There is no doubt that Solana (SOL) is one of the cryptos most affected by the FTX meltdown. ETH’s competitor, Sam Bankman-Fried’s (SBF) companies, experienced a large decrease in market capitalization shortly after the announcement of their insolvency.
Why did that happen?
SBF has always supported the altcoin. As a result, his ventures made significant investments not only in Solana but also in cryptocurrency tokens. SBF, for example, acquired €1.2 billion in SOL tokens through Alameda. Furthermore, the trading firm allegedly owned €1.15 billion in Solana and was accused of selling its altcoin holdings in order to prevent the crash of FTT, FTX’s token.
Differences between Cardano and Solana
While both are platforms designed to improve the smart contracts space, there are some differences between Cardano and Solana. Solana was created to make it easier to create decentralized applications (dApps). As a result, it was designed to improve scalability by combining a proof-of-history (PoH) consensus with a proof-of-stake (PoS) consensus.
Cardano, on the other hand, was designed to be a payment alternative in areas where access to the banking system is extremely limited. Aside from being a smart contract platform with low fees and quick transactions, the altcoin is notable for its research-based development and offering staking that does not lock users’ ADA.
What is the best “Ethereum Killer?”
The debate over Solana(SOL) and Cardano’s potential to overtake ETH is not new. However, for both altcoins, that reality is still a long way off. Ethereum remains the market leader in smart contracts, with significantly higher NFT volume and total blocked value (TVL) in DeFi than its competitors. In this sense, it is possible to say that, before competing directly with ETH, the major altcoins on the market compete with each other. According to DeFi Llama data, Solana’s TVL dropped 54% between November 8 and November 21. Cardano’s, on the other hand, fell 22% during the same time period.