Solana And Cardano May Challenge Ethereum

Solana and Cardano may challenge Ethereum. Bitcoin's rise was unbelievable, creating a buying spree, going from five cents per unit in 2010 to nearly $70,000 in 2021. In 2021, the value of Bitcoin rose 57.81%.

Ethereum's value increased by 391.75% in 2021. Ethereum's flexible platform has introduced support for many new cryptos, which has resulted in improved performance. Solana and Cardano are in the top ten with market capitalizations higher than 99.9% of the rest of the asset class. In 2021, the market capitalization of the cryptocurrency asset class increased by 182.18% on December 31, from $767,482 billion at the end of 2020 to $2,166 trillion. High-profile support from Elon Musk and Jack Dorsey has glorified the crypto's profile. Even some top athletes and celebrities have requested payment in cryptocurrencies in 2021. After hitting around $70,000 in mid-November, Bitcoin was trading below the $43,000 level on January 11th. Ethereum peaked around $4,900 on November 10, but was below $3,250 at the start of 2022. Cryptos have become more common investment vehicles and market participants have begun to diversify their portfolios to include cryptocurrencies. Faith in fiat currencies is waning, making cryptocurrencies a viable alternative.

Solana (SOL)

At $151.25 per token, SOL had a market cap of $47.40 billion. Solana is a public blockchain platform that uses the proof-of-stake mechanism. Proof-of-stake protocols are a class of consensus mechanisms for blockchains that select validators in proportion to the amount and duration of their holdings in a cryptocurrency. Proof of work, Bitcoin's mechanism is energy-intensive, but Proof of Stake requires much less computation and less power, making it a more environmentally friendly protocol. Solana is a potential competitor to Ethereum as it offers faster transaction speeds and lowers associated costs.

Cardano (ADA)

Cardano is an open source and decentralized public blockchain platform with a proof-of-stake protocol. Cardano has been on the market since 2015. ADA was the seventh leading cryptocurrency on January 13. At $1.30 per token, its market cap was $43.45 billion. SOL and ADA are cryptocurrencies with a market cap of $40 billion and offer liquidity for investors. Adopting a greener path for the environment, the proof-of-stake protocol will likely be a bonus for the cryptocurrency asset class. However, bullish and bearish conditions for the asset class will determine the path where prices show least resistance in 2022.     Source: Investing.com