There is a new number 7 in the crypto market: The proof-of-stake network Solana with the native SOL token has overtaken the fun currency Dogecoin (DOGE). With a price of more than 115 euros per token, SOL has soared to a market capitalization of almost 34 billion euros and relegates DOGE to the ranks with 32.6 billion euros.
So it is clear: Solana is one of the big climbers of the year. While most other coins and tokens hit their all-time highs in May (and then crashed), SOL’s huge growth has only really started to take off since August. Of course, this does not go unnoticed in the market. “I have noticed that Solana is very well received, that there is a lot of talk about it and that it sells well in the markets,” says Cardano founder Charles Hoskinson. There’s even talk of partnering with Solana in his community.
In fact, both Cardano and Solana are proof-of-stake networks that are positioned as challengers to Ethereum. Cardano will soon introduce long-awaited smart contracts with its ADA token, which will finally enable dApps on the blockchain. Only in this way will Cardano really become a platform on which other decentralized applications run like Ethereum. But Ethereum, where the NFT hype and the DeFi boom are taking place, is still the undisputed number one.
Ecosystem is picking up speed
Now Cardano sees a new rival growing up very quickly, who is picking up speed. It is not for nothing that Solana Labs from San Francisco boasts around founder Anatoly Yakovenko that it can manage a very large number of transactions per second with very low transaction costs. This is said to have brought more than 400 projects to Solana so far, including recently the music platform Audius (NFTs), the Chainlink competitor Pyth Network or the decentralized Exchange Serum. The second largest stablecoin in the market, USDC, also works at Solana.
It is particularly important, however, that Solana has a powerful ally and financier in FTX co-founder and investor Sam Bankman-Fried. He invested in Solana Labs via Alameda Research, and there are also links to the world’s fourth largest crypto exchange by volume. The tokenization of shares from FTX was done on the Solana blockchain, and Bankman-Fried is also behind the decentralized Exchange Serum.
Solana: Who and what is behind the rise of the proof-of-stake blockchain