thecoinrepublic.com
- Solana’s SOL token surged to become the seventh-most valued cryptocurrency this week, surpassing Dogecoin on Tuesday and climbing by 26% to a new high of $125.98 (€106.55), before reverting to eighth place
- Solana founded Degenerate Monkey Academy, a company that sold a collection of cartoon ape drawings
- Solana has received more than $7 million (almost €6 million) in investment in the last week, according to crypto investment firm CoinShares
Solana’s SOL token surged to become the seventh-most valued cryptocurrency this week, surpassing Dogecoin on Tuesday and climbing by 26% to a new high of $125.98 (€106.55), before reverting to eighth place. Solana has increased by about 220 percent in the last month.
The coin was just introduced 18 months ago, yet it already has a market capitalization of more than $30 billion (€25 billion). So, what accounts for Solana’s meteoric surge in the cryptosphere? The network’s foray into non-fungible tokens (NFTs), which can be anything digital like art or music that is sold with technology, is the key reason for Solana’s recent popularity.
Solana founded Degenerate Monkey Academy, a company that sold a collection of cartoon ape drawings. People required the cryptocurrency to buy the cartoon apes, thus 10,000 of them sold in the first 10 minutes, driving the SOL token higher.
Solana has also benefited from NFTS’s August surge, which set a new sales record of $900 million (€761 million). In recent months, Solana has focused on DeFi (decentralized finance) projects, which remove financial institutions and intermediaries from financial transactions and execute them on the blockchain. Solana has prioritized smart contracts, which are blockchain-based programs that execute when certain circumstances are met and automate agreements so that everyone knows what will happen. They eliminate all middlemen and accelerate the process.
Solana has been able to take advantage of the NFT and DeFi markets as a result of this. However, other cryptocurrencies, such as Cardano, are intending to enter the smart contract space, implying that there will be more competition. Solana also employs the proof-of-history (PoH) consensus, which entails grouping messages together in order to provide proof and a record of when each message was sent. On the blockchain, the concept provides for better scalability and trust. Another major promise made by the network is that consumers will not be startled by higher taxes and fees. Traders have also speculated about a possible new feature that Solana plans to deploy in early September, but little is known about it.
Solana has received more than $7 million (almost €6 million) in investment in the last week, according to crypto investment firm CoinShares. Bitcoin, on the other hand, had a $2.8 million (€2.3 million) investment loss. However, Solana is unlikely to dethrone Bitcoin very soon.
Solana is viewed as a competitor to Ethereum because the technology is less expensive and claims to have a transaction speed of 50,000 transactions per second. Solana will see greater competition in the sector it has carved out as more blockchains begin to incorporate smart contracts and move into NFTs. However, there is another danger.
Solana’s price dropped 60% this summer as a result of China’s crypto laws, which coincided with the crypto market crisis. The United States is also looking into the cryptocurrency sector, which might put the value of all tokens in jeopardy.