The resurgence of cryptocurrencies such as Bitcoin and Ethereum over the past few months has understandably impacted the performance of other altcoin projects on the market. The altcoin named SOL has increased by a staggering 3,200% since the beginning of the year. Yes, 3.200%… These are levels similar to Dogecoin. However, according to analysts, there is an important difference here: Unlike DOGE, Solana seems to promise much more in terms of development and utility.
Altcoin project jumped from $ 2 to over $ 49 in 4 months
At the time of writing, SOL was worth $ 44. On January 1, 2021, altcoin was trading for just under $ 2 on the charts. Thanks to its recent fluctuations, the cryptocurrency ranks 15th on CoinMarketCap’s charts. The Altcoin project has skyrocketed from $ 2 to over $ 49 in 4 months. How did the SOL gain so dramatically in value? Well, the performance of the Solana Blockchain certainly played a major role in this rise. But what also contributes is how its performance fares compared to Ethereum’s likes.
Solana is a layer-1 blockchain that promises faster transactions with a scalability infrastructure and much lower fees than competitors like Ethereum. Yes, the competitor, because while Solana does not advertise itself as a single company, it takes up the same space as the Binance Smart Chain. BSC promises something similar, despite centralization concerns like Solana. According to the latest report by OKEx Insights, Solana is able to support his words with his “new” approach to “reaching consensus,” adding proof-of-history to an underlying proof-of-stake.
Solona targets Ethereum’s shortcomings like Binance Smart Chain
In fact, as the said report points out, Solana is using the above to reduce cross-validator communication and the associated delays, as there is a 400 millisecond block time for four blocks on the Solana blockchain. As stated earlier, Solana did not exactly describe itself as an Ethereum competitor or an “Ethereum killer”. But what it did targeted Ethereum’s shortcomings, just like Binance Smart Chain. As the above report points out, Ethereum currently handles an average of 18 transactions per second, while the same figure is as high as 1,000 for Solana.
Moreover, the average transaction fees for Ethereum were just under $ 10, while the same for Solana was as low as $ 0.0002. This astronomical difference highlights not only what these new “competitors” have to offer, but also how much work needs to be done for Ethereum on the scalability front. There have been other local developments that have contributed to the momentum of Solana’s blockchain and SOL token. Solana, for example, announced the launch of a unique game metaverse Star Atlas that is expected to expand the NFT universe on the platform.
George Harrap: We believe that the most exciting blockchain on the market is Solana
Prior to that, its ecosystem also announced Solstarter, the first IDO platform for Solana. Finally, the project also integrated Raydium, a feature described as “an avenue for the evolution of DeFi” and also offers lightning-fast swap. These are developments that will only add to and enhance Solana’s reputation as a blockchain, especially if large networks such as Ethereum continue to face congestion and scalability issues.
At the moment, the possibility of the altcoin project replacing Ethereum seems unlikely, according to experts. However, such predictions could change quickly if the status quo continues over the next few months. Projects and tokens built on this also see a return, and Step Finance’s STEP is the most important example. Step, a data aggregator for the Solana ecosystem, saw the market value rise sharply above $ 100 million within 2 days of launch, before the corrections inevitably kick in. George Harrap from Step Finance makes the following statement on the subject:
We believe DeFi will be multi-chain and Solana is the most fluid and exciting blockchain on the market.
Jibin George: Popular altcoin project SOL can do more!
SOL has seen an increase of 3,200% in the last 4 months. According to popular analyst Jibin George, at the time of the press, technical indicators are still flashing, with bullish signals still flashing, showing that more rises in the charts are more likely than ever. According to Jibin George, if Solana fulfills his promises and gets more projects and users, there will be only one direction to go for both Blockchain and altcoin.