The cryptocurrency linked to the Solana network jumped to seventh place, in the ranking of the ten largest digital currencies in the world: the reason for the buy is explained by the belief of many investors that the blockchain is destined to become a rival of Ethereum in the long term.
Solana’s SOL token, a Bloomberg article notes, has in fact tripled its value in just three weeks and now has a market capitalization of more than $ 41 billion (dati CoinGecko).
Its supporters point out the lower costs than those of Ethereum of decentralized finance transactions and of NTF (sector dominated by Ethereum).
“Solana has a growing ecosystem, projects are being built on it, and in particular (cryptocurrency) is benefiting a lot from the mania that is manifesting for NTF “, he commented to Bloomberg Antoni Trenchev, co-founder of the crypto group Nexo.
NTF and lower costs, all assists from Solana
Trenchev also stressed that Solana benefits from the support of Sam Bankman-Fried, number one of the crypto platform FTX.
NTF, it is worth specifying, it is an acronym that stands for non-fungible token: practically, according to the definition that is given, NTF is a digital file whose identity and ownership are inscribed on a blockchain.
The passion for the NFT market is such that it has triggered a real euphoria in the art world, as shown by the case of huge Jpeg collage by artist Beeple, the work “Everydays: the First 5,000 Days”, which was auctioned at Christie’s last March 11 for almost 70 million dollars, purchased with payment in ether by an investor who calls himself Metakovan.
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Solana herself describes herself as the fastest blockchain in the world, with the website pointing out that the average cost of the transaction and equal to $ 0.00025.
In June, the group announced it would having raised $ 314 million thanks to a round of funding that saw investors such as Alameda Research, the venture capital firm Andreessen Horowitz, Polychain Capital and CoinShares focus on the project.
Also at the end of last month, Pyth Network, cryptocurrency market data company affiliated with Jump Trading, went live on Solana’s main network, confirming a trend that should continue to assist the decentralized finance.
Solana, commented Jonathan Cheesman, head of over-the-counter and institutional sales at FTX, “has grown too big to ignore.”
Cheesman added that his network also offers “a smart contract solution different from that of Ethereum.
So-called alternative digital currencies – alternative coins – such as Solana’s SOL, Cardano’s ADA and Binance Coin have witnessed the boom in their prices, stealing the show from the most classic cryptocurrencies, such as Bitcoin and Ether.
Things are going very well however also for the Ethereum, with Ether which jumped by almost 5% last Friday past the $ 4,000 mark, the record since mid-May and just 8% below the all-time record tested that month. Today the Ethereum loses the $ 4000- mark again. Bitcoin rises just over 2% above $ 51,000-