Cryptocurrency

Anatoly Yakovenko says ‘Solana is Ethereum’ in layer-2 scalability debate

Solana creator Anatoly Yakovenko recently referred to Solana as an Ethereum layer-2 solution through its Wormhole eigenlayer in a post on X.

In the exchange, Yakovenko positioned the blockchain as an Ethereum layer-2 while responding to a tweet listing various other L2 solutions, including Arbitrum, Aztec, and Polygon, among others. He wrote:

“Solana is ethereum! Solana is an ethereum L2 through the wormhole eigenlayer. Once danksharding is scaled up no one is going to stop you from submitting all the solana blocks into some data validating bridge contract on ethereum.”

According to Yakovenko, the integration of Solana with Ethereum is facilitated by the Wormhole eigenlayer, which would eventually allow the potential for Solana blocks to be submitted into a data-validating bridge contract on Ethereum after key scalability upgrades.

On the rise

Following a challenging start to 2023, Solana ended the year with a significant upturn. December was a particularly active month for the blockchain, showcasing one of the quickest price recoveries in the final quarter. The total value locked (TVL) on Solana impressively more than doubled, escalating from $671.62 million at the beginning of the month to $1.529 billion by December 26th.

However, when denominated in SOL, the increase was more modest, from 11.35 million SOL to 12.56 million SOL in the same period. This discrepancy reflects the significant rise in SOL price, which climbed from $59.2 to $121.4, affecting the USD valuation of the TVL.

Notably, Solana overtook XRP in market cap, becoming the fifth-largest cryptocurrency with a market cap of $34.8 billion as of December 20, 2023, following an 11% increase in Solana’s value, which outpaced the broader market’s 3% gain. The SOL/ETH ratio, comparing Solana’s value to Ethereum’s, also shows recovery, highlighting Solana’s competitive stance.

The SOL/ETH ratio, a metric comparing the value of Solana (SOL) to Ethereum (ETH), is a critical measure of Solana’s competitive position. This ratio has experienced significant fluctuations, with the most recent data showing a recovery in Solana’s standing against Ethereum.

Solana’s blockchain technology, known for its high performance and scalability, is designed to support decentralized applications (dApps) and decentralized finance (DeFi) use cases. The platform’s success is attributed to its unique consensus algorithm, “Proof of History,” which enables high transaction speeds and low fees, making it a popular choice among developers for dApps and DeFi projects.

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