To what extent does Solana’s computing power exceed that of Arbitrum and Optimism? Asked by Jonah Van Bourg.
Jonah Van Bourg claims that Ethereum’s rivals have a bleak future despite the crypto market’s shift towards a cautiously bullish outlook.
Meanwhile, Van Bourg claims that layer-2 solutions on Ethereum, such as Arbitrum and Optimism, are thriving. Blockworks Research claims that in comparison to other blockchains, those with a lower TVL (total value locked; a monetary measure of the worth of a blockchain’s ecosystem) are doing poorly.
At the current price of Ethereum, which is over $26 billion, the TVL of Solana is worth around 1% of that amount, or about $320 million.
Layer-2 blockchains based on Ethereum Both Arbitrum and Optimism are outperforming Solana’s TVL and are now worth almost $2 billion and $900 million, respectively.
The head of digital asset trading at GoldenTree, Avi Feldman, is quick to disagree. Felman contends that “when the bull market comes back,” incentive programmes will provide value to competing protocols.
However, incentives are the “only draw” for rival chains. Rebuttal from Van Bourg. You can’t keep saying “That”
Felman claims that new, rival chains would enjoy a “renaissance” because of the “greed factor,” and that by offering incentives to new employees, these businesses may be able to achieve “escape velocity” and become “real projects.”
It’s not the technology per se, according to Felman; it’s the “use-case fit.” “Technology is not always the limiting factor. The limitation, he believes, is in determining how to put the technology to use. Van Bourg agrees, but he thinks the debate validates his position even more.
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