Solana (SOL) Is on Fire: This Is What Happened

As the Ethereum (ETH) finished the long-anticipated transition to Proof-of-Stake, Solana (SOL) gained momentum. The 9th most popular cryptocurrency gained 3.46% in the past 24 hours and trades at $34.41 at the time of writing. 

On September 13, SOL’s price gained over 4% to $39. It was the highest peak in three weeks. Solana’s prevailing uptrend has seen its price gain 30% in the past two weeks.

In comparison, Bitcoin and Ethereum underperformed, securing 16% and 22% gains in the same period. Once called the “Ethereum killer,” Solana is growing, and this is what happened.

Solana Price

NFT Boom on Solana’s Network

Solana’s Network is gaining attention from the NFT community. According to Cryptoslam.io, NFT sales volume in the past 24 hours on the Solana blockchain was up 24.62%.

Solana’s NFT ecosystem has grown significantly in a short period of time. The network had just 77.79k mints at the start of the month, but Solana NFT mints reached an all-time high of 300,000 on September 7. That is further accompanied by a rise in NFT transactions, hitting a record high of over 1 million in the same period.

Notably, sales volume on NFT markets like OpenSea, Metaplex, and Magic Eden exceeded 1.2 million SOL ($42.8 million). According to CryptoCompare’s report, development activity on the Solana network has increased this year, with the “overall number of GitHub contributors growing by 40.9%, while total contributions increased by 14.8%.”

Solana Price

Attention from Institutional Investors

Institutional investors continue to bet on products that provide exposure to the Solana cryptocurrency.

Earlier this month, institutional investors cut their bets on Bitcoin and Ethereum-based financial products while expanding their exposure to other altcoins, including Solana.

Products with Solana saw $500,000 in inflows, while products with Ripple (XRP) exposure received $200,000.

Helium to Use Solana Blockchain

Earlier, major developers behind the Helium Network published a governance proposal to transition to the Solana blockchain from its original chain on August 30.

Helium Network enables users to become hotspots to provide decentralized wireless 5G network coverage. The Helium developers claimed Solana is a good fit to increase operational efficiency and scalability.

On the Flipside

  • Some experts predict that the Ethereum (ETH) merge and moving to Proof of Stake will not help the network to outperform Solana’s blockchain. Solana offers fast and cheap transactions, which makes it a very attractive choice for the NFT community. 
  • The increase in Solana’s operations looked to be an unusually bright light in the NFT industry, which has been experiencing decreasing demand in recent months. For example, the trade volume at the largest NFT platform, OpenSea, has dropped dramatically.
  • Solana’s Network has suffered all kinds of problems in recent months: attacks, congestion, and stoppages, which have decreased the performance of its blockchain. 

Why You Should Care

While Solana is not yet on pace with Ethereum, it has recently seen widespread adoption. Solana has attracted many NFTs and game developers.

Low-cost transactions and fast processing rates can explain this pattern. Despite repeated network disruptions, blockchain activity has surged by 311%. The latest drive will increase Solana’s market prominence as it strives to climb the charts on all fronts.

Read more about Solana’s (SOL) rough 2022:

Number of Solana (SOL) Transactions Approaches 100 Billion Despite Rough 2022

Read more, about how Solana’s CEO addressed the network outages:

Solana CEO Says Network Outages Have Been The ‘Curse’ Of Low-Cost Transactions

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Paulina is a writer, reporter, and digital craftswoman. Her educational background extends from anthropology to IT & multimedia. She has experience working with tech startups, as well as mastering the craft of journalism. At DailyCoin, Paulina focuses on the world of metaverses, NFT marketplaces, NFT art, and blockchains backing NFT technology.