Solana becomes Seventh largest cryptocurrency amid Price surge

Solana SOL token, an Ethereum rival, has jumped to the seventh position amidst recent increase in its price. This rise has made the token a worthy competitor of Ethereum, and crypto enthusiasts are optimistic about the drive.

According to data from CoinGecko, the token has tripled its market value and now has a  market of $41 billion. This sudden rise in price according to its supporters was due to the lower cost and faster rate of transactions than Ethereum and Bitcoin

Solana, one of the fastest growing blockchain in the world and the fastest growing crypto ecosystem, boasts a low average transaction fee of$0.00025 and a throughput of over 1,900 live transactions per second. This is incredibly low compared to Ethereum’s average transaction fee of $5.842. These are some of the key attributes that make the project highly competitive against Ethereum. 

The chief executive of officer of crypto trading firm Alameda Research, Sam Bankman-Fried speaking on the potential of the project said:

“Solana has the most ambitious tech road map of any blockchain, and they’ve been making impressive progress on it.” “It’s a blockchain that has the potential to support a DeFi ecosystem with world-scale activity,”  he added.

Apart from its superior transaction speed and low fees, Solana also uses a lot less amount of energy as compared to Ethereum.

Crypto investors over the past year have poured in millions of dollars into Defi which will allow them to gain interest on their digital currency holdings. Most Defi projects use Ethereum which has become very congested making its transactions very slow and gas fees to be on the rise, Ethereum currently handles only 13 transactions per second unlike Solana. This opens the door for Solana to compete with Ethereum. 

The Solana project raised $314 in June for its DeFi ecosystem. According to Jonathan Cheesman, head of over-the-counter and institutional sales at FTX, the project is  becoming too big to ignore and offers a different smart contract solution to Ethereum.

Solana traded around $25 and $41 in June, but had a great market turn over in the month of August, dethroning Dogecoin as the seventh largest cryptocurrency. It recorded an all-time high of $150 on 4th September 2021

Alternative coins like Solana, Cardano and Binance Coin have surged in recent weeks to become top gainers in the cryptocurrency market. Bitcoin, the number one cryptocurrency, has also rallied above  $51,000.

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I am a crypto and blockchain technology fan with a love for writing to enlighten others about the revolution. This I do by writing news stories to bring the latest developments to my readers and help them stay informed about the most recent developments in the space at all times.