Solana is the current hot crypto, a cryptocurrency known for its cheap and fast transactions. There is a big upward movement in prices and strong growth. It’s all surprising when you outperform the broader market.
Here are seven things to know.
1. What is Solana?
Solana (SOL) is a web-scale blockchain that, according to Genesis Block, offers fast, secure, scalable, decentralized apps and marketplaces.
2. Aborted Bitcoin sell-off
SOL posted a record percentage per day on April 25, defying the 6 percent sell-off of Bitcoin.
According to TradingView, SOL tokens on the FTX exchange rose 30 percent to nearly $ 33 that day. Solana now has a market cap of more than $ 8.3 billion, according to CoinDesk.
3. Within the Solana ecosystem
“Alameda, a trading company led by Sam Bankman-Fried, has invested heavily in the Solana ecosystem to promote an Ethereum alternative that enables faster transactions and greater scalability,” reported CoinDesk.
Ethereum, a decentralized open source blockchain with intelligent contract functions, is the second largest cryptocurrency by market capitalization after Bitcoin. Ethereum processes around 15 transactions per second (TPS), while Solana can process more than 1,000 TPS, according to data from the blockchain and Solana Beach.
The Bankman-Fried team is building Serum, a decentralized exchange (DEX), on top of SOL.
4. What’s behind the growth?
Solana is also up a staggering 260 percent from the $ 12.59 price it registered a month ago.
People are turning away from the high fees and slow transactions on the Ethereum blockchain and turning to faster and cheaper alternatives like Solana.
5. Solana’s future
Proponents claim it has a bright future as the blockchain sees its own wave of DeFi DApps. Many assume that the network will be used a lot in practice and will increase its value even more, Benzinga reported.
Decentralized Finance or DeFi, according to Dapp Radar, is “a movement that uses decentralized networks to convert legacy financial products into trustworthy and transparent protocols that run without intermediaries”. DeFis puts the average bank customer on the same level as the banker.
DApps are applications that run on a decentralized infrastructure such as blockchains.
6. The growth of Solana
Solana “has grown in recent months as it entered key sectors of the market including decentralized finance (DeFi) and, more recently, the non-fungible token (NFT) space,” Yahoo reported.
The next thing on the agenda is the start of Star Atlas in the SOL blockchain. Star Atlas is a “next generation gaming metaverse that lets you create, play, and learn with gamers around the world,” reported Yahoo.