Key Points:
- SOL token experiences an impressive 88% price surge in just 30 days.
- Solana’s cost-effectiveness and speed make it a compelling Ethereum rival.
- Major partnerships with Visa and Shopify drive investor interest.
Solana, often regarded as a rival to Ethereum, is making headlines once again in the cryptocurrency world, and its native coin, SOL, is reaping the benefits of this newfound attention. The price of SOL has surged by over 9% today, reaching a 24-hour high of $44.41. Over the past month, it has shown remarkable growth, appreciating by more than 88%, making it the standout performer among major cryptocurrencies.
This resurgence comes as a surprise to some, given its past association with the now-collapsed FTX crypto exchange and its founder, Sam Bankman-Fried, who faced legal issues. However, experts argue that Solana’s recent success should not be unexpected.
Solana positions itself as the preferred network for on-chain applications and experiences, presenting itself as a viable alternative to Ethereum. While Ethereum is praised for its stability and security in the smart contract space, Solana stands out for its cost-effectiveness and speed, particularly for those involved in creating or utilizing lending protocols, games, and other applications based on blockchain technology. Solana’s transaction fees are currently impressively low at $0.000522, compared to Ethereum’s average cost of $6.58.
Notably, Solana has attracted the attention of major players like Visa, Shopify, and developers eager to build on its network. The streamlined approach and high base layer throughput of Solana have simplified the developer experience, making it an appealing platform for various applications.
According to Akash Mahendra, a portfolio manager at Yield App, major partnerships and institutional interest have also contributed to the recent surge in SOL’s price.
Despite Solana’s past challenges, it has seen a resurgence. FTX, a prominent crypto brand that was heavily invested in Solana, faced a well-publicized bankruptcy, holding over $1 billion in SOL, leading to a decline in the cryptocurrency’s value. However, big players in the industry still see substantial value in the Solana project.
In recent months, Solana made significant strides. Solana Pay, its payment protocol, integrated with Shopify, enabling merchants to accept the stablecoin USDC through blockchain technology. Visa also announced its choice of Solana’s blockchain for its stablecoin endeavors, reinforcing the network’s speed and scalability.
These developments have bolstered investor confidence in Solana, with fresh capital flowing into the project. In addition, the recent rally in Bitcoin and the broader crypto market significantly benefited SOL, which had been oversold following concerns about FTX’s management selling off large amounts of SOL.
Solana’s annual conference, Breakpoint, held in October, further fueled its recent rally, marking a remarkable turnaround from the previous year when SOL’s price had plummeted following the FTX crash.
As the cryptocurrency landscape is known for its volatility, the question remains whether Solana’s resurgence can be sustained.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
