Solana (SOL), according to Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, might become the next most prominent digital asset project.
Fried told Kitco News that Solana’s unique underlying technology for establishing decentralised finance protocols will also help boost the token’s valuation.
Solana can scale to millions of transactions per second, which is why it has the potential to become the next leading digital asset protocol, according to the billionaire. This feature gives the token an advantage in the DeFi space.
Yeah, I think that is one of the most compelling parts is that it has the potential to scale to the place where things are needing to scale if blockchain gets huge. And it has the potential to host DeFi applications for hundreds of millions to billions of people on top of it with a giant composable ecosystem. Again, that’s not saying necessarily will happen, but it could happen”
He went on to say that Avalanche (AVAX) is another blockchain network he believes has the potential to get to the top.
“I think that there are other tokens out there as well that are aiming to scale a bit, and Avalanche is one of them.”
Fried also noted that the crypto market would continue to see crashes and bull runs, but that several ventures will likely weather the storm. He added that crypto protocols and initiatives that can scale to allow for large adoption as blockchain technology advances will live the longest, whereas coins fueled by hype have plummeted the hardest.
Fried advised investors to avoid meme coins that have anonymous users and to investigate the token’s holders. He cautioned that currencies with a few persons controlling over 60% of the supply should be treated with caution.
“I think that generally, the projects that you see surviving the best are the ones that have huge loyal followings and the ones that have important use cases. I think the ones that seemed more like hype-driven often crashed the hardest. But when you look at projects that have either a lot of real adoption or is it potential for a lot of real adoption, those are projects that loyalists will be backing even during a bear market. And so I think that you’re looking at blockchains that could see huge adoption. You are looking at various exchanges and other infrastructure players are going to be key to this space going forward.”
Solana is a peer-to-peer decentralised finance (DeFi) network that has been labelled “ethereum killer” because of its faster transaction rates and lower fees than its larger competition.
Solana uses a combination of proof-of-stake (PoS) and proof-of-history (PoH) consensus techniques to improve performance and scalability.
The network can process 50,000 transactions per second with an average cost of $0.00025, making it the fastest and most cost-effective blockchain, whereas Ethereum can only handle 17,000 transactions per second at a cost of $5.80 apiece.