The arrival of institutional investors and the rise of decentralized finance (DeFi) has been an incredible boon for the entire cryptocurrency sector but it has also highlighted a number of persistent limitations that many blockchain networks encounter when faced with surges in activity and the need to scale.
High fees and slower transaction times on the Ethereum (ETH) network have left the door open for new layer-1 solutions to emerge, and Solana (SOL) is one such project that has been gaining traction lately.
Data from Cointelegraph Markets and TradingView shows that the price of SOL has increased 195% over the past month, rallying from a low of $12.19 on March 26 to a new all-time high of $36.10 on April 19th on a record $1.4 billion in trading volume.
Similar to how Ethereum rose to prominence in 2017, Solana’s strong performance in the past month was sparked by the launch of multiple projects on the SOL blockchain with everything from legitimate DeFi protocols to pump and dump airdrops that brought speculators to Solana’s exchange.
Amazed by the growth of @solana ecosystem.
— Solanians ☀️ (@solanians_) March 23, 2021
Fast transactions and low fees entice developers
One of the biggest draws for the Solana network is its claim of being able to process 65,500 transactions per second (TPS), which is significantly faster than Ethereum’s current average of 18.3.
DeFi platforms like Raydium and Serum have launched on Solana and there is a growing list of projects in the process of transitioning to the network.
Prospects for the network…