Bank of America Analyst Think Solana can be “the Visa of crypto”

Back when Solana was first conceived, its goal was to bring a potential solution for the lack of scalability and high fees in crypto that came as a consequence of the scalability issues. The project’s approach was a success, and more importantly, it emerged at just the right time to provide an alternative to Ethereum users who have decided that Ether’s massive fees are no longer tolerable.

With its advanced technology, Solana became one of a handful of go-to alternatives, and its potential is now noticeable even among those from outside of the crypto industry.

One example is Alkesh Shah — an analyst working at Bank of America, who did not only predict that Solana will continue to grow and steal Ethereum’s market share, but also that it has the potential to become “the Visa” of crypto. The Bank of America analyst noted that Solana is very easy to use, and that it has significantly lower transaction fees, which makes it attractive to investors, developers, institutions, and others.

So far, Solana has confirmed this kind of belief in its future. Over the past 12 months, it became one of the top-performing crypto projects, and its native token SOL saw a 4,300% surge in value in a single year. Right now, the token is the fifth-largest digital asset in the industry, featuring a market cap of $50 billion.

However, many have predicted that SOL could soon go up to new heights, including Shah, who argued that Solana is superior to its rivals. The project has a different design that is so much better that it could allow it to take away a sizable portion of the market share from Ethereum. Especially since Ethereum still didn’t switch to PoS. In terms of power and possibilities, Solana can process 65,000 TPS with an average transaction fee of $0.00025.

Solana vs Ethereum

Ethereum is capable of processing 13 TPS with an average fee varying anywhere from $3 to $6, and sometimes higher. In October 2021, it was over $15. Before that, in September, it climbed to over $20 on two occasions, once even hitting $25. Meanwhile, back in May 2021, it went so high that it hit $71.72 per transaction. This was the highest that it ever got, but that doesn’t change the fact that these fees are ridiculously high and that they cannot be compared to what Solana has to offer.

As a result, the analyst said that Solana could someday become the Visa of crypto, while Sam Bankman-Fried, the founder of FTX exchange, went even further than that, stating that Solana could become the next Bitcoin. Not only does it offer an impressive speed of scaling, but it is also green-focused, while Bitcoin’s massive carbon footprint has caused a lot of trouble for the coin in the past.

Tesla, for example, decided to drop Bitcoin payments in May 2021 because of it. Some suspect that this move caused a crypto market crash on May 11th that cut the crypto prices in half. Meanwhile, Solana’s transactions consume 24 times less energy than charging a mobile phone.

To learn more about this token visit our Investing in Solana guide.