Bank of America foresees Solana as the Visa of the crypto world

Solana could surpass Ethereum and gain the status of the “Visa payment system for the digital asset ecosystem.” This is according to a Bank of America analysts’ report, writes CoinDesk.

The analysts arrived at such conclusions based on assessments of scalability, transaction fees, and ease of use.

Solana is comparatively better optimized for consumers in use cases such as microtransactions, DeFi, NFT, Web 3.0 and gaming. The blockchain hosts over 400 dapps.

Since its inception, the network has processed 50 billion transactions, the total value of funds locked in DeFi protocols has amounted to $11 billion, and more than 5.7 million NFTs have been issued on the blockchain. For comparison — in the last fiscal year, Visa users made 164.7 billion transactions.

Analysts also drew attention to the downtimes in Solana, citing a lower degree of decentralization and security compared with the blockchain of the second-largest cryptocurrency.

“In Ethereum [this is achieved] due to lower throughput. Blockchain congestion is observed, and transaction fees sometimes exceed the value transmitted by the network. As a result, the project can focus on large transactions and on use cases such as storage, supply chains and identification data,” the analysts wrote.

Bank of America believes that as user interest in alternative L1 networks grows, Ethereum’s dominance will decline.

Earlier, analysts from Electric Capital concluded that the ecosystems Polkadot, Solana, NEAR, BInance Smart Chain, Avalanche and Terra are growing faster than Ethereum.

Specialists from CoinGecko calculated that investments in Solana became the most profitable in 2021 among the top-30 coins.

Earlier, FTX exchange chief Sam Bankman-Fried stated that Solana has all the chances to become the next Bitcoin.

Pantera Capital’s co-chief investment officer Joey Krug predicted that in 10-20 years up to half of all transactions will go to Ethereum.

At the end of 2021, Vitalik Buterin spoke about the role of ZK-Rollups in Ethereum’s scalability and proposed a method to reduce transaction costs in L2.

In December the launch of the Kintsugi testnet occurred to test the process of transitioning to Ethereum 2.0

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