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Solana Leads Recovery After Bank of America Endorsement

Solana led other significant cryptos in recovery after a powerful endorsement from a central U.S. investment bank.

Its price rose over 7% in the last 24 hours. For comparison, Bitcoin, Ethereum and BNB rose less than 1% in the same period.

Solana’s strong performance resulted from a powerful endorsement by a major player. Specifically, Bank of America covered Solana in a research note to its clients.

The investment bank said Solana could become the “Visa of digital asset ecosystem” and even take Ethereum’s place.

Currently, Ethereum is the oldest and the largest smart contract blockchain network. It is also the largest NFT marketplace.

However, due to its focus on scalability, Solana could put Ethereum’s position in danger, said the researchers at BoA.

Solana launched in 2020 and has seen rapid growth since. The network settled over 50 billion transactions and has an $11 billion value.

As developers optimized the Solana blockchain for decentralized finance (DeFi) use cases, the growth is not surprising. That means that Solana leads other intelligent networks in terms of cost and the speed of transactions.

Developers claim that Solana can process 65,000 transactions per second. Theoretically, this number could reach numbers up to 28.4 million. It also offers low fees or $0.00025 per transaction. For comparison, Bitcoin fees are currently at $1.8, and Ethereum’s are about $90.

The network can do that by using an innovative way to validate transactions.

While Bitcoin and Ethereum use costly proof of work validation, relying on miners to validate transactions, Solana uses a different approach. Its network uses the proof of stake (PoS) model, used by Cardano, Polygon and others. PoS allows users to stake their tokens to validate transactions. Ethereum is also transitioning to that model.

However, Solana is one step ahead, building on PoS with proof of history. By considering the time passed ...

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