In the crypto world, Solana (SOL) and Ethereum (ETH) are two of the most popular crypto coins that have found use cases across the board. While both projects share many similarities, there are still major differences between them. Understanding the key differences between SOL and ETH can help investors and traders make informed decisions to maximise their investments. But what factors should one take into consideration when doing a Solana vs Ethereum analysis? Here, we deep dive into the key aspects that differentiate SOL from ETH and vice versa.
About Solana
Solana, or SOL, was created by software developer Anatoly Yakovenko, who first proposed the project in 2017 and finally launched it in 2020. The coin takes inspiration from Etherum and was eventually created to improve upon Etherum. Many crypto enthusiasts and experts considered Solana a potential ‘Ethereum killer.’
Solana emerged as a new-generation crypto coin that addressed several shortcomings of popular tokens launched before it. The coin’s transactions are conducted on the Solana blockchain, which uses a proof-of-history consensus mechanism instead of a proof-of-work mechanism used by popular initial coins like Bitcoin.
In layman’s terms, the proof-of-work mechanism depends on miners to unearth the next block and is slow and has a high energy demand. In comparison, the proof-of-history consensus mechanism is fast and requires 99.9% less energy. This is one of the main reasons why Solana took on the likes of Bitcoin and Ethereum right from the beginning.
About Ethereum
Ethereum, or ETH, which was first proposed by Vitalik Buterin in his white paper in 2013, was finally launched in 2015. Buterin was joined by Gavin Wood, Charles Hoskinson, Amir Chetrit, Anthony Di Iorio, Jeffrey Wilcke, Joseph Lubin, and Mihai Alisie, who further developed and popularised the project its way to the second-largest blockchain project in the world, only behind Bitcoin.
ETH is the native currency of Ethereum, a decentralized blockchain that offers smart contract functionality. However, the project was also plagued with issues related to proof-of-work until September 2022, when it shifted to a proof-of-stake mechanism. The move helped it become more fast and reduced its energy needs by over 99%, making it more efficient.
Solana Vs. Ethereum : An Overview
Solana and Ethereum are two of the most widely used crypto tokens globally. But to better understand how these two crypto coins are pitting against each other, we have taken several factors into consideration to provide you with a detailed snapshot.
Google Trends: Solana Vs Ethereum
Google Trends is one of the key metrics to determine the interest of crypto enthusiasts in particular coins. In the ongoing month of October, Solana clearly has the edge over Ethereum in terms of search volumes and interest of the global crypto community.
Caption: Interest over time of Solana and Ethereum {Solana (Blue); Ethereum (Red)}
Active Addresses: Solana Vs. Ethereum
Active Addresses is another important metric that can give you an insight into the adoption of a coin. In simple terms, an active address is a crypto address that has become a direct participant in a successful transaction. It can be either the sender’s or receiver’s address.
Active Addresses Solana
Solana’s active addresses, which peaked at around 39.64 million in April 2022, are nowhere close to its days of glory. However, the token has witnessed a decent rise in active addresses in the last 30 days. In October 2023, active addresses on Solana stood at 5.33 million as of 28 October.
Active Addresses Ethereum
There’s no doubt that Ethereum is a more popular crypto coin than Solana. Therefore, naturally, the former has a more stable number of active addresses than the latter. In October, Ethereum’s number of active addresses was 10.35 million as of 28 October.
Monthly Transactions (Solana & Ethereum)
Monthly transactions in crypto refer to the buying, selling, and exchanging of digital currencies within a given month. Comparing Ethereum and Solana’s monthly transactions will help you understand which coin is being preferred for transactions by crypto enthusiasts.
Solana Monthly Transactions
Non-vote Solana transactions peaked in November 2021 at 1.5 billion. The last time it was near the 1 billion mark was in July 2022. The number of non-vote transactions has kept fluctuating since then. In October, the number of non-vote transactions showed improvement. As of 28 October, the number of non-vote transactions was up at 550.4 million from 494.7 million in September and 519.83 million in August 2023.
Ethereum Monthly Transactions
In terms of monthly transactions, Ethereum made a record in May 2021, when the token was involved in 20.27 transactions. While ETH’s number of transactions has fallen since then, it has remained stable in the range of 12 million to 17 million. However, in October, the number of Ethereum-based transactions could see a serious fall as it stands at 10.35 million as of 28 October.
Also Read : Shiba Inu Vs Dogecoin : A Deep Dive Into The Ecosystem
Price Chart: Solana Vs Ethereum
The price chart of a cryptocurrency represents its historical price movements. These charts can help crypto investors and traders predict the future movements of the tokens by analysing the trends closely. Analysing and comparing Solana and Ethereum price charts can provide key insights that can help in making informed decisions.
Market Cap: Solana Vs Ethereum
The market cap of cryptocurrencies gives an indication of the coin’s value and size. Ethereum, being the more popular crypto coin, clearly has a higher market cap at $215 billion while Solana has a market cap of $13.4 billion. On the other hand, Ethereum’s circulating supply at present stands at 120.2 million and that of Solana’s is at 419.2 million.
Conclusion : Which coin is more popular ?
Ethereum and Solana are two of the most popular cryptocurrencies in today’s time. Both the coins have found several use cases, and are witnessing an increased adoption in multiple areas. At present, with a larger market cap and higher active addresses, it’s clear that Ethereum is finding more traction among crypto users. However, Solana, which faced a massive setback after its links with FTX were found, is gaining the lost ground, and could soon again give a tough competition to Ethereum. In all likelihood, it’s going to be more interesting from here. Stay tuned!