Solana Could Become The “Visa Of The Digital Asset Ecosystem”: Bank Of America
The Solana blockchain could become the Visa of the digital asset world with its focus on ease of use, scalability, and low transaction fees, according to a Bank of America research note after it hosted Solana foundation member Lily Liu.
The Solana ecosystem has processed over USD 50 billion transactions and has more than USD 11 billion in TVL (total value locked). Approximately 5.7 million non-fungible tokens (NFTs) were also minted on the Solana blockchain. Visa, by comparison, settled 164.7 billion transactions in the year ended Sept. 30.
In the research note published on Tuesday, Bank of America global crypto and digital asset strategist Alkesh Shah wrote that Solana is optimised for consumer use cases such as micropayments, decentralised finance (DeFi), NFTs, and gaming.
“Solana prioritises scalability, but a relatively less decentralised and secure blockchain has trade-offs, illustrated by several network performance issues since inception,” Shah wrote. “Ethereum prioritises decentralisation and security, but at the expense of scalability, which has led to periods of network congestion and transaction fees that are occasionally larger than the value of the transaction being sent.”
He added that Ethereum could instead be used for “high-value transactions and identity, storage and supply chain use cases”.
Shah also mentioned that Avalanche, a blockchain that “attempts to find a middle ground” between Ethereum-level security and Solana-level scalability, could be an optimal network for DeFi and enterprises.