Ending 2021 with a market capitalization of $ 2.2 trillion, the total valuation of cryptocurrencies is almost triple from the $ 774 billion at the beginning of 2021. 2022 also looks promising, even if the first days of January are difficult, the year 2022 presents itself present under the scheme. best protection.
With an increase of almost 10,000% in 2021, Solana has seen a huge rise in the past year. The platform’s advantages in terms of transaction speed and capability can help maintain momentum by attracting decentralized application (dApp) projects that require a scalable and cost-effective blockchain platform.
DApps are programs that use self-executed smart contracts to deliver services on the blockchain. To date, these are relatively specialized applications, such as decentralized cryptocurrency exchanges and digital art markets. But the more the technology improves, the more the use cases increase.
With a transaction capacity of 50,000 per second (compared to 15 for Ethereum), the Solana platform could contribute to the emergence of a new generation of scalable blockchain-based programs with real-world utilities.
Zebec’s Solana – based payment protocol illustrates this potential. Zebec is designed to enable real-time financial transactions for salaries and investments. In January, fintech megacapital Visa partnered with Zebec under its Fintech Fast Track program, designed to incubate innovative payment solutions. This agreement is an impressive vote of confidence in the Zebec protocol and the Solana blockchain on which it is built.
Growing over 3,000% in 2021. Like Solana, Avalanche is designed for dApp development and can process 4,500 significant transactions per second. Its unique transaction burning mechanism could help support price growth by improving the scarcity of its native AVAX signal.
Unlike Ethereum, which uses a heavy-duty proof-of-work (PoW) mechanism in which miners solve puzzles to verify transactions, Avalanche uses proof-of-promise (PoS). Its miners validate transactions using the AVAX tokens they already own in a process called staking. The tokens are locked, making them temporarily non-transferable, in exchange for new units valued at an annual percentage return (APY) of 9.8%, according to the platform’s website.
To combat inflation and exacerbate AVAX shortages, the exchange network burns transaction fees by sending them to an inaccessible wallet.
To date, approximately $ 617,000 AVAX units have been withdrawn from circulation, valued at $ 55 million. The trade stream system is great news for investors, as scarce assets tend to be more valuable, assuming that demand remains steady or increases. And with its significant transaction capacity, the network is about to attract its fair share of developers.
Bet on innovation in 2022
Solana and Avalanche are very different cryptocurrencies, but they have one big thing in common: innovation. Solana has optimized its blockchain for speed and scalability, and Avalanche’s unique transaction burning mechanism could help increase its scarcity and token price. These features could keep both currencies ahead of the pack in 2022. And it’s never too late for new investors to bet on its success.