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Solana Executive Tips Network Scalability
Solana co-founder shares his views with the cryptocurrency community on the scalability differences between blockchain and its rival Ethereum. In a recent post on X (formerly Twitter), Anatoly wrote that price discovery is not the best thing for Solana when global resources are saturated. Blockchains handle congestion, but increased usage can lead to congestion.
“I think the fundamental difference between Solana's vision and Ethereum's is that for Solana, price discovery is bad when global resources are saturated. Although this is a good way to handle congestion, it essentially requires the hardware to scale up to meet new demands. If the software doesn't allow validators to add hardware to meet new demands, it's a software bug. ”
Crypto Enthusiast explained on X that Ethereum is constrained to hardware/bandwidth labels below the decentralization level. Last year, Solana suffered from downtime due to several factors. This remains a major issue, slowing down pricing development despite mass adoption of the product by institutional customers. On February 6th, the network went down due to a bug that caused a finite loop error.
Solana prices skyrocket
Solana has emerged as a favorite in a community known as ETH killers. Despite massive institutional adoption and buzz, Solana was unable to arrest rapid price growth like Ethereum. First, the number of smart contracts on the network continues to outpace competitors.
 Additionally, DeFi platforms on Ethereum are gaining traction following the approval of crypto ETFs. Recently, traditional companies filed for the Spot Solana ETF, sparking optimism in the market. Solana's fund saw a flurry of inflows last year, and the level of institutional investors attracted to Solana soared. However, these wins failed to boost asset prices as holders braced for the possible launch of spot ETFs.
