Pantera Capital Bullish on Ethereum Competitor Solana
Pantera Capital, a digital asset investment firm, is positive on Ethereum (ETH) competitors Solana (SOL) and Near in 2022. Pantera partner Paul Veradittakit writes in his recent letter to investors that other smart contract platforms are eroding Ethereum’s market dominance, which currently stands at 63 percent of total value locked (TVL) in decentralized finance (DeFi), down from 97 percent at the start of 2021. According to Veradittakit, Solana (SOL), which promises to be a speedier and more affordable alternative to Ethereum, is especially well-positioned for growth in 2022, owing to the growing number of projects in its ecosystem.
“Solana, which provides unmatched transaction throughput, had an outstanding year in 2021, hitting a high TVL of $15 billion and a peak price of $260 in November, up from $0.22 when it started trading in April 2020. Recent action in the Solana community, like as the establishment of significant funds for decentralized social media and games, indicates that the ecosystem will continue to develop exponentially over the next year.”
According to Veradittakit, Near, which established the Rainbow Bridge in April to facilitate the movement of crypto assets across blockchains, is likewise poised for rapid growth.
“Bridges (which enable interoperability across radically disparate networks), such as NEAR’s Rainbow Bridge, will aid in the acceleration of the creation of non-Ethereum ecosystems by increasing liquidity and facilitating the composability of digital assets. Additionally, Ethereum virtual machine (EVM) platforms, such as Aurora on NEAR, are making it simpler than ever for Ethereum-based DApps (decentralized applications) to launch on other chains, improving DeFi’s cross-chain engagement.”
While the crypto market suffered significant losses on Friday, Solana suffered another network outage, causing alarm among traders and DeFi users around the crypto community. The Solana network has been plagued by problems in recent months, and this latest incident is the second in January. However, unlike previous instances, the recent outage lasted around 48 hours. The Solana team said that they were aware of the incident on Friday, January 21, 2022, at around 00:00 UTC.
“We are now examining a performance reduction on the mainnet-beta cluster,” the team noted. The inquiry lasted more than 24 hours until the team identified the problem at 17:55 UTC on Saturday.
According to the short notice posted on the Solana Status page, the incident was caused by bots doing “excessive duplicate transactions.” Today (Sunday), at around 16:19 UTC, the problem was rectified with the publication and acceptance of v1.8.14, which was aimed to “mitigate the issue’s worst impacts.”
“These next updates are focused at enhancing the network’s performance, with more enhancements due in the following 8-12 weeks. Numerous of features are now live on the Testnet, where they are being intensively evaluated,” the team stated. The latest Solana network outage provides another chance for developers and non-Solana fans to mock the ostensible Ethereum killer.
Another day, another 48 hour #Solana outage.
This is like the sixth time this has happened in 3 months.
I have zero faith in it now. It is the new EOS.
The fight is now between ETH, BSC, Fantom, Avalanche and Terra.
— Mark Jeffrey ⚡️🚀 (@markjeffrey) January 23, 2022
Mark Jeffery of HarperCollins feels that Solana is already out of the running for the future blockchain owing to chronic network disruptions. While the network problem has been rectified, DeFi customers on the blockchain have been forced to suffer as a result of the network’s 48-hour downtime.
Solana being down for 48 hours multiple times now makes me question the viability of a monolithic structure.
It’s clear the winning blockchain of the future will likely be one with a modular architecture.
Bullish $ETH 2.0 🚀 & Cosmos Ecosystem.
— Daniel Cheung (@HighCoinviction) January 22, 2022
The weekend Solana network failure occurred at one of the most volatile periods in the cryptocurrency market. Prices plummeted into the red, liquidation was imminent, and users scrambled to replenish their balances in order to prevent forced liquidation.
Can we all admit @solana has been down now for about ~48 hours?
Tried over 100 times to repay a Solend loan, failed.
Couldn’t even send a friend some USDC for dinner with @phantom.
It’s times like these that make you appreciate Bitcoin’s fee markets.
— Zain Allarakhia (@zallarak) January 22, 2022
Unfortunately, customers of the Solana network who borrowed money using collateralized assets such as SOL through lending platforms such as Solend were unable to recover their funds during the market crisis due to the blockchain’s congestion. Following that, a widespread liquidation occurred, leaving people to lament their losses.
We’re painfully aware of the issues in which users were unable to save themselves from being liquidated due to network congestion, and are looking into reconciliation.
— Solend 🟠 (@solendprotocol) January 23, 2022
At the time of writing, Solana is at $94.85, while Near is worth $11.35. At the time of writing, Ethereum is trading at $2,388.35.