Solana (SOL) Following Cardano (ADA) Is About to Compete With Ethereum (ETH)

Solana (SOL) Following Cardano (ADA) Is About to Compete With Ethereum (ETH)

Source: Shutterstock

Amid the stagnation of leading cryptocurrencies, the Solana token (SOL) is attracting traders and investors with double-digit growth rates. By the way, SOL is also more attractive than the Cardano token ADA, which may have already reached its growth limit on the eve of the Alonzo update launch.

Since the beginning of the year, Solana (SOL) has grown more than 5 times, from a price of about $2 in January to more than $100 today. The two waves of growth coincide with the general rally in the market. From the end of March to mid-May, the SOL token rose in price from $13.5 to over $54. Since the end of July, the SOL price has increased from $22.21 on July 20 to $78.68 on August 21.

Now the third wave of growth has begun, which can lead Solana (SOL) to the seventh place in terms of capitalization in the Coinmarketcap rating, occupied by Elon Musk’s favorite cryptocurrency Dogecoin (DOGE).

Solano is a fast blockchain powered by the Proof-of-Stake consensus algorithm in conjunction with the Proof-of-History algorithm. The network has a performance from 50K to 65K TPS and therefore attracts developers of DeFi projects. However, according to the research firm Glassnode, Solana cannot yet compete with Ethereum in the DeFi field. Glassnode’s recently published report states:

– There are five projects in the Solana DeFi space which have more than $100M TVL [total value locked]. For comparison, Ethereum boasts over 60 projects with more than $100M TVL.

A promising project that couldn’t be a rival for Ethereum for the foreseeable future – this is the assessment of Glassnode. However, institutional investors think differently. They invest in Solana in the early stages of its development to make a profit after the SOL price increases.

A new wave of interest in Solana is associated with the launch of the Apricot Finance DeFi testnet, built on the Solana blockchain. It is a lending and yield farming platform that promises cool terms for investors.

Most recently, Apricot Finance completed the final round of fundraising and raised $4 million. The launch of the Apricot Finance mainnet has been announced for September. The Apricot Finance team has repeated several times that they are delighted with the Solana blockchain.

According to experts, using the Proof-of-History algorithm can really be a big step in the development of the cryptocurrency industry. This decision affects network performance by eliminating the need for timing coordination between validators. Therefore, the possibilities for scaling the network and attracting more users are expanding. This, in turn, promises an increase in the price of the native token SOL.