The value of Solana’s SOL token has soared this year, gaining global attention as it outperforms many other digital currencies.
The cryptocurrency, which serves as the Solana platform’s native token, reached a high of $248.01 around 9 p.m. ET, surpassing both Cardano and Tether due to increased demand for the SOL token.
One of the main reasons of Solana’s growth is users looking for Ethereum alternatives. Solana has gained a substantial amount of market share since its launch in 2017, despite the fact that Ethereum is the world’s second largest cryptocurrency, was the first to incorporate smart contracts, and has the first mover advantage.
Solana uses a combination of proof-of-stake (PoS) and proof-of-history (PoH) consensus techniques to improve performance and scalability. As a result, the network claims to be able to process 50,000 transactions per second (TPS), making it the fastest blockchain in the world.
There are approximately 350 initiatives in Solana’s ecosystem including decentralized finance (DeFi) apps that provide free financial services without the need for an intermediary, non-fungible token (NFT) activities, gaming apps, and more.
Solana’s fight for a top-five cryptocurrency slot comes on the heels of SOL’s resurgent upside strength as the year progressed into the fourth and final quarters of 2021. Its current market capitalization is around $72 billion.