7 Things To Know About Solana, The Hot Crypto Outperforming The Broader Market

7 Things To Know About Solana, The Hot Crypto Outperforming The Broader Market

solana

7 Things To Know About Solana, The Hot Crypto Outperforming The Broader Market Photo: Official logo

Solana is the current hot crypto, a cryptocurrency famous for its cheap and fast transactions. It’s seeing a major upwards price movement and strong growth. It is surprising all by outperforming the broader market.

Here are seven things to know.

1. What is Solana

Solana (SOL) is a web-scale blockchain that provides fast, secure, scalable, decentralized apps, and marketplaces, according to Genesis Block

2. Bucked bitcoin sell-off

SOL logged a record daily percentage gain on April 25, defying bitcoin’s 6 percent sell-off.

The SOL tokens surged 30 percent on the FTX exchange to near $33 that day, according to TradingView. Solana now has a total market capitalization of more than $8.3 billion, CoinDesk reported.

3. Inside the Solana ecosystem

“Alameda, a trading firm led by Sam Bankman-Fried, has been heavily investing in the Solana ecosystem in a bid to promote an Ethereum alternative capable of faster transactions and higher scalability,” CoinDesk reported.

Ethereum, a decentralized, open-source blockchain with smart contract functionality, is the second-largest cryptocurrency by market capitalization, after Bitcoin. Ethereum handles about 15 transactions per second (TPS), while Solana can handle more than 1,000 TPS, according to data from the blockchain and Solana Beach

Bankman-Fried’s team is building Serum, a decentralized exchange (DEX), on SOL.

4. What’s Behind The Growth?

Solana is also up an incredible 260 percent from its price of $12.59 registered a month ago.
People are turning away from the high fees and slow transactions on the Ethereum blockchain and turning to faster and cheaper alternatives such as Solana.

5. Solana’s future

Proponents claim it has a bright future, given the blockchain is seeing its own wave of DeFi DApps, many anticipate that the network will see plenty of real-life use and push its value even higher, Benzinga reported. 

Decentralized Finance or DeFi is “a movement that leverages decentralized networks to transform old financial products into trustless and transparent protocols that run without intermediaries,” according to Dapp Radar. DeFis put the average bank clients on the same level that bankers are on. 

DApps are applications that run on decentralized infrastructure such as blockchains.

6. The growth of Solana

Solana “has grown over the past several months as it enters key sectors of the market, including decentralized finance (DeFi) and more recently, the non-fungible token (NFT) space,” Yahoo reported.

7. Up next

Coming up next on the SOL blockchain is the launch of Star Atlas. Star Atlas is a “next-gen gaming metaverse where you can create, play, and learn with players globally,” Yahoo reported.