Strong and positive signals are stemming from the market of derivatives, investments from the institutional sector, and the gradual growth of the crypto-economy which suggests that SOLANA will be giving a tough time to leading cryptocurrencies in 2022.
The Crypto smart contract feature is one of the most advanced and popular features in the crypto market. It is currently overwhelmingly dominated by the two top cryptocurrencies of the entire world i.e. Bitcoin and Ethereum. Both of them were utilizing this feature in the majority but now they have a competitor. The competitor is SOLANA (SOL) which has transformed itself into a contender against Ethereum and Bitcoin in terms of smart contracts.
For two years i.e. 2020 and 2021, SOL topped in the sector of smart contracts. Its total value locked (TVL) is presently above US$ 11 Billion of which US$ 660 Million has come only in 2020 and 2021. There are more than 40 applications of decentralized nature on which SOL is working simultaneously.
However, overall SOL’s market capitalization is still almost to none as compared to Bitcoin and Ethereum. For instance, SOL’s present market cap is over and above US$ 56 Billion. On the contrary, Bitcoin’s market capitalization is nearing US$ 1 Trillion, and if the value hadn’t dropped it would have been over US$ 1 Trillion. As a matter of fact since May 2021, at least thrice, Bitcoin saw its market capital going past US$ 1 Trillion. But because of the market crashes, the market capital continues to fluctuate sometimes below and sometimes above the US$ 1 Trillion.
In addition, Ehtereum’s market capital too is far superior to that of SOL. Currently, Ethereum’s market capitalization is over US$ 400 Billion, which is slightly higher than half of Bitcoin’s market capitalization. If a comparison is made for determining the difference between the market caps of SOL and Ethereum, then SOL is falling short of US$ 400 Billion approximately. Because of SOL’s low market cap, there are investors who raise doubts over SOL as a contender to Ethereum and Bitcoin.
According to investors, SOL has no match with either of the two world’s leading coins. They suggest instead that SOL’s competition, if any, is with Polygon and BNB.