Why Solana (SOL) Could Surprise

By Bfab | Good vibes | 27 Jun 2022

There is so much FUD (Fear, Uncertainty and Doubt) about Solana (SOL) that it is quite surprising that the value has not yet crashed to $1 or lower.

Looking at Solana (SOL) vs. Ethereum (ETH) over 30 days, it is even the contrary: SOL has outperformed ETH in the last 14 days by more than 50%:

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Over 1 year, SOL has outperformed ETH by more than 98%. SOL also outperformed Bitcoin (BTC) over the same period, as well as Binance Coin (BNB)...

So, why all this FUD?

The Solend story provides a possible explanation: everyone has focused on the lack of decentralization of that lending protocol, whereas on Ethereum a large portion of the staking is done through Lido with stETH, which recently depegged from ETH... By taking these "centralized" decisions, Solend has avoided a crash similar to the one experienced by Celsius who got heavily affected by stETH depegging, after having been hurt by UST/LUNA crash.

Therefore, it seems that Solend "centralized" decisions are used as the tree to hide the forest. But in reality, this tactic does not work:

1) Solana is not more responsible of Solend decisions than Ether is responsible of Lido's stETH depegging which is leading Celsius to bankruptcy.

2) Solana allows to stake SOL (whatever the amount) to validators (1798...) in a decentralized way whereas we are still waiting for ETH 2.0 merge...

3) Solana multiple network outages have never led to any loss of funds, and might soon be fixed - e.g., by slightly increasing the transaction fees.

Furthermore, some applications such as STEPN, which have quickly been adopted by many people, are successfully using Solana, without any problem. Could you imagine such an application on Ethereum mainnet? If finally you have to build it on Polygon, then it will be less decentralized than Solana... And if you finally make it on a layer-2 chain like Arbitrum, some network outages might happen too... They are just less broadcasted than on Solana.

In summary

Beware of the FUD. Do Your Own Research. Solana is one of the biggest competitors of Ethereum. So it is quite normal that it gets criticized. Please note: it is not a financial advice.

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