‘Bitcoin maxis’ like Solana, but is there any good logic in this

Recent changes in the dynamics of the cryptocurrency market have fueled the popularity of altcoins like Solana [SOL]. It has recently become one of the hottest blockchain platforms thanks to its rising price.

The cryptocurrency, in fact, has had a 1-year ROI of over 4,200%, despite falling 34% from its peak in early September. Despite the latest value setback, however, market watchers believe the project has managed to “earn a significant amount of Bitcoin Maxis or near-max.”

Travis Kling of Ikigai Funds made this observation on Twitter when he noted,

“After talking to a bunch of people over the past couple of months, it’s pretty clear that SOL is successfully earning a significant number of BTC Maxis or quasi-maxis, which previously had no ETH or very little ETH. “

While the crypto-space is competitive, the technological twist of the age-old saying – “competition from your competition is your ally” is also true. Solana is not in competition with Bitcoin. Instead, it competes with Ethereum’s position in decentralized finance, NFTs, and smart contract offerings. Since trading on Ethereum is always painful for some users, Solana’s fast and cheap trading offers a better alternative for many.

Solana’s DeFi projects recently surpassed $ 3 billion, although Ethereum hosts the maximum number of DeFi and NFT projects. While Bitcoin ‘maxi’ are also opting for smart contracts, they prefer SOL over ETH, according to Kling.

Why? According to executive,

“I think maxis look at ETH vs SOL and think –

Until it’s so decentralized, you might as well have a smart contract platform that can actually handle enough throughput with low enough fees where it can really scale, instead of choking like ETH.

However, not everyone agrees with Kling’s views. Many believe the decentralization narrative is misused by Kling, with another Twitter user @ mikemcg0 noting that Ethereum is “more decentralized than BTC.” Anyone can run an Ethereum validator, ”he said,“ but only a few select oligopolies can mine BTC. “

Despite this, Bitcoin mining has spread further after the recent crackdown in China. Although the process is long in terms of effort, time and money, according to another user, “Anyone can ‘mine BTC’ if they have an entrepreneurial spirit.”

However, the last failure encountered by Solana raised questions about the level of centralization. However, that hasn’t really deterred those who want to indulge in DeFi, NFT, and smart contracts. As Solana signs new contracts with Hacken Foundation and Gate.io, other institutions like Osprey Funds and Grayscale are in a race to include Solana in their respective product mix.

In fact, Osprey Funds has already registered Osprey Solana Trust with the SEC.

‘Ethereum killer’ or not, Solana is poised to generate more interest in the burgeoning crypto market. Even turning the so-called BTC maxis in the process.

About Jimmie T.

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