Solana Leads Altcoins Rally with Unmatched Price Jumps
Solana leads the altcoins rally, up about 30% this week already as it extends its exceptional gains, according to market data, confirmed by analysts’ reviews after the digital asset outflank Dogecoin as the 7th largest by market capitalisation. The digital asset is now priced at $173, which rivals Ethereum in terms of performance.
Solana, after the massive uptrend recorded now among the top 10 cryptoassets by valuation in a new rally that pushes total market capitalisation of cryptocurrencies above $2 trillion with Bitcoin maintaining dominance despite price corrections seen lately.
“If the action keeps up, the coin could even overtake XRP”, crypto analysts predicted in a forum on the Tradingview platform on Tuesday.
“Solana is on fire, scorching the bears as prices continue to race up – August saw gains of 194% and September has already seen another 66% increase as of Tuesday morning trading.
“The previously little-known coin has made a name for itself this year, starting 2021 at $1.51 and reaching highs of $195 on Tuesday morning, and is now creeping up to take the place of popular XRP (XRPUSD) as the sixth-biggest cryptocurrency”.
Solana now boats a market cap of over $51 billion, only $9 billion behind Ripple’s native token. JPMorgan Managing Director Nikolaos Panigirtzoglou noted that “The August rally in non-fungible tokens and the pickup in decentralized finance activity have helped not only Ethereum but also alternative cryptocurrencies that facilitate or plan to facilitate smart contracts, such as Solana, Binance Coin and Cardano.
“The previous phase of retail investors’ mania into cryptocurrency markets was between the beginning of January and mid-May… and retail investors are making cryptocurrency markets look frothy again”.
The crypto market jumped to a value of around $2.3 trillion on Monday, its highest level since early May.
MarketForces Africa crypto analysts team had reported Solana has been having a pretty sweet month, defying the crypto market crash to reach an all-time high of US$58.30 on May 18 and staying steady around $30-35 ever since.
The cryptoasset is an increasingly popular alternative to Ethereum, and it’s seen a meteoric rise this year, rallying over 300% on the back of the growing DeFi and non-fungible token (NFT) movements.
The Solana protocol, and its native currency, were released in March 2020 and SOL has since quickly made a name for itself in the crypto world because of the super quick processing times the blockchain offers.
It is built to facilitate decentralized app creation and support DeFi, meaning that as the Ethereum network gets more clogged up and transaction fees go up, people have found Solana a perfect alternative – leading not only to a 3000% increase in price, but a return on investment of 21,055.73% since its inception.
The gains are on a similar level to joke currency Dogecoin, but the difference is that Solana has been paying much more attention to development and utility to make the most of its growth, analysts said.
By May this year, Solana had received five strategic investments totalling $100 million to accelerate the growth and development of projects in its blockchain and to build out the blockchain for the Asian market.
Ethereum is expensive to use — sometimes prohibitively so. Simple transfers may run upwards of $6-8 on a good day, while complicated DeFi transactions can cost upwards of four figures.
In contrast, the Solana network charges extremely low fees — often less than $0.10 — per action, which are also extremely fast.
Read Also: DeFi Market Size Plunge 45% to Below $48 Billion
Therefore, it’s really the speed and scalability of Solana as an alternative to Ethereum that is driving its growth, as many adopters and users are currently viewing the state of Solana’s DeFi today to that of Ethereum’s in the start of last year’s ‘DeFi Summer.’
Solana Leads Altcoins Rally with Unmatched Price Jumps
