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The rising star of the crypto world doesn’t want to be an Ethereum killer

The growth of the SOL token is currently dwarfing everything in the crypto market. While many other coins and tokens are currently barely growing or shrinking slightly, SOL, the native token of the Solana blockchain, can once again show growth rates of 30 percent on Tuesday. The market capitalization is now 46 billion euros – significantly more than Dogecoin and not that far away from XRP.

Solana has more than quadrupled in the past three months with growth from 35 to just under 160 euros per token. The company Solana Labs, which is behind the token, seems to be doing everything right at the moment and is managing to win more and more projects for its Layer 1 blockchain. This attracts with high transaction numbers (approx. 1,600 / second), very low transaction costs (0.00025 cents / transaction) and the possibility of becoming active as a validator in the network.

This strong focus on developers, who increasingly see Solana as their blockchain of choice, is paying off. In addition to the technology, they are lured with hackathons, multi-million dollar prize money, their own fund and a large conference. The bottom line is that the company of founder and CEO Anatoly Yakovenko, which only started in San Francisco in 2018, is doing everything it can to retain developers. The calculation: The more dApps, NFTs and Web3 applications run on Solana, the more valuable the SOL token becomes. Ecosystem building par excellence.

“I hate that eth killer thing”

Solana, who benefits from a strong connection to FTX founder Sam Bankman-Fried (more on this here), does not want to be perceived as an Ethereum killer. “I hate this eth killer thing. I am an open source developer. I grew up when Linux was fighting Microsoft. The big misconception people have about open source projects is that it is possible to kill them. Well, if there are developers out there who just have fun working on this thing over the weekend, it’s impossible to kill them! There is no way to kill Ethereum. Basically, that’s not something we think about, ”said Solana Labs founder Yakovenko at the 2021 Upbit Developer Conference in Seoul.

Rather, he sees Solana as a possible future alternative to traditional stock exchanges. “The goal of Solana is to transmit transactions as fast as messages travel around the world – that is, the speed of light through fiber optics. We are competing with NASDAQ and the New York Stock Exchange, “said Yakovenko.” So when an important event occurs in Seoul that is important to the markets, that message has to be relayed to a marketplace in New York so that the trader can looking at the Bloomberg terminal will see it with this light-speed delay. “

Stock buying frenzy spills over into altcoins

As an application example, Yakovenko sees Serum, a decentralized exchange that Solana Labs started together with FTX and Alameda Research by investor Bankman-Fried and (logically) builds on Solana. The Automated Market Maker (AMM) Raydium, which works closely with Serum and Solana, is currently growing very strongly. Solana has even found its way into pop culture – singer and dancer Jason Derulo recently came out as a token investor.

Meanwhile, the meteoric rise of Solana in the traditional financial world is viewed critically. “The cryptocurrency markets are looking cocky again,” said JPMorgan analysts to their customers. The buying frenzy for stocks spilled over into Altcoins in August, when more and more investors pounced on NFTs, for example. This increase in NFTs and DeFi activities would have driven up not only Ethereum, but also other smart contract platforms such as Solana, Binance Smart Chain and Cardano.

Solana: Who and what is behind the rise of the proof-of-stake blockchain

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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