By
Chimamanda U. Martha
April 25th, 2024
Solana (SOL) has been among the top altcoin performers over the last month. The cryptocurrency has entered a new price discovery zone while approaching the $200 milestone.
Open source blockchain project and Ethereum-competitor Solana has sent ripples across the crypto market. As of press time, Solana (SOL) price has surged 30% in the last 24 hours hitting a new all-time high of $194.
Solana (SOL) Price
This makes it the world’s 7th largest cryptocurrency with a market cap of $54 billion toppling Dogecoin (DOGE). The price rally in Solana (SOL) started last month in mid-August 2021. In less than a month’s time, SOL has gained 4.5x giving a staggering 350% returns to investors.
Just over the last week, the SOL price has appreciated by 90%. The Solana blockchain network employs a Proof-of-Stake (PoS) consensus model along with a Proof-of-History (PoH). With its high scalability, Solana is now emerging as a competitor to Ethereum hosting several DeFi apps.
In fact, the SOL price rally comes on the backdrop of a solid surge of its on-chain DeFi activity. As per the real-time data provided by DeFi Lama, the total value locked (TVL) on the Solana blockchain has reached an all-time high of $5.98 billion. Since June 30, the TVL on Solana has jumped tenfold.
Saber (SBR) remains the most dominating project on the Solana blockchain contributing nearly 30% of the total value locked. Speaking to the Financial Express, Kumar Gaurav, Founder & CEO, Cashaa said:
“We are in a bull market where the government is printing notes like paper. This is creating significant value to fixed supply assets like Bitcoin and Gold. But having this flood of new users joining the community is hunting for cryptos to get rich. Solana is an alternative to Ethereum with faster speed and lower costs. But it still has to prove in the real world. A sudden growth like this is a dangerous situation, but at the same time, it’s an opportunity for traders”.
Solana Has Major Industry Backing
Earlier in June 2021, Solana Labs – the developer of the Solana blockchain – secured $314 million in funding from giants like Andreessen Horowitz (a16z) and Polychain Capital. Besides, other big players like CMS Holdings, Blockchange Ventures, and Alameda Research also participated.
Furthermore, Solana has also received massive backing from FTX Exchange founder Sam Bankman-Fried. Looking at its massive scalability, FTX also launched a decentralized exchange on Solana.
🥳 Those who have been expecting #Solana to cool off have been sadly mistaken. Dominance of #crypto discussions related to $SOL have soared on its 154% rise since late August en route to its latest #AllTimeHigh of $172.95. https://t.co/77oRlDxGaz pic.twitter.com/UGRWyCcaOJ
— Santiment (@santimentfeed) September 7, 2021
Solana (SOL) has delivered an unfathomable rally in a very short time. The cryptocurrency is now eyeing a spot in the top five crypto-list with its immediate competitor being XRP. Moreover, indirect comparison with Ethereum is making analysts bullish to give higher price targets of 4300 and above. Solana’s social dominance in the market has peaked severely in recent times.