Progress in the Layer-2 Sector of Ethereum and Solana
Despite the current price declines in Ethereum and Solana, the technological advancements in the Layer-2 sector show long-term potential. These developments could be of great significance to private investors and retail investors, as they significantly 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 significantly improved. While it could only process about 6 to 7 transactions per second (TPS) in 2022, the value today is over 200 TPS – an increase by a factor of 65. This means a considerable relief for the Layer-1 blockchain and enhances scalability for decentralized applications.
- Market Undervaluation: Despite these technological advancements, the Ethereum price stagnates at the 2022 level. Analysts consider this an undervaluation, as the market does not adequately reflect the fundamental improvements.
- High User Activity: Ethereum records over ten million active addresses per week, indicating consistently high usage. The near-record dominance of the Layer-2 networks suggests increasing scaling and broader use.
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 utilizes rollups to process transactions off-chain and then integrate them into the mainnet, increasing speed and reducing fees.
- Investment Interest: The presale of Solaxy has already raised over 30 million USD, demonstrating the high interest in this technology. The project offers multi-chain compatibility and could significantly improve Solana’s scalability.
- Price Pressure on Solana: Solana is currently facing price losses exacerbated by economic uncertainties and the decline of the memecoin hype. However, the introduction of Solaxy could bring new impulses for the network.
Significance for Private Investors and Retail Investors
The advancements in the Layer-2 sector offer long-term potential for investors as they improve the efficiency and scalability of blockchain networks. For private investors and retail investors, these developments could be interesting as they indicate a sustainable integration into economic processes. However, it is important to consider the risks in the cryptocurrency 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 focusing on long-term growth potential. However, it is crucial to monitor the market situation carefully and weigh the risks.