The rise of DeFi (Decentralized Finance) and the appearance of institutional investors have caused an unbelievable boom in the whole crypto market but also revealed several persistent issues and limitations that different blockchain networks faced when there is a rapid increase in activities hence the need to scale up.
The excessive time required for processing transactions and hyped network fees on the Ethereum network have opened the door for diverse Layer-1 Network to emerge as solutions, and of such alternative is SOL – Solana, which has been in the limelight lately.
Data from Trading View reveals that there has been an increase in the price of SOL up to 195% in the past few months, having moved from its low $12.19 to a fresh high of $36.10 between March 26 and April 19th with a record trading volume of $1.4 billion.
This move is quite similar to the trend that Ethereum followed to notability in 2017. The substantial performance of SOL in the previous month is owing to the fact that there are launching numerous projects on the Solana blockchain, which are hinged on the Decentralized Finance protocols that pump and dump airdrops which attract people to the SOL exchange.
Low transaction fees and fast experience attracted developers
One of the main hypes for the SOL network is the claim to process about 65,500 transactions in a second (TPS) which is remarkably faster than the ETH transaction per second average of 18.3.
The ability of the network to process large load has made it the destination for famous stablecoins like Tether (USDT) and USDC and projects like Civic (CVC).
Decentralized Finance platforms like Serum and Raydium have been kickstarted on Solana, and the list of projects on the network is growing.
The Opportunities around Simple Yield Attracted Defi Users
The SOL protocol uses the PoH (Proof-of-History) consensus combined with the basic PoS (Proof-of-Stake) consensus of the network. The number of crypto wallets that support SOL is also another fundamental reason why the project attracts so much attention. Currently, the wallets that support the token includes Blockfolio, Ledger and Exodus.