Solana SOL/USD is now the sixth-largest crypto based on market cap after a long period of staggering growth.
What Happened: According to CoinMarkerketCap data, Solana is one of the few coins that swims upstream and shows a price increase of about 10% over the last 24 hours despite Bitcoin BTC/USD and nearly all of the broader market slumping down. It's trading at $171 after having tripled in about three weeks.
Bloomberg notes in a recent article that Antoni Trenchev, co-founder at crypto lender Nexo, said "Solana has a growing ecosystem, projects are being built on it and it’s benefited hugely from the mania that’s taking place in NFTs."
A sales trader at U.K.-based digital asset broker GlobalBlock similarly said that "major players in the space, such as FTX and Jump, are recognizing its potential" while FTX CEO Sam Bankman-Fried backing Solana helps further. She concluded that "SOL’s current price rally is likely to continue.”
Solana claims to be the world's fastest blockchain and — much like Ethereum ETH/USD — it supports the complex smart contracts necessary to host decentralized exchanges and decentralized finance protocols. Its much faster and cheaper transactions compared to Ethereum make it a tempting choice for developers looking to launch their decentralized applications.
The head of over-the-counter and institutional sales at FTX highlighted that Solana is "becoming too big to ignore and offers a different smart contract solution to Ethereum."
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