This cryptocurrency will be the Ethereum of 2022

This cryptocurrency will be the Ethereum of 2022 - save money today 180124 tease 01The stock market as a whole has taken a hit in recent months, and cryptocurrencies have been particularly hard hit. The global cryptocurrency market has lost more than $ 1.000 trillion in the past six months, and individual cryptocurrencies have seen their prices plummet.

However, this doesn't necessarily mean you shouldn't invest Right now. Cryptocurrencies are a riskier investment, as no one knows for sure if they will survive a severe downturn. But this is also one of the most convenient times to invest, as prices are the lowest in recent months.

Choosing the right investment is difficult, because right now all cryptocurrencies are speculative. But there is one cryptocurrency that could have a bright future ahead of it: Solana.

How does Solana compare to Ethereum?

Ethereum is one of the most popular cryptocurrencies of the past couple of years and has numerous advantages. Its network is most used for decentralized applications (dApps), including decentralized finance projects (DeFi) and non-fungible token markets (NFTs).

The biggest problem facing Ethereum, however, is its speed (or lack thereof). Currently, the network can only handle about 13 transactions per second. Lower speed also means higher transaction fees, and as a result, developers and users have flocked to Ethereum's competitors.

One such competitor is Solana, which shines in areas where Ethereum falters. Like Ethereum, Solana is a smart contract platform that can host dApps. However, it boasts speeds of up to 65.000 transactions per second, making it one of the fastest networks in existence.

Solana also recently revealed her latest project, Solana Pay, which is a decentralized payment system. Solana Pay allows merchants to accept cryptocurrencies as a form of payment. Its decentralized nature means there are no middlemen, it is incredibly energy efficient, transactions happen instantly, and the fees are only a fraction of a cent.

With Solana Pay, cryptocurrency not only competes in the dApp space, but also becomes a stronger payment currency. This kind of diversity could help Solana succeed in more areas, potentially even competing with companies like Visa and Mastercard.

Is it worth investing in Solana right now?

If you have been undecided about Solana, this could be the right time to buy. Its price has fallen nearly 80% since November and, should it recover from this slump, substantial gains could be made.

That said, there are risks to consider. For one thing, Solana uses a history-proof consensus mechanism, unlike most other cryptocurrencies. While this increases Solana's speed and efficiency, it could make it less secure and more vulnerable to attack, according to a 2021 report from investment firm Grayscale.

Additionally, Solana could face tougher competition in the future, especially when Ethereum completes its upgrade. Ethereum is currently in the process of moving to a proof of stake protocol, which could potentially lead to speeds of up to 100.000 transactions per second. If that were to happen, Solana could lose her biggest competitive advantage.

This does not necessarily mean that you should not invest in Solana. Each cryptocurrency has its strengths and weaknesses, and at this point they are all speculative. Whether Solana is right for you will depend on your belief in her potential and your risk tolerance.

The cryptocurrency market may be in crisis, but has managed to recover from periods of volatility in the past. While no one knows what the future holds for cryptocurrencies, Solana could be one of the stocks to watch this year.