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Phemex crypto exchange offers 34 spot trading pairs, with SOL/USDT becoming the 35th after its listing on 20th August.
The competition in the blockchain space is getting stronger with every passing year. It is seeing rapid growth and adoption due to the well-researched theories about its groundbreaking use cases in various fields. As the awareness of DLT spreads and solidifies and more people realize its practical worth, the number of promising projects that show up every year rises phenomenally.
An important use case of blockchain is decentralized finance (DeFi), and it has seen disruptive innovations in a short time span. Today, it’s a multi-billion dollar industry, owing to the successful technological advances of decentralized exchanges (DEXs). Even after an exceptional talent base and enough monetary support, there are glaring problems that remain unsolved.
Most DEX projects currently reside on the Ethereum network, making scalability to millions of users a tough nut to crack. Due to the Ethereum network’s longstanding congestion issue, transaction fees have spiked sharply, encouraging users and dApp developers to look for alternatives.
Solana, a platform that uses a Proof-of-History layer to boost the protocol’s processing power, is confident that it can solve this problem. Proof-of-History is a novel algorithm that works like a clock for blockchain. It has the power to unlock network speed and can provide the community with the first web-scale blockchain and unmatched transactional capacity.
One way of solving Ethereum’s low throughput problem is to migrate from an orderbook-based model to Automated Market Maker (AMM). While it has proved to be a fresh, improved way of empowering decentralized finance, it is still not as efficient as an orderbook-based model.
Here’s where Solana offers extraordinary upliftment to DeFi. Its protocol possesses astonishing speed and combines it with the orderbook-based model for optimised functioning and network throughput. It is one of the first projects, along with Tower BFT, Turbine, and Replicator nodes, to promise effective solutions to DLT’s scalability challenges.
A Closer Look at Solana
The project was first launched around the 2017 ICO boom where it was able to acquire $25 million through public and private funding. Soon after the ICO, Solana began developing its blockchain with the help of its newly hired principal engineer. Its whitepaper was published in February 2018, followed by multiple testnets. Last year, the project also released its mainnet in all success.
Solana’s secret sauce of success has been its Proof-of-History algorithm, which provides the entire decentralized network with a trustless source of time. The algorithm enables immutable transactions on Solana, but it also has the added advantage of allowing transactions in any order on the system. It introduces this feature because Proof-of-History works like a verifiable delay function (VDF). No matter the order in which the transactions are received, it can sort them in chronological order using trackable timestamps. This is disrupting DLT as it has the power to handle congestion and improve network speed.
Since Solana is not dependent on Layer-2 solutions or sharding mechanisms to increase network speed, developers can freely create projects on the network without worrying about the fees or performance.
In May 2021, Solana’s native token SOL soared to $56 from a relatively insignificant value of $1 to $2 in 2020. The token has also achieved its new all-time high, which is more than $75. This impressive market performance of SOL has given its early adopters a chance to reap ROI as big as 6500%. Currently, around 270 million SOL tokens are in circulation.
Recently, an NFT project called Degenerate Ape Academy was built on Solana, pushing its recent market value significantly north. The project also caused the trading volumes to reach close to $6 million per day. The cost of some of these NFTs is quoted around $7 million, or more than 100,000 SOL.
Solana’s SOL has shown immense market potential and gained popularity through its astounding performance in recent years. While SOL has pushed Solana’s capabilities and placed it in the spotlight, it is still in the process of being listed on big digital asset exchanges.
SOL was added on Coinbase only last year, and from 20th August onwards, it’ll also gain a spot on Phemex listings.
Solana’s Forthcoming Dominance in DLT
As discussed earlier, scalability stands as a wall between the partial and full-blown success of DeFi. A big challenge for DeFi platforms is to attract a larger number of users. Currently, Ethereum is at the centre of the stage due to its ecosystem’s compatibility with new projects. It has been around for the longest time and has won the trust of the developer community. Solana’s biggest roadblock will be user-onboarding when the blockchain community has already found Ethereum as its comfort zone.
Solana has released ‘Wornhole’ to engineer this issue, which will act as a bridge between Solana, Ethereum and other DeFi networks. The protocol provides trustless support to inter-blockchain messaging, along with cross-chain liquidity on Solana’s network.
As for Ethereum, it has never had a lack of competition and still maintained its domination in the smart contracts space for years. Developers who are just starting out with their blockchain projects do not have to think twice before seeing Ethereum as their obvious choice.
Comparing Solana with the existing success of Ethereum, it is essential to note that the former has witnessed rapid growth over the last few years. Solana has given life to a variety of applications and projects through its platform. Some of the renowned names in blockchain that have used Solana for their projects are Chainlink, USDC, Serum, and Terra. This makes a case for Solana’s future dominance over the Ethereum network as it continues to attract and empower new projects to revolutionize the world of blockchain further.
Phemex: A Platform Committed to Quality
Phemex is a Singapore-based crypto exchange founded in 2019 with the vision to become a world-class exchange of high integrity and trust. Jack Tao, the CEO of Phemex, led a group of Wall Street experts to build this robust platform. It utilizes a series of technological innovations to maintain a trading engine that’s fast, reliable, and inexpensive.
Phemex wants to offer a variety of financial products and services to its clients but is diligent with the screening process when listing projects on the platform. The community that Phemex has created is now growing and has recently crossed the one million trade benchmark. It makes constant efforts to stay connected to its community.
Phemex is also famous for its derivatives trading service involving digital assets. It provides many options to its traders with contracts for over 37 trading pairs. It also offers 34 spot trading pairs, with SOL/USDT becoming the 35th after its listing on 20th August.