Should You Convert ETH to SOL in 2022?

Is It a Good Idea to Swap ETH for SOL in 2022?

Previous market cycles made crypto investors accumulate hundreds of ETH in their portfolios. However, analyzing the current Ethereum capitalization, it becomes obvious that the coin won’t give us that much profit again and again.

Therefore, the question is: in what coin should we rebalance part of our ETH? Today, we want to consider one of the most popular options — converting some ETH to SOL

What’s Going on with Ethereum?

Undoubtedly, the biggest occasion in the Ethereum ecosystem and in the crypto market as a whole was the Merge -— the transition to Eth2.

Ethereum 2.0 aims to improve the security and scalability of the Ethereum platform. 

With a focus on scalability, security, and a consensus mechanism, Ethereum 2.0 looks like a major and groundbreaking upgrade with its PoS switch. Transaction validators will stake crypto to validate a transaction. Depending on how much they staked and for how long, validators offer blocks. If the offers are successful, validators are then rewarded with crypto — this is called minting or forging.

Also, Buterin’s tweets from time to time reveal that the work on the network is yet to be ended. So, it seems like we’ll see a bunch of updates in the near future.

What’s Going on with Solana?

Solana as a project appeared in 2017 with the purpose of hosting decentralized and scalable applications. 

Compared to other blockchains, today Solana provides high speed and a large number of operations per minute with low fees. The project is also one of the fastest developments to date. The uniqueness of its blockchain lies in a wide range of applications and individual areas, including DeFi, GameFi, and NFT. The development is a good competition for Ethereum.

However, the blockchain isn’t ideal yet. On September 30, there was another failure in the Solana network. A misconfigured node reportedly caused Solana to stop processing transactions and go offline.

Solana has had multiple crashes and transaction failures this year, with Friday’s crash being the fourth major crash on the popular blockchain since January when it had a series of partial crashes for most of that month.

Should You Convert ETH to SOL in 2022?

Reasons to Convert ETH to SOL

Should multiple Solana crashes scare away the ETH holders or the technology is truly fundamental? 

Read Also:  Major Crypto Token Drop: $150M Released This Week

Innovative Technology

The #1 reason investors rush to their favorite anonymous cryptocurrency exchange is the innovativeness of the Solana technology.

This solution allows you to scale cryptocurrency networks, making them much faster. To work, programmers used a lot of smart technologies and a mechanism called Proof of History.

A distinctive feature of the described blockchain is a fast-growing smart contract protocol and an open-source technology.

High Scalability

Solana aims to make the process of building decentralized applications easier and more accessible. As we already mentioned, to improve scalability, the development team established a Proof of History (PoH) consensus coupled with the blockchain’s underlying Proof of Stake (PoS) consensus. 

With this next-generation hybrid consensus system, Solana becomes highly scalable. Proof of History is actually one of the important innovations that Solana has made. It provides greater scalability of the protocol, which increases its user-friendliness.

Low Fees

An important plus of Solana is the speed of operations, and this factor makes the blockchain the main competitor for Ethereum among altcoins. Ethereum’s TPS is about 13. With Solana, verification is done through token ownership using a combined consensus, which results in a small fee compared to ETH, the average fee is less than 1 cent.

The Verdict

The idea of swapping ETH for SOL isn’t unique since many investors see Solana as a real breakthrough technology. However, FUD around the blockchain often crashes, and the relatively high price compared to the one on the token sale make many experts doubt this investment.

On the other hand, we have a bunch of really working solutions on it. So, the choice is yours. Having this asset won’t be a mistake in any case.

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