This Tuesday, the ‘altcoin’ Solana (SOL) became the seventh cryptocurrency with the highest market capitalization above Dogecoin , Elon Musk’s favorite. This currency, rival of Ethereum , has grown more than 800% in less than two months . In the last 24 hours alone, a surprising 35% took off according to data from CoinGecko .
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“Solana has a growing ecosystem, projects are being built on top of it and it has benefited greatly from the craze that is taking place with NFTs,” industry expert Antóni Trénchev told Bloomberg .
The boom of Solana, the new trendy cryptocurrency
The value of Solana began to rise little by little from the beginning of 2021, but its current boom began last July and has not stopped.
On July 20 , the SOL had a market capitalization of around $ 6.1 billion, CoinGecko records, and just 24 hours ago it was $ 41.63 billion. This September 7, at dawn, Solana reached a value of 56,276 million dollars , that is, it has increased more than 800% in less than two months and 35% in just one day .
This places it as the seventh largest capitalization coin in the market .
As for the price , the digital currency registered an increase of almost 730% in a month and a half . During the early hours of this September 7, it registered a maximum of $ 194.57 per token , far from the $ 23.49 that it cost just on July 19. It’s also 39% more than it was trading just a day earlier, when the price was $ 140.13 per unit.
Part of this popularity is due to the call for a worldwide Hackathon that will run until October 8.
1 / We have IGNITION. Welcome to the global Solana hackathon.
$ 5 million in prizes + funding across 4 tracks: DeFi, Web3, Gaming & Art / Collectibles
Tracks presented by @Microsoft , @jumptrading , @StanChart , @FortePlatform , @metaplex
Register + build now https://t.co/QKtI2gJulh pic.twitter.com/VHQTzWwf3s
– Solana (@solana) August 31, 2021
The ‘Ignition’ event promises to distribute a total of 5 million dollars in prizes to the best projects developed on the Solana blockchain . Sponsors include Microsoft , Jump Capital and Standard Chartered , Coin Telegraph reports.
On the Nasdaq index website you can read that “Solana’s recent earnings appear to be fueled by excitement around decentralized finance initiatives, or DeFi , and the recent announcement of a mystery event from the cryptocurrency development team.” . However, stock market experts warn that SOL remains a “high risk, high reward” product .
What is Solana?
The alternative cryptocurrency or ‘altcoin’ Solana is based in Geneva, Switzerland; its creator and CEO is Anatoly Yakovenko . Together with other partners they created the prototype in 2018 and named it Solana, because for a few years they lived in San Diego, California, also known as ‘Solana Beach’.
The cryptic currency SOL was launched in March 2020 and is considered to be ‘the fastest blockchain in the world’ . In addition, it aspires to unseat Ethereum using its own blockchain , although for now ETH has a capitalization eight times that of Solano (403.4 billion dollars).
Yakovenko worked for Qualcomm and Dropbox before publishing his so-called ‘white paper’ in November 2017. In it he explains that the technology to create SOL tokens is a different model of blockchain architecture , call ‘Proof of History’, underpinned in a way other than coding the passage of time on the blockchain.
This could skyrocket the number of operations to 710,000 transactions per second on a gigabit network. And the more people use it, the faster it gets.
This scalability ensures that SOL transactions remain below $ 0.01 for both developers and users. In fact, it has an average cost per transaction of $ 0.00025. The specialized portal CoinMarketCap highlights that this is why it has attracted both small users and companies as well as institutional investors .
More and more interest in Solana
More and more investors are betting on the young cryptocurrency. ” If anyone wants Web 3.0, look at Solana ,” veteran investor David Gokhshtein said a few days ago. to Business Insider . In his opinion, the cryptocurrency is “very undervalued .”
“Solana is one of Ethereum’s competitors. […] The platform has the fastest public blockchain ” , they pointed out from the investment bank Goldman sachs in a recent report. They also noted that it is cheap and easy for developers to use.
In June 2021, Solana announced that it had raised $ 314 million in a funding round with investors including Bankman-Fried’s Alameda Research, venture capital firm Andreessen Horowitz, Polychain Capital, and CoinShares.