New kid on the blockSolana has been having a pretty sweet month, defying the crypto market crash to reach an all-time high of US$58.30 on May 18 and staying steady around $30-35 ever since.
Solana is an increasingly popular alternative to Ethereum, and it's seen a meteoric rise this year, rallying over 300% on the back of the growing DeFi and non-fungible token (NFT) movements.
The Solana protocol, and its native currency, were released in March 2020 and SOL has since quickly made a name for itself in the crypto world because of the super quick processing times the blockchain offers. Solana is built to facilitate decentralized app creation and support DeFi, meaning that as the Ethereum network gets more clogged up and transaction fees go up, people have found Solana a perfect alternative – leading not only to a 3000% increase in price, but a return on investment of 21,055.73% since its inception.
The gains are on a similar level to joke currency Dogecoin, but the difference is that Solana has been paying much more attention to development and utility to make the most of its growth. By May this year, Solana had received five strategic investments totaling $100 million to accelerate the growth and development of projects in its blockchain, and to build out the blockchain for the Asian market.
said Adam James, senior content editor at OKEx’s research arm OKEx Insights.