The great competitor of Ethereum ?: the cryptocurrency that has grown more than 9,000% in a year

By November 25, 2021Ethereum
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Solana is currently the fifth largest cryptocurrency in the world by market capitalization.

As the demand for Ethereum has skyrocketed this year, other projects have emerged to internalize to compete with the most widely used blockchain. Among them is the cryptocurrency Solarium (SUN).

Solana, developed by Anatoly Yakovenko, has risen above 9,000% in just one year, according to data from CoinGecko. SOL is currently the fifth largest cryptocurrency in the world by market capitalization, with a value of more than 62,000 million dollars. In addition, at the beginning of the month it reached its all-time high of $ 259.96 per unit.

The cryptocurrency, whose project was first announced in 2017, debuted in March last year and is already considered a potential long-term competitor to Ethereum, according to Bloomberg. This is because Solana provides much faster and cheaper transactions than Ethereum, which is often overloaded and charges more expensive fees. The average cost per transaction on Solana is $ 0.00025, while Ethereum fees averaged $ 44 last Thursday.

However, Solana is far behind Ethereum in terms of Ethereum network activity. The amount of Ether (Ethereum’s native cryptocurrency) fixed in decentralized financial contracts is about $ 174 billion, while SOL’s is about $ 14.5 billion, according to data from DeFi Llama.

Risks

As with other cryptocurrencies, before investing in Solana you must take into account its volatility. Solana’s rise in a short period of time is one of the risks, because as quickly as it reaches a new all-time high, it could go down again.

In addition, experts have expressed concerns about the decentralization of the ‘blockchain’ after the network suffered a great interruption of more than 17 hours in September, during which time Solana was unable to process any transactions. Its developers blamed the so-called “resource depletion” for what happened, Bloomberg reported.

This Thursday, Ethereum traded at $ 203.91 with a price decrease of 5.9%.

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