Ethereum’s Rival Solana On-boarded The BTC Wave To Gain 8%

Ethereum’s rival Solana joined the Bitcoin wave as of late and gained 8% with both coins making record prices this week as we saw in our altcoin news previously.

Solana was not ready to let Bitcoin and Ethereum enjoy all the fun as the coin is making its way to a new all-time high. SOL is the sixth biggest crypto by market cap and it is up 27% over the past week and more than 8% in the past day as it goes back to its record territory that it hit last month. It is now trading at $188.25 which is 12% off its ATH of $213 that was set in September. Most of the gains can be attributed to Solana’s pursuit of a bigger place of Defi market that originated on Ethereum. DeFi refers to the protocols built on the blockchain that allows people to put their crypto to work without having to go to a third party. Users can loan funds, earn interest, swap tokens and make other financial transactions on a person-to-person basis.

Solana recorded $12.7 billion in total value locked on the network and the metric shows how much money is flowing on the Solana-based platforms. This number impacts the price of SOL as you also need the coin to utilize its Defi ecosystem from decentralized exchanges like Serum and Raydium to yield the generator Marinade. Solana’s value proposition is that it is just faster than ETH making it able to handle about 15 transactions per second. Ethereum’s Rival Solana was praised by the community and the ETH critics contend that it will not cut it as every bid on an NFT and each purchase on the network that competes for priority. As a result, the average transaction fee stands at above $30 according to the data from BitInfoCharts.

This is because Ethereum was not designed with a specific use case in mind. Buteirn wanted to allow a broad set of applications to take the root on the network and on the contrary, Solana set its eyes on Defi because it is able to handle more transactions that make the entire space faster. Ethereum remains an even more decentralized network in terms of the machines connected to the network while Solana experienced a huge outage last month due to issues with network validators that only suggest that is high price and low transaction costs are coming at a cost.