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- According to Forbes, Solana has lately risen to become the world’s eighth-largest cryptocurrency
- Dogecoin, promoted by billionaire Elon Musk, is usually the first name that comes to mind when people think of altcoins
- Solana is a programmable blockchain, similar to Ethereum, that may be used to execute a variety of decentralized financial processes
Most people are familiar with Bitcoin and Ethereum, the two most popular cryptocurrencies, with market capitalizations of more than $896 billion and $414 billion, respectively, according to CoinMarketCap. Dogecoin, promoted by billionaire Elon Musk, is usually the first name that comes to mind when people think of altcoins.
However, according to Forbes, another altcoin, Solana, has lately risen to become the world’s eighth-largest cryptocurrency. According to Forbes, Solana rose 10% on Monday and another 30% on Tuesday, bringing its price to about $130 per coin and bringing its market valuation close to $40 billion.
According to coinmarketcap data, Solana has slipped back down to $111 by Tuesday evening, which is still near its all-time high and a far cry from its mid-June price of the mid-$30s. According to Fast Company, the coin has increased by 275 percent since August 1 and by more than 2,348 percent since the beginning of the year. The cryptocurrency has only been around for 18 months.
So, what exactly is Solana?
Solana is a programmable blockchain that can handle several decentralized finance activities, comparable to Ethereum. Unlike Bitcoin, which is a non-programmable blockchain, Solana and Ethereum allow for the storage of smart contracts, which can be programmed to only carry out transactions if certain conditions are met. The decentralized blockchain network, as a programmable system, allows users to swap not only SOL coins but also non-fungible tokens and other digital assets.
What Caused Solana’s Price to Soar?
The rapid expansion of Solana may have been aided by the growth of NFTs, particularly Visa’s investment in digital artwork last week and celebrity collectors’ intense interest in NFTs.
According to Forbes, Solana launched a global hackathon yesterday, which will run until Oct. 8. On the Solana blockchain, the challenge encourages technology innovators to invent and develop blockchain-based games, art, and collectibles, as well as decentralized lending solutions.
Solana, Ethereum, or Bitcoin: Which Should You Invest In?
Solana and other altcoins may be pulling market share and investment money away from Bitcoin, despite the fact that it is seen as a direct competitor to the Ethereum blockchain. Bitcoin lost $2.8 million in mid-August, according to a CoinShares report released on Monday. Ethereum only made a $3.2 million profit, whereas Solana made a $7 million profit from crypto investors.
Solana could be a promising technology and investment. Solana is faster than Ethereum, according to The Motley Fool, handling 50,000 transactions per second or more, compared to Ethereum’s 15 to 45 TPS pace.
Bitcoin is on its approach to becoming accepted as a currency that may be used in place of fiat money in some businesses, most notably by Palantir, a big data analytics software firm founded by Peter Thiel. For long-term investors, this offers the top crypto an advantage.
However, as NFTs and smart contracts become more common, programmable blockchain platforms like Ethereum and Solana have a promising future in the market. Although Ethereum has the advantage of being the first, Solana may prove to be faster and more efficient.
A diverse portfolio, which contains not only numerous trustworthy cryptocurrencies but also equities, funds, and other assets, will be a safer decision than investing all of your money into one property, as with any investment.
Holders of Ethereum, Solana, Bitcoin, Doge, and other cryptocurrencies may be able to thrive as long as crypto continues to expand. Cryptocurrencies, on the other hand, are quite volatile, so think of them as long-term investments and be aware of your own risk tolerance. Don’t put more money into it than you can afford to lose.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
