The Solana network and its SOL token are on the rise. On Monday, the token cracked the $ 100 mark, reached just under 117 and is currently hovering around $ 110.
SOL is the whiz kid among the big cryptocurrencies – a position, by the way, that the token was able to achieve within just one month. On Monday, SOL ranked 8th among the most valuable cryptocurrencies, according to Coinmarketcap. Solana has a market capitalization of $ 32 billion. Rank 7 should be reached quickly, this rank is currently still occupied by Dogecoin with almost 37 billion dollars.
While Doge has lost around eleven percent in the last seven days, Solana can show 53 percent growth over the same period. In the past 24 hours alone, the SOL recorded almost 19 percent growth. Looking at other major cryptocurrencies, Solana’s price development is amazing. They tend to move sideways.
NFT drop pushes SOL course up drastically
The responsibility for the almost explosive rise is largely due to the start of the NFT art project “Degenerate Ape Academy” in mid-August. The art project had 10,000 different cartoon monkeys available for purchase. In less than ten minutes, all the monkeys were taken. The monkey sale was organized and carried out by the NFT marketplace Solanart, the equivalent of Opensea, on the Ethereum chain. The prospective buyers from 13 SOL, at the time around 1,000 dollars, had to spend on the acquisition of the cartoon NFT. The fact that the ascent would hold even after the end of the hyped project was judged with skepticism.
But there is a lot to be said for it. So the blockchain of the Solana network is used more and more and activity is one of the parameters that indicate the value of the system. The increase in activity had already caused the token to rise slowly. In terms of content, the chain can also score points with the proof-of-history consensus model.
Solana scores with high speed and low fees
With up to 50,000 transactions per second, it is significantly faster than Ethereum with its 30. The transactions are processed accordingly quickly. There are no traffic jams so far. In addition, Solana scores with extremely low fees, while the previously expensive Ethereum has even increased by around nine percent after the London hard fork.
Will Solana Take the NFT Leadership? It seems possible. Especially in the NFT area, the Ethereum chain could threaten the faster, cheaper Solana chain. Ethereum had recently made one or two lapses with NFT drops – think of the unsuccessful purchases as part of Mila Kuni’s NFT project Stoner Cats. Because the Ethereum chain could not cope with the load of slightly more than 10,000 sales in 35 minutes, bidders had lost a total of around $ 800,000 to ETH.
In addition, the relevant ETH gas trackers show in unison that NFT drops via the Opensea marketplace continuously lead to fee peaks. The marketplace is the undisputed burn king when it comes to burning the base fee according to the new fee model. Faster, more reliable and cheaper processing of NFT drops is a huge advantage for both artists and collectors. But also in the rest of the defi area, the Smart Contracts blockchain from Solana can compete with the previous top dog Ethereum due to its extremely flexible scalability.
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