Solana Ecosystem (SOL) continues to see tremendous growth in the market. SOL price hit another record high on Sunday, November 7th, as is Link $260.06. Its price has increased by almost 17,500% since the beginning of the year – from 1.51 USD. SOL has surpassed Cardano (ADA) and Tether (USDT) to become the fourth largest cryptocurrency with a market capitalization of $75.4 billion.
Related reading | Is Cardano fighting a losing battle against Solana?
At the time of writing, it is behind Binance Coin (BNB) $109 billion, Ether (ETH) $546 billion, and Bitcoin (BTC) $1.17 trillion. Even though it is close to Ethereum, there is still a huge gap between the two coins.
Meanwhile, the market capitalizations of ADA and USDT were $67.1 billion and $74.4 billion, respectively.
SOL rises after $100 million investment initiative
Solana’s rise to ATH comes after venture capital arm Solana Ventures, Lightspeed Venture Partners and FTX spearheaded a new investment fund dedicated to web 3 gaming, also known as GameFi. The popularity of web games has risen 3.
Related reading | Solana, FTX and Lightspeed Ventures to Launch $100 Million Web3 Game Fund
The project company intends to increase SOL adoption by attracting desktop and mobile video game developers to build their projects on the public blockchain. With SOL’s recent bullish trend, many are comparing it to the No. 2 cryptocurrency Ethereum.
“Solana is the leading competitor in Ethereum,” Matt Hougan, chief investment officer at Bitwise Asset Management, said. She said to CNBC. “I wouldn’t put all my chips on it, but I’m a huge fan.”
SOL trading at $248.7 | Source: SOLUSD on TradingView.com
One reason for this comparison is that both ETH and SOL have smart contract capabilities. Smart contracts are simply software stored on the blockchain that run when predefined conditions are met. They are important in powering decentralized finance applications and non-fungible tokens.
“A lot of the fastest growing applications of crypto technology are built on Ethereum and depend on the Ethereum blockchain to function,” Hogan says. “If you invest in Solana, you are betting that its technological development will help it outpace Ethereum.”
Solana and the NFTs
Industry Data Aggregator NFT CryptoSlam rank Solana is the fourth-best NFT blockchain after Ethereum, Ronin, and Wax in terms of 24-hour sales. Data shows Solana had a record month for secondary NFT sales volume during September totaling $189.4 million.
Related reading | Why billionaire Chamath Palihapitiya invested in Solana ecosystem
Secondary sales for Solana-based NFTs have reached nearly $500 million since the beginning of August.
The largest set of NFTs on the blockchain is the Degen Ape Academy Chain of Monkey Digital Collectibles. So far, the Mitten Monkey Academy has sold monkey NFTs worth about 986,300 soul.
Mason Nystrom, Messari Research Analyst, notes how fast the blockchain has grown to become one of the best NFT blockchains in just a few months.
While Solana displays promising metrics at unique addresses (buyers and sellers) and a lower average NFT selling price, Ethereum still dwarfs Solana in total secondary NFT volumes.
With that said, Solana became one of the top NFT blockchains with secondary trading in just months. pic.twitter.com/9HfOp7IRut
– Masonnystrom (@masonnystrom) November 2, 2021
He also noted that as of November 1, Solana’s secondary NFT sales have reached $500 million in just three months.
Featured image by CNBC, Chart from TradingView.com