Solana (SOL), the crypto emerging from the shadow of Ethereum Screen reader support enabled
April 23, 2021 4:46 AM
Cardano is not the only blockchain that wants to compete with Ethereum and profit from its congestion. Solana is also a serious competitor and its ecosystem is growing. The SOL benefits from this and is showing a strong increase.
When it comes to staking, Ethereum has to contend with three growing adversaries. These are Cardano (ADA), Polkadot (DOT) and Solana (SOL). The three blockchain technologies have strong arguments.
To compete with Ethereum, which today has the largest ecosystem, they rely on their scalability, that is, their ability to handle a large volume of transactions. But we still have to convince companies to migrate.
SOL up 200% in 1 month
And in this area, Solana is currently enjoying some success. This reflects on the value of its native token, the SOL. It is currently experiencing strong growth. Over the last 24 hours, the SOL has recorded almost 16% growth.
The cryptocurrency is valued at around 31 euros, its highest level to date. Solana ranks 18th among cryptocurrencies with a total valuation of 8.38 billion euros. This is a far cry from the leaders in crypto to be sure, but the momentum is positive.
Solana is taking advantage of the DeFi boom, which is now attracting institutional investors. At the same time, however, this growth suffers from technical limitations, and in particular Ethereum congestion.
DeFi applications and protocols are therefore looking for remedies. And the solutions proposed by Solana constitute a response with a TPS (transactions per second) of 65,500. So investors are also interested in SOL. On March 26, the crypto was trading at $ 12. Over one month, the price therefore increases by almost 200%.
Solana Enters Ethereum Rifts
The blockchain is thus attracting growing capital for staking. According to data from StakingRewards, Solana now ranks 3rd at $ 9.4 billion. That's still a long way from Cardano and Polkadot at $ 26.4 billion and $ 22.7 billion, respectively.
But this interest in SOL is first and foremost the result of increasing adoption by applications. The blockchain thus hosts the main stablecoins USD Coin (USDC) and Tether (USDT).
Several DeFi protocols have also chosen Solano, such as Raydium and Serum, the latest project from the founder of the decentralized exchange FTX. And this ecosystem continues to grow, as illustrated by one user on Twitter.
Cointelegraph further points out that Solana received another boost in April with the launch of Sollet, the Solana wallet, as an extension for Google Chrome. The Solana ecosystem thus has the equivalent of Ethereum with MetaMask.