Even better, the scalability of the blockchain will allow those costs to remain low.
This competitive advantage should not be underestimated. Ethereum's transaction fees have skyrocketed. As a result, some are leaving the popular blockchain.
Hedge Fund CEO Su Zhu is one of the largest cryptocurrency investors in the world. The billionaire recently tweeted that he had "dropped" Ethereum after previously being a key supporter. He blamed the high gas taxes. Zhu also tweeted that "the millions of new users arriving" should not "be ashamed of going to other ecosystems", nor "developers should be ashamed for building on them."
Solana is and likely will continue to be a key beneficiary as users and developers move from high-cost blockchain to low-cost alternatives.
