The recent crypto Market pump took many By surprise and particularly surprising Were the coins and tokens that pumped The most among the top 100 Aptos and Solana stuck out as two of the biggest Gainers now this is no coincidence Considering that these crypto projects Are very similar Aptos has even been Branded the Solana killer and this has Left many wondering which will win out In the end so today I'm going to compare Two of the fastest most funded and most Controversial cryptocurrencies on the Market and tell you which one has the Most potential I'll begin by saying that nothing in This video is financial advice it's just Educational content that's meant to Assist you on your cryptoquest also note That I do not hold apt or Soul as part Of my personal crypto portfolio you can Find out which cryptos I currently hold Using the link in the description Also in the description you'll find Links to my most recent videos about Both projects which will give you some Background on each one should you need It that said here is a super quick tldr For those unfamiliar so Solana was Founded in 2017 by Anatoly yakovenko With the purpose of replacing Centralized stock exchanges like the NASDAQ with a decentralized blockchain This is still Solana's goal though it
Has dabbled in other niches such as nfts And crypto payments Solano was built by Solana Labs which is based in the United States and its ongoing development is Coordinated by the Solana Foundation a Non-profit based in Switzerland its Mainnet went live in 2020 and much of Its ecosystem funding came from FTX and Alameda Aptos meanwhile was founded in Late 2021 by Avery ching and Muhammad Sheikh both of whom previously worked at Facebook they say Aptos technically Began with Facebook's failed crypto Project called Libra now Libra was born In 2017 and died as DM in 2022 while It's likely that most of Aptos was built By Facebook Aptos Labs is the software Company credited with aptos's actual Creation Aptos Labs is based just Outside of San Francisco and aptos's Ongoing development is coordinated by The Aptos Foundation a non-profit based In the Cayman Islands unlike Solana Aptos doesn't have a clear crypto Niche Or use case this could be a consequence Of it being so new or a sign that it Intends to do it all Aptos raised 350 Million dollars across two token sales In 2022 lead investors included FTX and Collapsed crypto hedge fund three arrows Capital among others aptos's main net Went live in October 2022 and the launch Was controversial you can learn more About that using the link in the
Description Now under the hood Solana uses a Proof-of-stake blockchain that can Process up to 120 000 transactions per Second however FTX documentation notes That Solana's current TPS is between two And three thousand Considering that Solana was ftx's de Facto exchange chain it's likely these Figures are correct regardless Solana's Speed is made possible by the novel Components of its proof of stake Consensus notably proof of History which Time stamps all Solana transactions Solana uses its own Solana virtual Machine for smart contracts and these Smart contracts are coded in the rust Programming language the Solana Blockchain is currently secured by Roughly 2300 validators the caveat is That all transactions are processed by Groups of up to 150 validators called Solana clusters now Solana's website Suggests that these clusters currently Consist of just 30 validators which is Quite centralized not only that but it Appears that Solana still only has a Single validator client in plain English All Solana validators must connect to a Single service to interact with the Blockchain this presents a single point Of failure which has contributed to Solana's outage issues in the past along With Spam transactions of course and as
A centralized cherry on top Solana Validators Only Store the most recent Transaction history on their Hardware Salon as long-term transaction history Is stored on Google bigtable a Centralized server if anything were to Happen to this long-term transaction History there could be big problems and Speaking of validator Hardware Solana is Notorious for having some of the highest Validator requirements of any Cryptocurrency Current Hardware requirements to run a Solana validator essentially require Having a Data Center and that's before All the soul that needs to be staked Though there is no minimum Soul stake The amount of soul that a validator Needs to stake to break even is sizable Luckily Soul can be delegated Solana Staking rewards are currently around Seven percent per year with a five-day Lockup for validators and delegators Misbehaving validators are slashed so Watch out As for Aptos it uses a delegated Proof-of-stake blockchain that can Process up to 160 000 transactions per Second but of course aptos's current TPS Is much lower According to a December interview with Avery and Muhammad Aptos can currently Process between two and five thousand TPS
Aptos's speed is made possible by its Own novel delegated proof-of-stake Consensus mechanism which is honestly Outside the scope of this video Now another significant contributor to Aptos's speed is its relative Centralization the Aptos blockchain is Currently secured by a little over 100 Validators the Silver Lining is that These 100 or so validators seem to be Storing aptos's entire transaction History which could change as the Blockchain grows at least Avery has been Vocal about making aptos's middleware Decentralized for example making sure There are multiple validator clients Even so Hardware requirements for Aptos Are also quite high now what's Concerning is that Avery has avoided Questions about Hardware requirements For validators increasing as the Blockchain becomes faster even though Aptos's documentation suggests these Requirements will in fact increase now Like Solana Aptos uses its own virtual Machine for smart contracts if I Understand correctly the move VM was Invented by DM's developers a lot along With the move programming language which Is based on Rust coding in move on Aptos Is reportedly easy whereas coding in Rust on Solana is not what's annoying is That the staking requirements for Aptos Aren't entirely clear as far as I know
