Looking for Alternatives to Solana Explore These 2 Promising Competitors for SOL in 2024
Solana (SOL) has emerged as a strong competitor to Ethereum (ETH) in the world of Web3 and decentralized finance (DeFi). Its network scalability and transaction efficiency have attracted both retail and institutional interest, leading to its impressive performance in the crypto market. However, there are two other promising competitors to Solana that investors should keep an eye on in the second half of 2024.
These competitors are MultiversX (EGLD) and Radix (XRD), both of which focus on scaling through a technique called sharding. Sharding is a method used by many large systems to handle high loads of data efficiently. Both EGLD and XRD have built highly scalable, efficient, decentralized, and secure tech stacks.
The concept of sharding was mentioned by Ethereum’s creator, Vitalik Buterin, as a way to make blockchains more efficient. It involves splitting the blockchain into smaller parts called shards, which can process transactions independently, resulting in higher throughput. Radix creator Dan Hughes also supports the idea of sharding and has written about its benefits in his essay titled “Why Sharding?”
Both MultiversX and Radix have developed asset-oriented models for their tokens, which provide enhanced security compared to the Ethereum Virtual Machine (EVM) model. In the EVM model, tokens are created through smart contracts, which can lead to security vulnerabilities. In contrast, asset-oriented blockchains treat tokens as the native token itself, eliminating the need for special authorizations and reducing the risk of security breaches.
MultiversX has fully implemented all three types of sharding in its production network, allowing it to scale according to demand. Each shard in MultiversX has a theoretical capacity of 10,000 transactions per second (TPS), and the network currently operates with three shards. The token eGold (EGLD) is currently trading at $28.53, suggesting it may be oversold, and it has a market cap of $775 million.
On the other hand, Radix is still testing its sharding implementation but has shown promising results. The project also emphasizes atomic composability, which allows for seamless user experiences across different shards. Recent tests conducted by Dan Hughes indicate that Radix will be able to handle over 200,000 swaps per second. The token XRD is currently priced at $0.29, below its ICO price, and has a market cap of $300 million.
Despite their promising technology, both EGLD and XRD come with risks, and investors should exercise caution and conduct thorough research before making any financial decisions. These low-cap cryptocurrencies have the potential for negative performance, so it is important to approach them with care.
Disclaimer: The information provided in this article should not be considered investment advice. Investing in cryptocurrencies carries risks, and investors should be aware that their capital is at risk.