Solana, a decentralized blockchain built to provide scalable, user-friendly applications for the world, is becoming remarkably popular. Since July, the SOL price has experienced a massive rise.
Having one of the most impressive price charts this year and taking the crypto world by storm, SOL is one of the trending cryptocurrencies right now. About a month ago, it was trading only around $160. So what is behind the rally that draws all the attention? Here are 3 reasons that keep SOL’s price high, which has recently set a new ATH (260.06).
3 Reasons That Increase Solana’s Price
1-) Solana Moved to NFT
As it is known, NFTs have gained serious popularity in the crypto industry. New NFT collections and NFT projects are being developed in different cryptocurrency networks. Solana is one of the networks developed in NFT.
Solana entered NFT in partnership with Degenerate Apes and received the incentive bonus. Sales reached nearly $500 million in just three months. Of course, all these NFT sales need SOL usage, thus driving the price higher.
2-) Developers’ Favorite Blockchain
Considered a “potential long-term competitor for Ethereum” by Bloomberg and featured by the World Economic Forum, Solana has attracted a large number of developers seeking an alternative to the first programmable blockchain due to its congestion and high fees.
According to many market experts, SOL has all the features that Ethereum has promised for years. This transition of projects has allowed SOL to adopt and consolidate its position among the top-tier coins.
3-) Speed and Low Transaction Fees
SOL has captivated the crypto market with its lowest transaction fees, so it has a rapidly expanding fan base especially as it is available on top cryptocurrency apps and exchanges.
Considered one of the fastest cryptocurrencies, Solana can process at least 50,000 transactions per second (TPS) for less than $0.01 per transaction, while Ethereum can only process 15 to 45 TPS.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.