Solana creator Anatoly Yakovenko not too long ago referred to Solana as an Ethereum layer-2 answer by way of its Wormhole eigenlayer in a put up on X.
Within the change, Yakovenko positioned the blockchain as an Ethereum layer-2 whereas responding to a tweet itemizing varied different L2 options, together with Arbitrum, Aztec, and Polygon, amongst others. He wrote:
“Solana is ethereum! Solana is an ethereum L2 by way of the wormhole eigenlayer. As soon as danksharding is scaled up nobody goes to cease you from submitting all of the solana blocks into some knowledge validating bridge contract on ethereum.”
In line with Yakovenko, the mixing of Solana with Ethereum is facilitated by the Wormhole eigenlayer, which might ultimately enable the potential for Solana blocks to be submitted right into a data-validating bridge contract on Ethereum after key scalability upgrades.
On the rise
Following a difficult begin to 2023, Solana ended the 12 months with a major upturn. December was a very energetic month for the blockchain, showcasing one of many quickest worth recoveries within the closing quarter. The entire worth locked (TVL) on Solana impressively greater than doubled, escalating from $671.62 million at first of the month to $1.529 billion by December twenty sixth.
Nonetheless, when denominated in SOL, the rise was extra modest, from 11.35 million SOL to 12.56 million SOL in the identical interval. This discrepancy displays the numerous rise in SOL worth, which climbed from $59.2 to $121.4, affecting the USD valuation of the TVL.
Notably, Solana overtook XRP in market cap, turning into the fifth-largest cryptocurrency with a market cap of $34.8 billion as of December 20, 2023, following an 11% enhance in Solana’s worth, which outpaced the broader market’s 3% achieve. The SOL/ETH ratio, evaluating Solana’s worth to Ethereum’s, additionally reveals restoration, highlighting Solana’s aggressive stance.
The SOL/ETH ratio, a metric evaluating the worth of Solana (SOL) to Ethereum (ETH), is a important measure of Solana’s aggressive place. This ratio has skilled important fluctuations, with the newest knowledge exhibiting a restoration in Solana’s standing in opposition to Ethereum.
Solana’s blockchain know-how, recognized for its excessive efficiency and scalability, is designed to assist decentralized purposes (dApps) and decentralized finance (DeFi) use instances. The platform’s success is attributed to its distinctive consensus algorithm, “Proof of Historical past,” which permits excessive transaction speeds and low charges, making it a preferred selection amongst builders for dApps and DeFi initiatives.