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Solana Attains New Record Along Way in Rally to Become 6th Biggest Crypto

UTC by Tolu Ajiboye · 3 min read
Solana Attains New Record Along Way in Rally to Become 6th Biggest Crypto
Photo: Depositphotos

Solana (SOL) has displaced other top-10 assets to attain this record even as the rest of the crypto market is currently in a slow run.

Solana (SOL) is currently trading at an all-time record high after surging more than 10,000% this year. Furthermore, the coin experienced a 20% rise in the last 24 hours despite the general crypto lag. This rally is a record position that has pushed Solana’s total market capitalization past the $61 billion mark. The digital currency is now the sixth biggest crypto in the world, according to CoinMarketCap

Solana blazed past other popular tokens such as XRP, Dogecoin (DOGE), and PolkaDot (DOT) during its ascent to its current position. There is optimism that the blockchain infrastructure could be a major long-term competitor even to Ethereum.

Solana-built apps can currently handle over 2,000 transactions per second and are relatively cheaper. Currently, ETH can only process less than 20 transactions per second. The Solana blockchain also allows developers to write and launch customizable applications in multiple programming languages. Consequently, several developers are now switching to SOL, with the network currently fielding more than 400 apps. Some of the top apps on the Solana protocol include FTX, 8Pay, Hedgehog, and Solana Beach.

Also noteworthy is that the total value locked (TVL) of all DeFi projects in the Solana ecosystem is over $3 billion. Although this figure is quite low compared to Ethereum’s $90 billion TVL, SOL is growing at a relatively faster pace.

Contributing Factors in the Buildup to the Solana Record

Solana’s price rise is also a result of the Fear Of Missing Out (FOMO) factor. Bullish traders and investors are positioning themselves to latch on to the next significant Ethereum rival. They find the speed, scalability, and interoperability of Solana’s ecosystem very appealing and promising. For all its success, Solana is not the only crypto that has done well amid the crypto meltdown. NEAR Protocol and Algorand are other open-source platforms to also record relative successes.

Daily charts show a Solana bullish trend over the past few weeks, with the price jumping 500% in the last 30 days. With an astounding rise of 11,000% in 2021, SOL is currently one of the world’s best-performing assets. SOL crossed the $60 key resistance level, which was the highest level on May 18th. It is presently at the key psychological level of $200, and the bullish momentum may continue. However, there may be a pullback at some point as some bulls start to take profits.

Solana is a rapidly-growing protocol that seeks to develop an ecosystem of cryptocurrency-powered products and services. Its technology platform enables the development of decentralized apps (DApps) and decentralized autonomous organizations (DAOs). SOL launched in 2018 and has features similar to Ethereum, the second-largest crypto by market cap. However, Solana differentiates itself from ETH by providing faster transaction speeds, lower fees, and a flexible programming capability. This is especially apparent when dealing in the world of decentralized finance (DeFi) and digital collectibles. Also, unlike Ethereum, Solana is built from scratch using the proof-of-stake concept. Ethereum and Bitcoin both use the proof-of-work concept.

Bitcoin Price

As Solana hits a new record, Bitcoin remains volatile, with one analyst predicting an impulsive move to $50,000. BTC is currently at $46,285 after losing more than $9,000 on Tuesday, possible due to overleveraged trading. Popular trader Crypto Ed says that he would not put it past the asset to further test its lows of $42,280. Rekt Capital also says there may be a retest of BTC’s 50-day exponential moving average as a turning point. Regardless, improved performances from altcoins – Solana included – is stoking optimism on Bitcoin’s bullish short-term case.

Altcoin News, Cryptocurrency news, News
Tolu Ajiboye
Author Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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