It has been another awesome week in the crypto market! Most coins are green. This bullish trend began when Bitcoin started to ascend into uncharted territories. Bitcoin hit an all-time high of $66,930 on October 20, prompting analysts to predict a massive bull market.
The price movement of the leading cryptocurrency usually controls the crypto market due to its market dominance. Solana (SOL) is one of the 'altcoins' that has benefited from this favourable market conditions. The price of the SOL token reached a new all-time high of $219 on October 25, 2021.
What's Solana?
Solana is a blockchain platform founded in 2017 by Anatoly Yakovenko. It is regarded as one of the fastest blockchain platforms and has become popular among developers. Compared to Ethereum transactions made on Solana are faster and cheaper.
Solana’s SOL token has been on fire lately and has recorded a price increase of 12,274%. This means that if you bought $100 worth of SOL in January, it would currently be worth $12,274.
Reasons for the pump in price: According to experts, this latest rise in the price of SOL could be attributed to several reasons.
A Fast-growing DeFi ecosystem: Solana has become a major player in the DeFi sector, with the total value locked into DeFi projects built on Solana hitting $13 billion.
Legitimate rival to Ethereum: Solana is seen by many as an alternative to Ethereum. Developers have trooped to the blockchain since it provides most of the features that Ethereum has been promising for years, including low transaction costs, proof-of-stake, and faster transaction times.
Bottom Line: Solana is firmly placed within the crypto market and is currently ranked 6th on the coin rankings based on market capitalization. The rapid rise of the SOL token is another example of the highly volatile nature of the crypto market.