Solana Becomes 7th Largest Cryptocurrency | INQUIRER.net USA
 
 
 
 
 
 

Solana becomes 7th largest cryptocurrency

/ 10:58 AM September 07, 2021

With its native cryptocurrency SOL, Solana has jumped another spot, making it the seventh among the list of the world’s top10 largest cryptocurrencies. While there’s optimism that Solana could be stale at this point, it’s also expected that it could be Ethereum’s long-term competitor until the tables turned to get it to its no. 7 spot now and to throw the leading meme coin, Dogecoin.

According to CoinGecko, Solana’s SOL tripled in value in three weeks, rising at 300% in the last 30 days. With a market value of $41 billion, advocates proclaim the crypto’s lower transaction cost and digital and finance collectibles speed. From August 1, SOL has set a record high on its price levels.

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During that span, the price started at $35 per coin to a new high price of more than $136. Solana is now 23% higher over the course of 24 hours. It continues its leading rise passing the $100 mark for the first time last week.

Nexo co-founder and crypto lender Antoni Trenchev wrote in one email, “Solana has a growing ecosystem, projects are being built on it, and it’s benefited hugely from the mania that’s taking place in NFTs.”

NFTs or collectively known as non-fungible tokens, are used in trading digital collectibles. He also mentioned that the backing up crypto figure Sam Bankman Fried aids in the continuous climb.

Solana sells their name as the world’s fastest blockchain. According to their website, their transaction cost is $0.00025. Last June, they announced raising $314 million in funding with investors, including Andreessen Horowitz’s capital firm, Polychain Capital and Coinshares, and Alameda Research from Bankman-Fried.

Promising potentials

Alexandra Clark, the sales trader from a UK-based digital asset broker GlobalBlock, said in an email, “Major players in the space such as FTX and Jump recognize its potential. Not only that, but the network’s foray into NFTs with Solanart, the marketplace built on the SOL blockchain, has been instrumental in driving the alt coin’s price higher. SOL’s current price rally is likely to continue.”

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This is a recent development that could help boost the world of finance. Just late last month, Pyth Network, a crypto market data provider, went live on Solana’s main net. Plans are rolling for that to be able to broadcast market data using the Wormhole Network.

FTX’s institutional sales and head of over-the-counter wrote in an email, “It’s becoming too big to ignore and offers a different smart contract solution to Ethereum.”

On the other hand, the other Cryptocurrency, Dogecoin, has previewed a mixed performance. As CoinGecko reported, its price rises to 46% in the past 30 days but only 7.5% over the last week.

Dogecoin snaps back faster than the other coin rivals. When the vast majority of the cryptocurrency market rebounded in late July, Dogecoin fluctuated harder in either direction than Ethereum and Bitcoin.

Although Dogecoin’s price is up and climbing since the start of the year ($0.0055 – current $0.29), Solana’s market cap now sits at $39.2 billion. It’s relatively higher than Dogecoin’s $38.7 billion market cap.

From the start, Solana was built as a more energy-dynamic, proof-of-stake blockchain. It offers lower fees and fast transactions. SOL token’s price rise attributed to the growing NFT and DeFi also comes from user adoption and wider development.

This supposed “Ethereum killer” is quite behind its rivals regarding network activities and connections. This upstart blockchain still lacks in some areas. Take, for example, Solana’s DeFi protocols have $3.6 billion in market value. At the same time, Ethereum DeFi protocols have $126 billion assets locked up.

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TAGS: crypto, cryptocurrency, dogecoin, USFINANCE
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