Ethereum prospects look much better in 2022
Solana (SOL) and Ethereum (ETH) both performed well in 2021. Solana closed the year with gains of 10,000%, while Ethereum was close to 1000% by the end of the year.
While both are in a correction at the moment, the chances are that they will turn around at some point in the year.
Why Ethereum wins
Comparatively, there is a good chance that Ethereum could outperform Solana in gains this year. Several factors support such a possibility. For starters, Solana’s image has taken a massive hit over the last 6 to 7 months.
That’s because of its frequent network outages that have put to question its network decentralisation. Unlike in 2021 when there was a lot of optimism around it, Solana may struggle to sustain its 2021 momentum in 2022.
On its part, Ethereum has a lot going for it this year. One of them is that with the issues Solana is facing, Ethereum has got an image boost. This could see it draw in more Dapps all through the year.
At the same time, Ethereum is close to the completion of its transition to Ethereum 2.0. The journey to shift from Proof-of-Work to Proof-of-Stake started in 2020. And a lot has been done towards it, and many of them are quite revolutionary.
For instance, the London fork that took place on August 5, 2020, made Ethereum deflationary. This is a big deal because it means, as Ethereum grows in adoption, more Ether is burned. If the history of other deflationary cryptos like BNB is anything to go by, this is a factor that could see Ethereum perform very well once the market turns bullish again.
At the same time, Ethereum 2.0 is getting rid of most of the problems that Ethereum has been battling for years, the key among them being scalability. This could unlock adoption, and the same will reflect in the price of ETH.