Delegating apt is only possible using a Liquid staking D5 protocol called Tortuga apt staking rewards are seven Percent per year with a 30-day lockup Validators on Aptos are currently safe From slashing now you can learn more About the pros and cons of liquid Staking by watching our video about Lido Finance that will be in the description Now in terms of tokenomics Seoul is the Native coin of the Solana blockchain It's used to pay for transaction fees For staking by validators and delegators And will eventually be used for the Governments of Solana itself Seoul had An initial supply of 500 million which Was distributed as follows 37 to early Investors 25 to the Solana team and the Solana foundation and 38 to the Solana Community Reserve which is of course Managed by the Solana Foundation Some of you might recall that Seoul had One of the most aggressive vesting Schedules of any cryptocurrency all the Soul allocated to investors the team and The community was supposed to be Released all at once in January 2021 yet This somehow did not affect seoul's Price or circulating Supply I suspect That Solana's biggest backers including FTX and Alameda came up with a way to Ensure that early investors got their Money's worth without crashing seoul's Price I say this because FTX and Alameda
Were holding around 15 percent of Seoul's total Supply when the two Companies went under last November Seoul's total Supply currently sits just Shy of 540 million with much of it being Concentrated in the top Solana wallets It's not entirely clear which wallets Belong to the Solana team or the Solana Foundation it's also not clear whether Any Soul that's still vesting is allowed To staked in any case Seoul has no Maximum Supply and its inflation rate is Scheduled to decline from eight percent Down to 1.5 percent over the next 10 Years 1.5 percent will be seoul's final Inflation rate because 50 of all Soul Used to pay for transaction fees is Burned this means that salt could become Deflationary with enough adoption when It comes to aptos's tokenomics apt is The native coin of the Aptos blockchain And it's used to pay for transaction Fees for staking by validators and Delegators and is also used for Governance of Aptos itself though this Governance is currently limited to Validators apt's tokenomics were Released shortly before apt listed on Exchanges this is one reason why aptos's Launch was controversial the Aptos team Has since promised to update apt's Tokenomics but it still hadn't happened At the time of shooting this as the
Facts stand today apt had an initial Supply of 1 billion which was Distributed as follows 13.5 percent to early investors 35.5 Percent to the Aptos team and the Aptos Foundation and 51 was set aside for the Aptos Community Reserve which is of Course managed by the Aptos Foundation Note that the wallet addresses for these Entities are also not noted on any Explorers As you can hopefully see most of the APT In circulation for the first year comes From the Aptos Community Reserve with a Small amount coming from the Aptos Foundation and from staking rewards note That some of the APT from the Aptos Community Reserve was airdropped to the Aptos community Sometime later this year apt will begin The most aggressive portion of its Vesting schedule wherein its entire Initial supply of 1 billion will be Released over the course of roughly four Years this aggressive vesting schedule Peaks at the end of 2026 which could be The top of the next crypto bull market It also seems that the data on coin Market cap and coin gecko about apt Supply is incorrect they note apt Circulating Supply is around 160 million While Aptos Explorer suggest that apt Circulating Supply is around 180 million It's important to note that apt's
Tokenomics specify that vesting apt can Be staked as I mentioned earlier apt's Inflation rate is currently seven Percent per year this inflation rate Will fall to 3.25 percent and apt's Tokenomics specify that this inflation Target will take 50 years to reach if That wasn't here really similar enough 100 of apt to pay for transaction fees Gets burned again forecasting future Deflation you can learn more about how Tokenomics affect a crypto's price Action using the link in the description Now this is the part of the crypto Comparison video where I'd pop open a Few price charts and speculate on how High these cryptos could go Unfortunately I can't do this for Seoul And apt this is simply because both Cryptos could crash hard due to Bankruptcy selling by FTX and Alameda so Instead I'm going to give you a Fundamental analysis of Solana and Aptos That will tell you much more about soul And apt's future potential than Technical analysis tea leaves the Tokonomics effectively covered the Source of supply for Seoul and apt so This leaves the demand drivers now based On my experience the best way of seeing How much demand there is for a Cryptocurrency is to check how many Times its most popular wallets have been Downloaded how many active users its
Decentralized applications have the Total value locked in its D5 protocols And its developer activity Solana's most Popular wallet is the phantom browser Extension which has over 2 million Downloads on Google Chrome alone I Should note that Phantom raised a Whopping 109 million dollars from Various crypto VCS early last year and Is in the process of expanding support To other blockchains I should also note That the number of phantom wallet Downloads is the same as it was when we Last covered the project in November After ftx's collapse what's encouraging Is that data from dap radar suggests That Solana's monthly active use account Has since stayed steady at around 300 to 500 000. what's not so encouraging is That the total value locked on Solana's D5 protocols has fallen so far since November that it's falling out of the Chart provided by defy Lama this makes Sense considering that FTX and Alameda Seem to have been providing lots of the Tvl which now stands at 265 million Dollars Solana's developer activity is where Things get insanely bullish for Seoul if You watched our video about electric Capital's developer report for 2022 You'll know that Solana was the second Largest crypto project by active Developers after ethereum with over 2
