With Ethereum (ETH) completing its long-awaited transition to proof of stake, Solana (SOL) is gaining momentum. TThe 9th most popular cryptocurrency gained 3.46% in the past 24 hours and trading in $34.41 USD At the time of writing.
On September 13, the price of SOL rose more than 4% to $39. It was the highest peak in three weeks. Solana’s dominant uptrend has seen prices rise 30% in the past two weeks.
In comparison, Bitcoin and Ethereum have underperformed, posting gains of 16% and 22% in the same period. Solana was once called the “Ethereum Killer,” and this is what happened.
NFT Boom on Solana Network
Solana’s network is getting attention from the NFT community. according to Cryptoslam.ioIn the last 24 hours, the NFT sales volume on the Solana blockchain increased by 24.62%.
Solana’s NFT ecosystem has grown significantly in a short period of time. The network had only 77.79K at the start of the month, but Solana NFT reached an all-time high of 300,000 on Sept 7. same period.
Notably, the sales volume in NFT markets such as OpenSea, Metaplex and Magic Eden exceeded 1.2 million sols ($42.8 million). according to CryptoCompare Reportdevelopment activity on the Solana network increased this year, with “the total number of contributors to GitHub growing by 40.9%, while the total number of contributions increasing by 14.8%.”
Attention of institutional investors
Institutional investors continue to bet on products that provide exposure to Solana’s cryptocurrency.
Earlier this month, institutional investors lowered their bets on Bitcoin and Ethereum-based financial products while expanding their exposure to other currencies, including Solana.
Products with Solana saw $500,000 in inflows, while products with exposure to Ripple (XRP) received $200,000.
Helium for Solana Blockchain Use
Earlier, the lead developers behind Helium Network published a governance proposal to move to the Solana blockchain from its original chain on August 30.
Helium network enables users to become hotspots to provide 5G decentralized wireless network coverage. Helium developers claimed that Solana is well suited for increasing operational efficiency and scalability.
on the flip side
- Some experts speculate that merging Ethereum (ETH) and moving to a Proof of Stake will not help the network outperform the Solana blockchain. Solana offers fast and cheap transactions, which makes it a very attractive option for the NFT community.
- The increase in Solana’s operations seemed to be an unusually bright light in the NFT industry, which has seen a decline in demand in recent months. For example, the volume of trade in the largest NFT platform, OpenSea, has decreased significantly.
- Solana’s network has been experiencing all kinds of problems in recent months: attacks, congestion, and downtime, which have led to a drop in blockchain performance.
Why should you care
While Solana has yet to keep pace with Ethereum, it has recently seen widespread adoption. Solana has attracted many NFTs and game developers.
Low-cost transactions and fast processing rates can explain this pattern. Despite frequent network outages, blockchain activity has increased by 311%. The latest move will increase Solana’s popularity in the market as it strives to climb the charts on all fronts.
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