The advent of institutional investors and the rise of decentralized finance (DeFi) has been an incredible boon to the entire cryptocurrency industry, but it has also revealed some of the ongoing limitations that many blockchain networks face when faced with fluctuations in activity and the need to scale. .
High costs and slower transaction times on the Ethereum (ETH) network have left the door open for new layer 1 solutions, and Solana (SOL) is one such project that is gaining popularity in recent times.
Data from Cointelegraph Markets and TradingView shows that the price of SOL is up 195% in the last month, from a low of $ 12.19 on March 26 to a new high of $ 36.10 on April 19 at a high of $ 1.4 billion in trade volume. .
Similar to how Ethereum gained prominence in 2017, Solana’s strong performance over the past month was fueled by the launch of multiple projects on the SOL blockchain featuring everything from legit DeFi protocols to pump and dump airdrops bringing speculators to Solana’s exchange.
Amazed at the growth of @solana ecosystem.
– Solanians ☀️ (@solanians_) March 23, 2021
Fast transactions and low costs entice developers
One of the biggest advantages to the Solana network is its claim that it can process 65,500 transactions per second (TPS), which is significantly faster than Ethereum’s current average of 18.3.
The network’s ability to handle a greater load has also made the platform a cross-chain destination for projects such as Civic (CVC) and the popular stablecoins USD Coin (USDC) and Tether (USDT).
DeFi platforms such as Raydium and Serum have launched on Solana and there is a growing list of projects transitioning to the network.
The outlook for the network got a new boost in early April when the Solana-based Sollet wallet released the Chrome extension that provides the Solana ecosystem functionality that matches the way MetaMask works for Ethereum.
Simple yield options attract DeFi users
The Solana protocol uses a proof-of-history (PoH) consensus combined with the blockchain’s underlying proof-of-stake (PoS) consensus, making it easy for token holders to make a return on their SOL tokens while also participating in the network.
The number of cryptocurrency wallets that SOL supports is also a sign that the project is attracting more attention. To date, Exodus, Ledger, and Blockfolio are some of the more prominent wallets that support the token.
Preparing for the rise of @solana
Top wallets support SPL token in the ecosystem pic.twitter.com/3b2kmvUCwJ
– Solanians ☀️ (@solanians_) April 8, 2021
A recent integration the Phantom wallet has also brought new energy to the project as it enables the creation of a robust NFT ecosystem on Solana. This brings one of the most popular sectors of the crypto market to the network.
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