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Investor Calls Solana Crash to $26 as Ethereum Fees Crash
In Brief
- • An investor has predicted Solana could fall to $26 within a year, citing sharp drop in Ethereum fees.
- • However, Ethereum and Solana have proven to be different networks with different strengths.
- • Moreover, Solana’s growing real-world adoption may counter expectations of a severe price drop.
A crypto investor has made a daring prediction, calling Solana’s crash to $26 citing the crash in Ethereum fees. He made the prediction while citing low gas fees from transactions which he or someone else carried out, but is this enough?
The investor said Solana will crash to this $26 price within 12 months, adding that it’ll be his next entry point. He has been criticized for this tweet by his followers who don’t believe his expectations are within reason.
Ethereum’s Fees Challenge and Solana’s Solution
Solana has been referred to as the Ethereum killer because it was created as an alternative network to Ethereum when congestion and high gas fees plagued the Ethereum network. One time, a user of the network paid $430,000 in fees for a transaction, and this is just one of many cases.
The Solana team launched their own network to correct everything that was wrong with Ethereum — high fees, scalability issues, etc, and the network has succeeded for a while, being able to finalize transactions within seconds. While most people compare the two networks in black and white, some people may think otherwise.
For example, this analysis of both networks concludes that the two are quite different from each other and which one a user goes for depends on their needs. Ethereum is highly secure with deep liquidity for DeFi, while Solana is a highly scalable option that is ideal for memecoin investors and each network has established its own reputation.
Solana Carving a Niche for Itself
Apart from the sheer difference between the two networks, Solana has been carving a niche for itself that may keep it afloat no matter how low Ethereum fees go.
Western Union recently chose it for building its blockchain infrastructure against Ripple, a rival network known for lightning fast transactions. With such a reputation, it may be difficult for the token to crash to the $26 price the bear is anticipating based on Ethereum fees alone.
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