The arrival of institutional investors and the rise of decentralized finance (DeFi) have been an incredible boon for the entire cryptocurrency sector, but have also highlighted a number of persistent limitations that many blockchain networks face as activity and scaling requirements increase.
High fees and slower transaction times on the Ethereum (ETH) network have left the door open for new Layer 1 solutions to emerge, and Solana (SOL) is one such project that has been gaining traction recently.
Data from Cointelegraph Markets and TradingView show that the price of SOL rose 195% over the past month, from a low of $ 12.19 on March 26 to a new all-time high of $ 36.10 on April 19, in record volume increased from $ 1.4 billion.
Similar to how Ethereum grew in prominence in 2017, Solana’s strong performance last month was sparked by the launch of several projects on the SOL blockchain, ranging from legitimate DeFi protocols to pump and dump air drops that speculators, too Solana’s exchange brought.
Amazed at the growth of the @ solana ecosystem.
Looking forward to seeing @mangomarkets @PsyOptions @staratlas
And congratulations to @mangomarkets, what an outstanding Dex experience on mainnet-beta pic.twitter.com/Ewr8VbM4VG is
– Solanians ☀️ (@solanians_) March 23, 2021
Fast transactions and low fees attract developers
One of the biggest attractions for the Solana network is its claim to be able to process 65,500 transactions per second (TPS), which is considerably faster than Ethereum’s current average of 18.3.
The network’s ability to handle a larger load has also made the platform a cross-chain destination for projects like Civic (CVC) and the popular stablecoins USD Coin (USDC) and Tether (USDT).
DeFi platforms like Raydium and Serum have launched on Solana, and there is a growing list of projects in transition to the network.
The outlook for the network received another boost in early April when the Solana-based Sollet wallet released its Chrome extension, which offers the Solana ecosystem functionality that mirrors how MetaMask for Ethereum works.
Simple income opportunities attract DeFi users
The Solana protocol uses a PoH (Proof-of-History) consensus in combination with the underlying PoS (Proof-of-Stake) consensus of the blockchain, which makes it easier for token holders to give a return on their SOL tokens achieve and at the same time participate in the network.
The number of cryptocurrency wallets that SOL support is also a sign that the project is attracting more attention. So far, Exodus, Ledger, and Blockfolio are some of the most famous wallets that offer support for the token.
Preparing for the rise of @solana
Top wallets support SPL tokens in the ecosystem pic.twitter.com/3b2kmvUCwJ
– Solanians ☀️ (@solanians_) April 8, 2021
A recent integration into the Phantom wallet has also reinvigorated the project as it will enable the creation of a robust NFT ecosystem on Solana. This brings one of the hottest sectors of the crypto market to the network.
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