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Token – Dogecoin overtaken: Ether competitor Solana now the seventh largest crypto currency in the world

The cryptocurrency SOL, which is connected to the Solana network, has risen to seventh place among the ten largest virtual coins in the world. Optimism that the blockchain could be a long-term competitor for the much larger Ethereum network has recently fueled the price of the token.

The SOL token has tripled within about three weeks and, according to CoinGecko, now has a market value of more than 41 billion dollars. Proponents especially praise the high speed and the lower costs of transactions on the Solana blockchain for DeFi applications (decentralized finance), in which Ethereum has so far dominated.

Price development of the SOL token over the last twelve months, graphic: CoinGecko.

“Solana has a growing ecosystem, projects are being built on it, and it’s benefiting enormously from the mania that takes place in NFTs (Non-Fungible Tokens),” wrote Antoni Trenchev, co-founder of crypto lender Nexo, in an email. An NFT is a “non-replaceable” digitally encrypted item that is used, for example, for trading in digital collectibles. In addition, the support of the crypto personality Sam Bankman-Fried – head of the crypto exchange FTX – is helpful.

Solana describes itself as the fastest blockchain in the world. According to the website, the average cost per transaction is $ 0.00025. In June, the company announced it had raised $ 314 million in a funding round. According to the announcement, the investors include Bankman-Frieds Alameda Research Research, the venture capital firm Andreessen Horowitz, Polychain Capital and CoinShares.

Late last month, Jump Trading-affiliated crypto market data provider Pyth Network went live on the Solana network, a development designed to empower the world of decentralized finance. It is planned that it will soon be able to transmit market data via the so-called Wormhole Network. “It’s getting too big to ignore and offers a different smart contract solution than Ethereum,” wrote Jonathan Cheesman, head of off-market and institutional sales at FTX, in an email.

So-called altcoins (alternative coins) such as SOL from Solana, ADA from Cardano and Binance Coin have risen sharply in recent weeks and have moved the top tokens Bitcoin and Ether more into the limelight during the general comeback of cryptocurrencies. Bitcoin has also rallied, getting close to the $ 52,000 mark on Monday. Skeptics argue that the technological upgrades that power some tokens couldn’t justify the scale of the rally.

(Bloomberg / cash)

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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