While new price highs are positive for investors, they do present a range of challenges relating to fees, transaction speeds and the centralization of what is meant to be a decentralized ecosystem. Since mid-2020 institutional investors have been steadily flooding into cryptocurrency and this is exacerbating the issue of scalability, high transaction costs and lengthy confirmation times on the Bitcoin and Ethereum blockchain.
Eth2 is steadily rolling out, but it could still be some time before users will benefit from its host of new features. This leaves the door open for other viable candidates to fill the void and a handful of layer 2 projects are gaining traction in the decentralized finance space.
One such project that has been making waves in the past 6 months is Solana (SOL).