The cryptocurrency linked to the Solana network has jumped to seventh place in the top 10 largest virtual coins in the world amid optimism that the blockchain could be a competitor to Ethereum in the long run.
Solana’s SOL token has tripled in about three weeks and now has a market value of more than $41 billion (approximately Rs. 2,99,640 crores), according to CoinGecko. Proponents praise the claimed speed and lower transaction costs on Solana for decentralized finance and digital collectibles, applications where Ethereum dominates. The ether price in India was Rs. 2.97 lakhs from 5:30pm IST on Sept 6.
“Solana has a growing ecosystem, projects are being built on it and it has benefited immensely from the mania that is happening in NFTs,” Antoni Trenchev, co-founder at cryptocurrency lender Nexo, wrote in an email. NFTs are non-replaceable tokens used to trade digital collectibles. He said the support of crypto figure Sam Bankman-Fried – chief executive of crypto exchange FTX – is helping.
Solana bills itself as the world’s fastest blockchain and according to the website, the average cost per transaction is $0.00025 (about Rs. 0.018). In June, it announced it had raised $314 million (approximately Rs. 2,290 crores) in a funding round with investors including Bankman-Fried’s Alameda Research, venture capital firm Andreessen Horowitz, Polychain Capital and CoinShares.
Late last month, Jump Trading-affiliated crypto market data provider Pyth Network went live on Solana’s mainnet, a development expected to help power the world of decentralized finance. There are plans to broadcast market data soon via the so-called Wormhole Network.
“It is getting too big to ignore and offers a different smart contract solution than Ethereum,” Jonathan Cheesman, head of over-the-counter and institutional sales at FTX, wrote in an email.
So-called alternative coins such as Solana’s SOL, Cardano’s ADA and Binance Coin have soared in recent weeks, garnering some of the attention from the top tokens Bitcoin and Ether in a broad crypto revival from a defeat in May. Bitcoin has also risen, reaching close to $52,000 (about Rs. 38 lakhs) on Monday. Cardano price in India was Rs. 216, the Bitcoin price in India was Rs. 39.06 lakhs from 5.30pm IST on 6th September.
Skeptics argue that the technological upgrades propelling some tokens may not justify the scale of the rallies.
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