2 Cryptos to Consider Buying Long Term

KEY POINTS: CRYPTOS TO BUY LONG-TERM

• Solana leads the industry in one key area.
• Ethereum has a strong brand and an active development team.

The overall cryptocurrency market is seeing big price drops. The total market value is down 13% to $1.9 trillion so far in 2022. Some cryptos will fare better than others. For instance, cryptocurrencies Solana and Ethereum could outperform others for a few reasons.

The following is a summary reasons to check out Solana ( CRYPTO:SOL) and Ethereum ( CRYPTO:ETH).

Solana

Often called the “Ethereum killer” because of its blazing fast speeds, Solana is the ninth-largest cryptocurrency with a market cap of $31 billion. The network will capitalize on its fast performance as it expands into both FinTech and financial services.

According to a recent report from coinbase.com, Solana is able to handle 50,000 transactions per second compared with Ethereum’s 15 tps. Because of this, it is well-suited to high-transaction dApp development.

So far, Solana hosts around 500 dApps, compared to Ethereum’s 3,000. However, Solana will compete for a spot on the Ethereum network because of its technical prowess. Furthermore, Solana’s not limiting itself to dApps: it’s building and incubating its own infrastructure, too.

In February, Solana Labs, the platform’s developer, announced a new release: Solana Pay. Solana Pay allows businesses to accept cash directly from customers, using their own Solana’s coin, called SOL. Above all, this highlights both its potential for real-world use and its potential to drive fintech expansion.

Ethereum

Never underestimate the first mover advantage of a strong brand. Ethereum created a platform for dApps to be built and has proven staying power through planned upgrades, giving it an advantage over others who don’t provide these features.

New competitors are challenging Ethereum, in terms of technical specifications. This is due to its time-consuming proof-of-work (PoW) consensus mechanism, which requires miners to solve problems to authenticate transactions. To address these issues, Ethereum intends to switch from a proof-of-work (PoW) system with the goal of adopting a proof-of-stake (PoS) setup. In PoS, miners verify transactions using existing currency instead.

For now, it’s impossible to predict when the upgrades will go live on Ethereum. However, the platform has a track record of implementing adjustments, so it’s not unusual for it to implement new features.

In the meantime, the platform continues to attract dApps, with 3,000 of the roughly 4,000 dApps currently on the blockchain. In its early days, Ethereum will be a long-term success because of its strong reputation.

Multiple similar blockchains can coexist

While Solana and Ethereum compete to develop dApp, cryptocurrency is not a zero-sum game. In addition to these, there are other digital currencies. History also shows us that there’s room for many more.

For example, Ethereum improved on Bitcoin but didn’t kill it. Similarly, Solana won’t automatically kill Ethereum. Both assets look poised for long-term success because of their strong brands and active development teams. In our view, both are cryptos to buy long-term.

Originally published at https://www.mrktwire.com on March 4, 2022.