Progress in the Layer-2 Field of Ethereum and Solana
Despite the recent price declines of Ethereum and Solana, the technological advancements in the Layer-2 sector show long-term potential. These developments could be significant for private investors and small investors, as they considerably improve the scalability and efficiency of the blockchain networks.
Ethereum
Layer-2 Developments in Ethereum
- Improvements in Performance: The Layer-2 infrastructure of Ethereum has substantially improved. While it could only handle about 6 to 7 transactions per second (TPS) in 2022, the figure today stands at over 200 TPS – a 65-fold increase. This means a significant relief for the Layer-1 blockchain and enhances scalability for decentralized applications.
- Market Undervaluation: Despite these technological advancements, the Ethereum price remains stagnant at 2022 levels. Analysts view this as an undervaluation, as the market does not sufficiently consider the fundamental improvements.
- High User Activity: Ethereum records over ten million active addresses per week, indicating a consistently high usage. The near-record dominance of Layer-2 networks points to increasing scaling and broader adoption.
Solana
Layer-2 Developments in Solana
- Solaxy: First Layer-2 Solution for Solana: Solaxy is the first Layer-2 solution specifically developed for the Solana Virtual Machine. It uses rollups to process transactions off-chain and then integrate them into the mainnet, increasing speed and reducing fees.
- Investment Interest: The pre-sale of Solaxy has already raised over 30 million USD, demonstrating high interest in this technology. The project offers multi-chain compatibility and could significantly enhance the scalability of Solana.
- Price Pressure on Solana: Solana is currently facing price declines, exacerbated by economic uncertainties and the drop in memecoin hype. Nonetheless, the launch of Solaxy could bring new momentum to the network.
Importance for Private Investors and Small Investors
The progress in the Layer-2 sector offers long-term potential for investors, as it improves the efficiency and scalability of blockchain networks. For private investors and small investors, these developments could be interesting as they indicate a sustainable integration into economic processes. However, it is essential to consider the risks in the crypto market and seek independent financial advice.
Conclusion
The technological advancements in the Layer-2 sector of Ethereum and Solana are significant and could lead to value appreciation in the long term. Despite the current price declines, these developments present an opportunity for investors looking to capitalize on long-term growth potential. However, it is crucial to monitor the market situation closely and weigh the risks involved.