Solana (SOL/USD) has bucked the trend and is trading at its all-time high. The coin has jumped by more than 20% in the past 24 hours even as most cryptocurrencies lag. This rally brings its total market capitalisation to more than $61 billion, making it the sixth biggest cryptocurrency in the world. Along the way, it has passed other popular coins like Ripple, Dogecoin, and Polkadot.
Solana demand rises
Solana is a fast-growing technology platform that enables developers to build decentralized apps (DAPPs) and decentralized autonomous organizations (DAO). The platform was launched in 2018 and is a direct competitor to Ethereum, the second-biggest cryptocurrency in the world.
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Solana does everything Ethereum does in a better and more efficient manner. For one, unlike Ethereum, Solana is built from scratch using the proof-of-stake concept. This makes it a more efficient network than Ethereum, which, like Bitcoin uses the proof-of-work concept.
Solana-built apps are also blazingly faster than Ethereum. It can process more than 2,000 transactions per second compared to Ethereum, which can only process less than 20.
As a result, many developers have switched to Solana’s ecosystem. There are now more than 400 apps built on the network. And most importantly, the total value locked (TVL) of all DeFi projects in the ecosystem has jumped to more than $3 billion. While this is significantly lower than Ethereum’s TVL of more than $90 billion, it is growing at a relatively faster rate.
Solana price is also rising because of the Fear of Missing Out (FOMO) as investors seek to hold the next key Ethereum rival. Other platforms that have done well during this crypto meltdown are Near Protocol and Algorand.
Solana price prediction
The daily chart shows that the SOL price has been in a strong bullish trend in the past few weeks. Indeed, the coin’s price has jumped by almost 500% in the past 30 days. It has risen by more than 11,000% this year alone, making it one of the best-performing assets in the world.
The SOL price got supercharged after it crossed the key resistance level at $60, which was the highest level on May 18th. It has also risen to the key psychological level of $200.
Therefore, while Solana will likely continue the bullish momentum, there is a likelihood that it will have a pullback as some bulls start taking profit.
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