Ethereum Triple Halving author expects ETH to beat Solana scalability
|- Ongoing scalability war between Ethereum and Solana ensues.Analysts consider the SOL ecosystem inferior due to its centralization.
- Ethereum replaces USDC as the primary collateral for decentralized stablecoin DAI.
- Ethereum Triple Halving author expects further squeeze in Ethereum when price-insensitive buyers execute trades with smart contract risk.
Ethereum supply has turned deflationary, with burned ETH tokens exceeding the issuance. Analysts expect negative issuance and exploding on-chain activity to trigger the "Ethereum Triple Halving."
Solana to face tough competition when Ethereum scalability explodes
Solana's fast transaction processing and cheaper fees are driving a spike in the altcoin's adoption and utility. Analysts have noted an increase in capital inflow to Ethereum and Solana. The Solana vs. Ethereum debate is picking up steam, and the author of "Ethereum Triple Halving," Nikhil Shamapant, believes that Ethereum remains superior to Solana.
Shamapant argues that Ethereum developers and maximalists view Solana similarly to Tesla's opinion on LiDAR (light detection and ranging technology). The electric car company uses their technology for ranging and considers LiDAR expensive, redundant and unreliable.
The Ethereum Triple Halving author states,
In this case, for instance, SOL is more scalable than ETH today, but less scalable in 6 months when Zkporter comes out and even less scalable in a few years; when sharding comes out.
The analyst believes that the arrival of "sharding" and zero-knowledge tech on Ethereum is set to fuel its scalability.
In this case, for instance SOL is more scalable than ETH today, but less scalable in 6 months when Zkporter comes out and even less scalable in a few years when sharding comes out
— squishchaos.eth (@SquishChaos) November 2, 2021
In this case, for instance SOL is more scalable than ETH today, but less scalable in 6 months when Zkporter comes out and even less scalable in a few years when sharding comes out
— squishchaos.eth (@SquishChaos) November 2, 2021
Proponents have criticized Solana for its centralization, while Ethereum fights centralization at the expense of high gas fees and relatively high transaction processing time compared to SOL.
The implementation of EIP-1559, the London Hard Fork, is expected to continue squeezing Ethereum supply through burn. Over $3.17 billion worth of ETH tokens have been burned, and the altcoin turned deflationary over the past week.
Ethereum's Triple Halving, or the event of a supply squeeze that reduces ETH tokens in circulation (equivalent to three consecutive Bitcoin halvings), is drawing close as the altcoin's on-chain activity rises.
Large wallet investors that are considered insensitive to prices are executing high-value smart contract transactions. Historically high volume purchases and demand from whales have triggered massive liquidations in short-sell orders on derivatives exchanges.
An Ethereum supply squeeze is expected to set "Triple Halving" in motion and drive ETH price higher.
FXStreet analysts have evaluated ETH prices and predicted that the altcoin is expected to continue pushing higher toward $5,400.
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