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Cryptocurrency Solana (SOL) in recent weeks, the whole market has literally been at war and has no competition. It’s only been a few days since he got into the TOP10, but he is currently starting to attack TOP5 from seventh place. However, the reasons for this growth are no mystery and we will talk more about them today.
Not surprisingly, one of the reasons for growth is NFT. Currently, this area is gaining huge attention thanks to the vision of rapid earnings. The growth of the entire NFT area has been growing exponentially in recent weeks, with this growth amounting to hundreds of percent.
A large NFT ecosystem was created on Solana, to which the need for cryptocurrency SOL – it puts buying pressure on the cryptocurrency itself and pushes it upwards.
2. A number of projects are created here
More than 400 projects are being built on the Solana network, including various applications of decentralized finances (Defi). Decentralized finance is an umbrella term for a number of projects that remove intermediaries (often banks) from financial transactions. FTX a Alameda Research built their decentralized cryptocurrency exchange on the network Serum, which also hosts the increasingly popular USDC stablecoin. The platform is also used by another of this month’s cryptostars, Audius (AUDIO), which may also be a factor in the increase in the price of Solana cryptocurrency. Earlier this month, TikTok also chose Audi as its streaming partner.
3. A better alternative to ETH
The category itself. ETH was the first cryptocurrency with the function of smart contracts, and many cryptocurrencies have since followed these steps. Most decentralized applications are still built on Ethereum, but the network is struggling with congestion and high charges. As a result, developers and investors are looking for more efficient alternatives. Solana is one of a number of programmable blockchains that are fighting for the championship in this area, where ETH reigns supreme.
Wormhole, translated as wormhole, offers a way to easily bridge different networks. Currently, blockchains are not very good in mutual cooperation and their connection was impossible or demanding. This was another stumbling block in terms of growth. It would be like having two wireless service providers who can’t communicate with each other. According to the Coindesk website, projects can now use Wormhole to move cryptocurrencies between the ETH and Solana networks quickly and cheaply. Solana claims that the next step will be the connection with Terra (LUNA) and Binance Smart Chain.
Solana is currently one of the fastest blockchains. Claims to be able to process over 50,000 transactions per second (TPS) for less than $ 0.01 per transaction. Not only is it competitive with companies like Visa, but Solana says this speed can be further improved with hardware upgrades – potentially up to 700,000 TPS. To better understand this number, ETH currently processes 15 to 45 TPS.