Solana vs. Bitcoin vs. Ethereum: How Do They Compare?

Erik NorlandBy Erik Norland

At a Glance

Solana, a blockchain platform, offers high-speed, low-cost transactions and supports various decentralized applications

The prices of SOL (the cryptocurrency built on the Solana blockchain) have been more volatile compared to bitcoin and ether, with realized volatility of around 80% over the past three months

As the crypto market continues to evolve, Solana is emerging as a formidable player. But what should every crypto investor know about the economics of Solana, and how does it differ from its more established counterparts?

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Solana’s Price Performance Outshines Bitcoin and Ether

Solana helps to support the lending, borrowing and trading platforms of decentralized finance, non-fungible token marketplaces as well as gaming and Web3 apps. While Ethereum remains the dominant smart contract platform, Solana focuses on high-speed, low-cost transactions and real-time applications.

Bitcoin, by contrast, doesn’t have specific use cases beyond being a store of value and a unit of exchange. For most of the past year and a half, SOL prices outperformed those of bitcoin and ether. That said, all three sold off sharply in late February and early March with SOL leading the way down.