Solana entered the TOP 8

Solana entered the TOP 8

The unresolved problems of Ethereum have led to the emergence of interesting projects. Correcting the mistakes of their predecessor, they are moving by leaps and bounds. So, Solana grew by more than 200% in August alone and entered the TOP 8.

Smart contracts are in demand due to the boom of the DeFi (decentralized finance) and NFT (non-interchangeable tokens) markets. The vast majority of projects use the Ethereum blockchain, which was not ready for such loads. Commissions on the network have increased again, despite the London hard fork of August 5, which freed the network from the auction mechanism of payment for transactions. We expressed our skepticism at the beginning of the month, unfortunately, it was justified: costs rose to February highs.

High costs and low transaction speed force projects to look for alternative blockchains

One of the most promising is Solana: with an average commission of $0.00025, the peak speed can reach 50 thousand transactions per second, which is a thousand times faster than Bitcoin or Ethereum. This is due to a number of unique solutions, for example, the blockchain uses a proof-of-history component that adds timestamps to each block. A new block is created every 400 ms, whereas for Ethereum it takes 10-15 s. At the same time, all the positive functions of proof-of-stake are preserved, including obtaining passive income through staking.

Two weeks ago, Solana debuted on the NFT market with the launch of the Degenerate Ape Academy collection: 10,000 monkeys were sold in 10 minutes, and the coin jumped in price by 40%. Institutional investors became interested in the success of the cryptocurrency, which is why Osprey registered the Solana Trust fund with the SEC.

Bill Noble, chief analyst at Token Metrics, believes that Solana can only stop the collapse of the cryptocurrency market. Otherwise, the coin will soon reach $145.