Solana, one of the most popular cryptocurrencies hit an all-time high of $130 with a market capitalization of nearly 40$ billion from its 24-hr low of 107$.
The “Ethereum Killer” provides a decentralized finance solution, is one of the hottest and trending projects in the Defi space due to its competitive edge over the most popular Defi project ethereum, and has got the potential to take over the throne of ethereum in the future.
“Popular altcoin Solana has reaffirmed its status as an outlier in the market,” wrote Jonas Luethy, a trader at London-based cryptocurrency broker GlobalBlock in a Monday email to Forbes all praise Solana for being the best performer over the last few weeks.
Solana skyrocketed 10% on Monday and has already given a 6800% return in this year alone outperforming Cardano(ADA), Bitcoin(BTC), and Ethereum(ETH) which gained up to 1160%, 63%, and 372% this year respectively, climbing its way to world’s eighth-largest cryptocurrencies in just a year since its inception.
Luethy pointed to the boom of the NFT market and its traction among celebrities as the catalyst for Solana’s rally. According to Luethy, NFT sales in August hit a record of 900$ million which is three times the previous monthly best.
Solana unlike its competitors Cardano, Ethereum, etc utilizes Proof-of-history to verify a transaction which uses cryptography to prove the relative order and time of passage of each message in its blockchain.
Solana’s blockchain has an average block time of 400–800 milliseconds with an average transaction fee of 0.000005 SOL thus capable of over 50,000 TPS while Ethereum’s Blockchain’s consensus algorithm has an average block time of 15 seconds with gas fees going as high as 100$ or more depending on the traffic and is only capable of 30 TPS.
While Ethereum is undergoing major upgrades in its network with a provision to go up to 100,000 with ETH 2.0 but the upgrade is under development with the recent being the ‘London Hard Fork‘ which introduced the EIP-1559, which aims to make the transaction fees more predictable thus solving its major gas fee issue.
Meanwhile, the coin currently fell to its day-low of around 107$, an expected consolidation range, and is expected to go past the 200$ mark as BTC enter into a bullish phase thus holding a long position in Solana and other major altcoins is expected to have some major returns this year and some even predict the coins alternative to BTC and Ether to outperform the two most popular cryptocurrencies in the awaited bull run.