Solana’s native token, SOL, currently the 10th largest cryptocurrency by market capitalization, made a gain of over 72% in just two days. The $20 billion valued crypto managed to break past its mid-May peak by breaching the$70 milestone.
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Errr, What is Solana?
Solana is an open-source blockchain project that provides advanced decentralized finance (DeFi) solutions. DeFi applications aim to replace traditional financial systems like banks and exchanges by using cryptocurrencies.
Initially mooted in 2017, Solana was launched by Anatoly Yakovenko in March 2020 to solve the Blockchain Trilemma. Termed by Vitalik Buterin, the founder of Ethereum, the Blockchain Trilemma is the challenge faced by developers while creating a blockchain that is decentralized, scalable, and secure.
And Solana addresses all three challenges without compromising any. This makes it the most preferred go-to blockchain solution for developers building DeFi applications.
One of the essential innovations of Solana that makes it distinct is the proof-of-history (POH) consensus. Known for its incredibly short processing times, as of mid-2021, Solana supports 50,000 transactions per second (TPS) producing a new block every 400 milliseconds.
The high-speed blockchain is often referred to as the ‘Ethereum Killer’. Solana can process nearly as many transactions in a month as Ethereum has in its entire history.
Reasons for Solana’s Bullish Run
It’s pouring good news for Solana from all across the spectrum!
First, Solana’s price rush is coupled with the booming NFT sales. OpenSea, the largest NFT marketplace, hit over $1 billion in sales in August.
The launch of the Degenerate Ape NFT collection on Solanart, an NFT platform that uses Solana, saw a sale of 10,000 cartoon apes in eight minutes. Following the news, Solana shot up 28% immediately.
Besides, last week’s Wormhole Update launched by Solana Foundation triggered the massive surge in prices. The update allows integration between different types of blockchains on its network.
In the same week, Mango Markets, a decentralized high-speed exchange powered by Solana raised $70 million successfully in crowdfunding. Solana is also home to Serum, another popular exchange, founded by crypto-billionaire Sam Bankman-Fried.
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