Week 16 was painful for the major cryptocurrencies and altcoins, including Bitcoin. Blockchain token SOL Solana, on the other hand, has more than held its own. The price is reaching record highs.
In the previous week, the vast majority of cryptocurrencies were falling sharply, swept away by the downturn in the first of them. The top three crypto-assets, Bitcoin, Ethereum and Binance Coin, lost over 10%.
Two exceptions in the top 20, VET and SOL. Between Friday, April 16 and Friday, April 23, Solana’s token climbed 38%, from €21.54 to €29.99. The opportunity for the blockchain project to enter the top of the rankings in 15th place.
The fall of Bitcoin did have an effect on its price, as it has on all cryptocurrencies. As of April 23, the price was down from $40 to $32. But the SOL quickly returned to growth.
On Friday 23, it ended the day at around 37 dollars. And the recovery continued over the weekend. On Sunday, April 25, the SOL set a new all-time high (ATH) of over $41.
The rally has continued since then. A new ATH was set today, Monday 26 April, at around $48. Recall that a month earlier, the price of SOL was only $14. Over the period, the increase is therefore close to 250%.
The market capitalization of the token now exceeds 12 billion dollars, against 3.7 billion on March 26. Although Solana is presented as a competing project to Ethereum, its growth seems to be correlated to the rival blockchain.
For crypto investor Adam Cochran, Solana has the potential to rank among the top 3 to 5 projects in the industry. And its development could ultimately benefit ETH and BTC.
For Cochran, Solana and Ethereum would also be more complementary than competitive. “Think of it as a computer. Ethereum is a CPU and Solana is a GPU. Both are optimized for different types of operations and states,” he analyzes.
DeFi applications and protocols are indeed looking for remedies to Ethereum’s congestion. And Solana’s proposed solutions are one answer with a TPS (transactions per second) of 65,500.
Several DeFi protocols have also chosen Solano, such as Raydium and Serum, the latest project of the founder of the decentralized exchange FTX. And this ecosystem continues to grow with new applications, including major stablecoins such as USD Coin (USDC) and Tether (USDT).