Five Reasons Why Solana Will Be More Profitable Than Ethereum

…even though I still prefer ETH, at least for now.

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With Solana’s massive 900% growth in 2023 comes the discussion of whether it can continue to catch up to Ethereum and present itself as a better investment than the leading smart-contracts platform.

Here are five reasons I believe Solana can continue closing this gap and take away more of Ethereum’s market share across multiple crypto sectors.

1) Many projects are migrating to Solana

Render Network, Helium, Audius and Circle (behind the USDC and EURC stablecoins) have moved away from Ethereum (or from their own network) and have instead decided to use Solana, whether in part or as a full move to the newer protocol.

This trend is becoming more popular across the space due to a push for greater decentralisation by having a project/asset operating on several blockchains simultaneously.

For example, I will note that stablecoin issuers are doing this to decentralise their operations by having their products run on multiple systems simultaneously, e.g., Tether (USDT) and its rival, Paxos (USDP).

Aave, a popular automated market maker (AMM), will soon add Solana as a compatible chain, per an Aave community vote. This will further boost SOL liquidity going through DeFi platforms.

These represent small yet important wins for Solana, which has pulled off an amazing turnaround in 12 months, where it collapsed down to the single digits (i.e., < $10). We hadn’t seen it since February 2021, the first time it exceeded this price point.

To put things into perspective, SOL has been on a rollercoaster ride since launching in April 2020.

— 11 April 2020: ~$0.95
— 1 January 2021: ~$1.70
— 6 November 2021: $260 (its all-time high)
— 1 January 2022: $170
— 1 January 2023: $10
— 1 January 2024: $101

Source: CoinMarketCap

Hats off to anyone who has held on the entire time, and a special mention to those who loaded your SOL bags while people were panic selling in December 2022.

SOL generated 900% ROI last year instead of ETH’s modest 80%. The former’s significantly lower market cap still makes it plausible to see it outperforming the second-largest digital asset for…