Solana has experienced exponential growth since it first entered the market as an alternative Layer-1 blockchain. Though the network’s market capitalization is still significantly smaller than Ethereum, its top contender, this gap has shrunk considerably over the years. 

As Solana grows, some wonder whether it will displace Ethereum as the second-largest cryptocurrency behind Bitcoin. In a conversation with BeInCrypto, Juan Pellicer, Senior Research Analyst at IntoTheBlock, said Solana still has to overcome several hurdles before that can occur. 

Solana’s Remarkable Growth

Following‬‭ Bitcoin,‬‭ Ethereum‬‭ has‬‭ solidified‬‭ its‬‭ position‬‭ as‬‭ a‬‭ leading‬‭ cryptocurrency,‬‭ pioneering‬‭ the‬‭ concept‬‭ of‬‭ smart‬‭ contracts‬‭ and‬‭ establishing‬‭ itself‬‭ as‬‭ the‬‭ dominant‬‭ platform‬‭ for‬‭ decentralized‬‭ applications.‬‭ 

However,‬‭ Ethereum’s‬‭ dominance‬‭ has‬‭ been‬‭ challenged‬‭ by‬‭ the‬‭ emergence‬‭ of‬‭ competitors‬‭ like‬‭ Solana,‬‭ which‬‭ entered‬‭ the‬‭ market‬‭ in‬‭ March‬‭ 2020‬‭ as‬‭ an‬‭ alternative‬‭ layer-1‬‭ blockchain‬‭ network.

While‬‭ Ethereum‬‭ maintains‬‭ a‬‭ significant‬‭ market‬‭ capitalization‬‭ advantage‬‭ over‬‭ Solana,‬‭ this‬‭ advantage‬‭ has‬‭ notably‬‭ shrunk‬‭ over‬‭ the‬‭ years.‬‭ 

Since its launch in March 2020, Solana’s market capitalization reached its first peak in November 2021, when it reached $72.4 billion. One week ago, the token surpassed the $100 billion mark, reaching a new all-time high. 

At the time of writing, Ethereum’s market cap is $392 billion. While i

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Author: Camila Grigera Naón