Solana, which is a decentralized blockchain built to enable scalable, user-friendly apps for the world, is going wildly popular. Since July, the price of SOL skyrocketed insanely that traders started to call the season Solana summer.
Soaring more than 15,000% this year alone, SOL which serves as the native token of the Solana platform, hit an all-time high today at $245.69 this morning taking over Tether (USDT) as the fourth-largest cryptocurrency by market cap.
Having one of the most impressive price charts this year and taking the crypto world by storm, SOL is one of the trending coins now. That being said, here are 3 reasons driving SOL's price high:
3 Reasons Pushed Solana Price Higher
1. Solana Moved into NFT
Solana took the incentive to foray into NFT in a partnership with Degenerate Apes. The sales hit nearly $500 million in three months alone. Of course, all of those NFT sales needs the usage of SOL, thus pushing the price higher.
2. Developers Favorite Blockchain
Considered to be "a potential long-term rival for Ethereum" by Bloomberg and being highlighted by The World Economic Forum, Solana has lured a wide range of developers who were looking for an alternative for the first programmable blockchain due to its congestion and high fees. This migration of projects drove the adoption of SOL securing its spot among the top tier coins.
3. Speed and Low Transaction Fees
SOL has enamored the crypto sphere with its rock-bottom transaction fees thus rapidly expanding fan base every day available especially that it's available on most top cryptocurrency apps and exchanges.
Considered one of the fastest cryptocurrencies, Solana can process at least 50,000 transactions per second (TPS) at a cost of less than $0.01 per transaction, while Ethereum process only 15 to 45 TPS.
Disclaimer: The Cryptocurrency market is considered highly speculative, risky, and largely unregulated. Anyone mulling investing in it should be aware there's a risk of losing their entire investment.
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