‘Ethereum Killer’ Solana has risen by 53% in 1 week
Most cryptocurrencies’ prices went into the red last week, but Solana continues to rise beyond forecasts. At the end of August, we shared with you the opinion of Bill Noble from Token Metrics, who stated that the coin would reach $145. It took five days for the coin to make it there. Now, the forecast from Mercuryo CEO, who expects SOL to go for $500 by the end of the year, can be used as the next target.
Solana’s surge started with the debut of non-fungible tokens (NFTs) when a collection of 10,000 monkeys was sold in eight minutes. Despite a number of mistakes, the network proved its ability to process a large number of transactions in a short period of time. When the project is fully deployed, its throughput will reach 60,000 transactions per second. This is faster than Visa, Ripple, Ethereum and Bitcoin combined.
Solana operates on a proof-of-stake protocol with a unique proof-of-history layer. This allows it to process transactions as they come without waiting for the block to be finalised, giving Solana an edge in speed and transaction costs, which cost less than one cent on average.
Ethereum is still dominant in the NFT and DeFi markets; it has 7,000 nodes and 90,000 validators versus Solana’s 600 nodes and 1,000 validators. However, Ethereum’s high network fees and constantly shifting PoS transition date are forcing start-ups to search for faster blockchains
Thus, DeFi Land has collected $4 million worth of investment to launch a finance game on Solana. DeFi Land teaches users how to interact with the decentralised finance market and earn money on it while playing. This should attract small players, though 60% of DeFi transactions are currently backed by institutional capital.
In the NFT market, Solana is also starting to push Ethereum. According to Nathan Rossa, Solana is better suited for NFTs because it’s cheaper and simpler. The CEO of FTX also claimed on 6 September that they were launching their own platform for NFT operations with support for Solana.
Many have already become tired of waiting for Ethereum to finish its PoS transition. On top of that, there are other blockchains now that don’t start out with limitations that the leading altcoin has. All of this makes us see Mercuryo CEO’s forecast of $500 for Solana by year-end seem reasonable.
The StormGain Analytical Group
(a platform for trading, exchanging and safeguarding cryptocurrencies)