Cryptocurrency markets are waking up this morning after the crash, with Bitcoin (BTC) briefly touching $ 45,000 and altcoins losing some of the gains accrued over the month. Solana (SOL) is however one of the exceptions, with an increase which has been noted in recent days. How is it explained?
Solana’s SOL price progresses
Over the last 24 hours, the main altcoins are looking grim. Ether (ETH) thus loses -2%, Binance Coin (BNB) falls by -1%, and Polkadot (DOT) loses -4%. Only a few rare cryptocurrencies are in the green over this period, and Solana’s SOL is one of them. It even shows a significant increase: + 15% over the last 24 hours .
Its latest breakthrough began on February 22, and took it to a new all-time high, over $ 16.4. This corresponds to an increase of + 76% in less than two days:
Why is the price of SOL climbing so much?
How to explain this breakthrough, in a rather gloomy context for other altcoins? As often, the answer comes from decentralized finance (DeFi) . On February 22, Solana’s first market maker and automated liquidity provider was launched. Called Raydium, it allows faster trades, and intends to become a central piece of Solana, according to the project site :
“The protocol acts as a bridge for projects wishing to extend to Solana and Serum. Raydium and the RAY token will at the same time become a basis for future developments with partners. “
Ethereum in the crosshairs
This development allows Solana to position itself even more as a viable alternative to Ethereum, whose transaction costs have reached unprecedented levels. As proof of this enthusiasm, a proposal was recently published on Sushiswap to integrate Solana.
In any case, this shows that alternatives to Ethereum are progressing at the moment. Still entangled in its scalability issues, Ethereum clings to its status as the first blockchain of this type. But this advantage is starting to fade in the face of other more scalable and less expensive alternatives. It will therefore be necessary to see whether competing projects really manage to threaten the first smart contracts platform in the coming months.