Sol, the Solana crypto token is lately capturing the attention of cryptocurrency investors around the world. The seventh-largest digital currency by market capitalization is on a growing trend that has accelerated in recent hours. According to data from portals such as CoinMarketCap, its market capitalization currently exceeds €38.5 billion, surpassing the popular Dogecoin cryptocurrency, which moves more than €33.8 billion.
Why did Solana Grow so much and so quickly?
The cryptocurrency has appreciated by more than 4,400% in just one year. Solana’s recent gains appear to drive from the enthusiasm around decentralized financial initiatives.
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In addition, Solana has announced an event called “Ignition,” a global hackathon that will attract talent and ideas to Solana’s public blockchain to fuel its growth and will hand out more than $5 million in rewards from sponsors such as Microsoft.
There are several opinions lately about this young cryptocurrency. Veteran investor David Gokhshtein says that if someone wants Web 3.0, they should look at Solana, which he believes is highly under valued.
Big Names Appreciating Solana Crypto
Investment bank Goldman Sachs pointed out that Solana is one of Ethereum’s competitors and has the fastest public blockchain. They also noted that it is cheaper and easier for developers to use.
However, its ecosystem is very small. Analysts predict that the more developers use its blockchain, the more it will grow and improve. The Solana project was born in 2017. One of the essential innovations brought by Solana is the proof of history, a consensus developed by Anatoly Yakovenko. It allows for greater scalability of the protocol, which in turn increases ease of use.
It is claimed that the above reasons attracted small users and companies as well as institutional investors. Solana is well known in the cryptocurrency market due to the incredibly short processing times offered by the blockchain. Solana’s hybrid protocol makes it possible to significantly reduce validation times for both transactions and smart contract execution.
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