Coinbase says an Ethereum rival is emerging as major long-term Layer-1 competitor

Top US crypto exchange Coinbase says Solana (SOL) is poised to become one of the strongest tier-1 blockchain projects.

New Coinbase analysis says Solana is likely to emerge as one of the top Ethereum (ETH) rivals among the multiple layer-1 blockchains competing fiercely against each other for capital and users.

“Layer-1 blockchains are currently competing to capture as much mindshare as possible from a common, albeit growing, pool of capital and users. While the intensity of this competition may be less apparent amid an ongoing bear market, Solana has apparently captured a surprising amount of mindshare since inception, and the ecosystem is appropriately focused on strengthening their technological advantages.”

Coinbase notes that Solana suffered a setback from the FTX collapse in terms of market sentiment, but says the smart contract platform will eventually bounce back due to “the relative strength of the ecosystem.”

“Nevertheless, the fundamental value proposition of the Solana protocol persists from a technical perspective. A blockchain optimized for high throughput, minimal cost and natural scalability, Solana represents a legitimately differentiated approach within the layer-1 landscape. Given the ecosystem’s relative strength in terms of current network activity (e.g. transactions, users, development), we believe Solana is well positioned to assert itself as a true tier-1 competitor.”

Solana is worth $22.67 at the time of writing, down 14.3% from its weekly high of $26.44.

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