A mixed picture is emerging in the crypto market. However, Solana continues to benefit from Ethereum’s problems on the fee front.
Slowly, the markets are settling back in and some are wondering where the journey is headed. The omens this Friday, September 10, are positive. Bitcoin, for example, is scratching the $47,000 mark again at $46,691 and is up one percent on the day.
Ether, on the other hand, has not yet managed to break out of its downtrend. On the day, the cryptocurrency is down 1.5 percent. The price at the time of writing: 3,456 US dollars.
Despite all this, the market as a whole is not yet ready to go into a tailspin. At 2.22 trillion US dollars, the overall market is trading around one percent above yesterday’s level. So even after Tuesday’s flash crash, the bulls have not yet completely cleared the field.
Looking at the altcoins, the picture is mixed. While Binance Coin (BNB) recently regained ground and is up 3.5 percent, Solana, for once, has lost a little ground. The shooting star among the altcoins had to endure profit-taking today, Friday, and is trading down 7.4 percent. No wonder, because on a weekly basis Solana was able to beat the general bear trend and is still trading – measured on seven days – a respectable 49 percent up. Not only that, but instead of starting a disorderly retreat like Bitcoin and its ilk, the Ethereum competitor even managed to hit a new all-time high on the street yesterday (Thursday).
At press time, one unit of the proof-of-stake coin can be had for $189.
Ethereum overwhelmed, Solana fills gap
Meanwhile, the fact that Solana has been churning out one high after another for some time now is likely due in no small part to the inability of its competition. Ethereum, for example, seems barely able to cope with the onslaught of NFT and DeFi enthusiasts. Finally, the smart-contract platform’s fees have recently returned to orbit. On average, it costs around $10 to get a tradable ETH transfer over the line; the median gas price as of press time is around 150 gwei.
However, and to be fair, Ethereum is still undoubtedly the most widely used smart contract platform around these days. With 153.33 billion U.S dollars, the “total value locked”, i.e. the accumulated sum of assets secured in DeFi protocols, exceeds Solana’s by a multiple. In comparison, Solana brings it to a paltry nine billion US dollars. It is therefore hardly surprising that the fees are smaller with lower utilisation.