Major US Bank, Bank of America (BoA) compared Solana blockchain to the world’s largest credit card network, Visa.
In a research note published Tuesday, BoA research analyst, Alkesh Shah expressed optimism for the top smart contract platform over its ‘scalability, low transaction fees, and ease of use,’ going ahead to add:
“Solana could become the Visa of the digital asset ecosystem.”
Shah believes Solana even has the potential to take over Ethereum by distinguishing itself through ‘user adoption and developer interest.’ Ethereum, meanwhile, could become the blockchain for ‘high-value transactions and identity, storage and supply chain use cases,’ while Solana grows itself as a settlement layer.
Since its launch in 2020, Solana has settled over 50 billion transactions, has more than $11 billion in total value locked, and has been used to mint over 5 million non-fungible tokens (NFTs). Visa, on the other hand, processed 164.7 billion transactions on Sept. 30, 2021.
When comparing the transactions per second (TPS) on blockchain networks to those performed on credit card networks, Visa can theoretically handle at least 24,000 TPS but averages around 1,700 while the TPS for Ethereum stands at 15. In comparison, Solana overtakes both Ethereum and Visa with a theoretical limit of 65,000 TPS.
Bank of America further stated that Solana and other alternative blockchains could even grab the market share from Ethereum over time. Currently, Ethereum has a market cap of $402 billion, which is more than eight times greater than Solana’s market cap.
According to CoinMarketCap, SOL is currently the fifth-largest cryptocurrency with a market capitalization of $47 billion.