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Sujit Kumar
Oct 19, 2024

Solana Founder Highlights Scalability Over Fees as Key to Growth

Anatoly Yakovenko
Anatoly Yakovenko, the founder of Solana, recently shared his views on blockchain scalability, emphasizing the importance of hardware improvements over transaction fees. In a post on X, Yakovenko highlighted a key distinction between Solana and Ethereum’s approach to handling network congestion. While Ethereum relies on price discovery—raising fees to manage congestion—Solana focuses on scaling hardware to meet increasing demand.

Yakovenko believes that when global resources are saturated, increasing fees is not a sustainable solution. Instead, he advocates for software that allows validators to upgrade their hardware to handle more traffic. Only local contention, where resources can’t be scaled up, should trigger higher user fees, he explained.

Solana vs. Ethereum: Market Rivalry

Ethereum's recent price surge has led to a decline in the SOL/ETH pair, highlighting Solana's underperformance compared to Ethereum. Despite Solana's strong growth, Ethereum continues to dominate the market. According to CryptoQuant’s CEO, Ki Young Ju, Ethereum is losing some market share to Solana, but ETH's dominance still overshadows competing Layer-1 chains.

A report by VanEck, published on September 25, predicts Solana could surge to $330, potentially reaching 50% of Ethereum's market capitalization. The report credits Solana’s faster transaction speeds, lower fees, and higher daily active users as drivers for its potential growth.

Bullish Indicators for Solana

Solana’s price currently sits at $153.84, facing resistance at the $155 level. Recent data from CoinGlass shows a 24.88% increase in trading volume, indicating rising confidence in SOL. The Long/Short ratio of 0.9685 suggests traders remain optimistic about Solana’s short-term outlook.

Despite a minor 1% drop in Open Interest, Solana's strong ecosystem and upcoming Firedancer mainnet launch in 2025 position it for long-term growth.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Solana Founder Highlights Scalability Over Fees as Key to Growth
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

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