000 people working on Solana projects Now you might think many of these Developers abandoned Solana after the Collapse of FTX and Alameda but electric Capitals data for 2022 extends to December this suggests most of them Stuck around the best part is that the Number of developers has historically Stayed the same during crypto bear Markets The only issue is Runway FTX and Alameda Had invested in almost every major Solana project including Solana itself Anatoly has confirmed that Solana Labs Has enough Runway to last for another Year and a half but the same can't be Said for most Solana projects and some Have already started switching Blockchains it's a similar story for Aptos downloads of aptos's most popular Wallets the Martian and Petra browser Extensions have stayed steady at around 500k and 300K respectively What's odd is that the number of Downloads was much lower during my Research but have since returned to Their October levels hmm what's even More odd is that data about aptos's Decentralized applications doesn't seem To be available thankfully the Aptos Explorer lets you see the number of Daily active wallets and it currently Sits at around 20K now this is 20x less Than the number of daily active Wallets
On Solana which is around 400k This is consistent with the surprisingly Low total value locked on aptos's D5 Protocols of just over 60 million Dollars now this is where I need to Issue a quick correction in our previous Aptos video I speculated that some Vesting apt was being staked on Tortuga I misread the tvl figure it's 10 million Not 10 billion Anyway last but not least we have Aptos's development activity which has Likewise been surprisingly lackluster The Electric Capital report revealed That Aptos only has around 250 Developers working in its ecosystem 10x Fewer than Solana this is consistent With the fact that Aptos has roughly 10x Fewer daps than Solana The Edge that Aptos has over Solana is that it Probably has a lot more money to spend On development the apparent ease of Building on Aptos versus Solana could Therefore result in many Solana Developers leaving for Aptos then again Solana isn't the only competitor that Uses rust to build dapps And now for the big question which Crypto project has the most potential Solana or Aptos Well I'll start by reiterating that the Short-term future for both crypto Projects is very uncertain this is of Course again because of the close
Connections they both had to FTX and Alameda research and then some Besides all the sole pressure Sol and Apt are likely to face Solana and Aptos Will both experience severe regulatory Scrutiny in Solana's case it will be Because it was the de facto exchange Chain of FTX in aptos's case it will be Because it's the continuation of the Libra crypto project created by Facebook If you've watched any of our videos About crypto regulations you'll know That the reveal of Facebook's Libra in 2019 caused governments around the world To panic imagine what will happen once Regulators realize that Aptos is a Continuation of Libra under a different Name as per the admission of the Founders now regarding the factors I Covered in this video Solana arguably Has a superior background compared to Aptos this is in part because anatoly's Experience with and understanding of Computing Hardware is exactly what you Need when building a fast cryptocurrency Anatoly has also been building Solana Since 20 17. by contrast Avery and Muhammad's Experience and understanding has more to Do with software and marketing this Works well in an environment where all The hardware is taken care of by a big Tech company like Facebook but it Doesn't work so well in crypto where
Hardware is the real hurdle moreover I'll repeat that it's unclear how much Of aptos's development was actually done By Aptos Labs most of the crypto Software Aptos leverages was built with The billions that Facebook poured into Libra this building May extend back to 2017 but the teams aren't the same and Remember sui exists too it's also hard To compare exactly what's under the hood I suppose the most important component Is decentralization in which case Aptos Takes the Cake the only problem is that The details about aptos's Decentralization aren't available and Aptos is still much more centralized Than the average crypto project Tokenomics is where Aptos takes the L to Be blunt Aptos might be the only Cryptocurrency with worse tokenomics Than Solana this is mostly due to the Lack of transparency but it's also Because so much of Apt Supply is held by Aptos labs and the Aptos Foundation Better than FTX and Alameda I suppose Now the final factor is adoption and This is where things get interesting Solana clearly has much more adoption And development but most of this Adoption and development was thanks to FTX and Alameda which are no longer Around Some would say that Solana's adoption Has peaked as a result conversely Aptos
Is only just beginning to see adoption And not just from individuals aptos's Close connections to Big Tech have Attracted the attention of Google and Others it could start to see some Serious big Tech Integrations which Could ironically result in even more Regulatory scrutiny That said Solana has seen similar Interests from institutions and has Already secured Partnerships with Instagram and Facebook for nfts Solana Is also the official blockchain of Circles usdc stablecoin which is on Track to become the largest by market Cap Solana will likely benefit from this Inevitability still there's no denying That Aptos is extremely overvalued Relative to Solana Solana's market cap Currently stands at 9 billion only Around 3x more than aptos's actual Market cap of 3 billion this is despite Solana having 10x more developers and 20x more daily active users Food For Thought in some then Solana has the edge Over Aptos in the short term and Possibly the medium term notwithstanding Some issues related to FTX and Alameda In the longer term it's too soon to tell But Aptos appears to be perfectly Positioned to secure the Partnerships Needed for Mass adoption Solana not so Much but that is just my opinion and I Would love to get yours in description
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