Solana Could Overtake Ethereum with ETH 2.0 Flaw: FTX Co-founder

26 November 2021 | Updated: 26 November 2021

Sam Bankman-Fried, co-founder of one of the largest cryptocurrency exchanges—FTX—noted that Solana (SOL) could overtake Ethereum soon. Bankman-Fried made this assertion at his appearance in Kitco.

The FTX co-founder, the richest crypto billionaire, clarified that Ether could record a massive adoption in the institutional space even if its blockchain fails to fall short of such a feat.

Bankman-Fried also highlighted the composability issues surrounding ETH 2.0. He argued that while the upgrade would boost the network’s throughput capacity through sharding, synchronous operations could become tasking to achieve.

That said, with the possible composability problem, DeFi applications would migrate to a network with a similar shard to maintain operational order. According to Bankman-Fried, this could be where Solana overtakes Ethereum.

Solana has recorded a significantly better performance this year than Ethereum, clawing its way to become the fifth-largest cryptocurrency by market cap.

Meanwhile, the FTX co-founder got quizzed on the specific criteria people should look out for when selecting crypto projects to invest in, to which he responded that investors must monitor meme cycles.

Nonetheless, the crypto billionaire cautioned the audience about the need to understand the risks meme stocks and meme coins bring.

This year, the crypto market recorded a meteoric rise in meme coins like Dogecoin and Shiba Inu, which printed several overnight millionaires. However, meme coins like the Squid Games coin, which duped investors out of millions of dollars, have shown the apparent risks involved in investing in meme coins.

Key Solana Levels to Watch — November 26

SOL has maintained a steady downward bias since it reached its peak at $260 earlier this month. That said, the fifth-largest cryptocurrency has completed a descent to my multi-month ascending trendline around $185.

SOLUSD – 4-Hour Chart on FTX. Source: TradingView

This sustained bearish move comes amid a marketwide sell-off following a renewed COVID-19-induced FUD. While SOL appears to have touched the bottom of this downtrend, the risk of a sustained drop to the $180 – $170 axis remains unabated. However, a bullish push to the $200 round figure over the coming hours could forestall a drop to the $180 axis.

Meanwhile, my resistance levels are $200, $209, and $216, and my support levels are $182, $170, and $160.

Total Market Capitalization: $2.43 trillion

Solana Market Capitalization: $57.2 billion

Solana Dominance: 2.35%

Market Rank: #5

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.