Newton Gitonga
Cryptocurrencies witnessed significant uptrends over the weekend, catalyzing Bitcoin’s rebound past $85K.
Amid the optimism, Solana co-founder Anatoly Yakovenko attacked Layer2 scaling solutions, deeming them unnecessary to build.
There is no reason to build an L2.
L1s can be faster, cheaper, and more secure.
They aren’t slowed down by a glacially moving L1 data availability stack, or have to compromise security with complex fraud proofs and upgrade multisigs.
Anatoly champions Layer1 platforms such as Solana for their speed, cost efficiency, and top-notch security.
He stated that Layer2 protocols rely on L1s to access data and could include complex multi-sig updates and fraud proofs.
The co-founder believes Layer 1 platforms such as Solana,
Aren’t slowed down by a glacially moving L1 data availability stack or have to compromise security with complex fraud proofs and upgrade multisigs.
Notably, Yakovenko’s claims come as markets debate scalability in the blockchain sector.
L2 networks are crucial for platforms like Ethereum (ETH) as they improve transaction throughput.
Solana’s co-founder believes L1 platforms can attain the objectives without the inadequacies inherent in L2s.
Yakovenko challenges Ethereum’s L2 ecosystem
The SOL co-founder criticized Ethereum’s capability to scale L2 solutions.
Ethereum developers advocate for L2s to reduce gas charges and network congestion.
Meanwhile, Solana optimizes its Layer1 infrastructure to handle multiple transactions without extra layers.
The different approach to scaling has magnified competition between Solana and Ethereum.
However, one user trusts Yakovenko’s claim could hurt innovation in the financial space.
SOL price outlook
Yakovenko’s remarks triggered interest in Solana.
The blockchain has established itself as a rival to Ethereum’s L2 solutions with its speedy transactions and friendly costs.
Meanwhile, analysts speculated SOL’s potential rebound as participants explore scalable Layer1 solutions.
SOL displayed an upside stance at press time, gaining nearly 6% in the past day to $138.
The 100% surge in trading volume highlights renewed enthusiasm.
Technical indicators reveal Solana’s bullish bias at current price levels.
The Chaikin Money Flow jumped from the negative territory in the past day.
The rising CMF signals cash flowing into Solana’s ecosystem amid optimistic sentiments.
Also, the MACD’s bullish crossover suggests extended upsides for Solana.
The Relative Strength Index has approached the neutral region (50) after continued uptrends since March 10.
The RSI’s upswings demonstrate strengthening momentum amid buyer resurgences.
SOL should hold above $136 and test the level as support to confirm breakouts towards $150.
Meanwhile, Bitcoin’s performance might influence SOL’s actions.
Bitcoin trades at $87,122, targeting the crucial resistance at $90K.
To me, it looks like #Bitcoin has seen a solid retest and we’re aiming for higher.
Break $87K and we’re back up above $90K.
BTC stability above $90K will shift the crypto market’s near-term trajectory to bullish, fueling altcoin recoveries.
SOL appears poised for outperformance amid such developments.
Solana will likely attract more projects and developers as markets favor L1 solutions.
The current blockchain debate suggests a brighter future for SOL’s price, opening the path to $1,000 in the coming months or years.
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