Solana Hits New All-Time High Above $60

Solana Hits New All-Time High Above $60

The native token of the Solana blockchain, SOL, surged to a fresh record high above $60 on Monday amid the network’s accelerating adoption.

The cryptocurrency is among the best performing over the past 24 hours, up by 36% as of 5:16 a.m. ET. The rally propelled SOL to $64.80 earlier this morning, crossing the $60 threshold for the first time ever. In January, the token was worth just $2.

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Founded in 2017 in the midst of the ICO boom, Solana has emerged as a challenger to Ethereum as the blockchain of choice for building decentralized applications. Like the so-called “ETH killers”, such as Polkadot and Cardano, the project claims to offer a faster and more efficient alternative. For instance, Solana says it is capable of processing more than 50,000 transactions a second, rivaling Visa’s claimed 65,000 transaction messages a second (TPS). However, it currently handles 6,110 TPS, according to solanabeach.io, an information platform maintained by one of the network’s validators, Staking Facilities.

One of Solana’s key distinguishing features is its proof of history consensus mechanism for adding new transactions to the blockchain, which shows that a certain event occurred at a specific time without requiring validators to talk to one another in order to agree on timing. According to the project’s founder and CEO, Anatoly Yakovlenko, this allows for greater speed and security.

In June, Solana Labs, a technology company developing the network, completed a $314.15 million private token sale led by Andreessen Horowitz and Polychain Capital, one of the largest fundraising rounds in the industry. Sam Bankman-Fried’s Alameda Research has also participated in the raise.

Bankman-Fried, who is also a founder of $18 billion crypto derivatives exchange FTX, has been a long-time champion of Solana and built a decentralized exchange called Serum on top of Solana to take advantage of its promised speed and security. According to CoinGecko, Serum’s 24-hour trading volume is $40,994,834, which is well below Ethereum-built industry leader Uniswap, which processed $1.3 billion in volume over the same period. Still, Solana's decentralized finance ecosystem has been growing at an accelerating speed, with the value of all the tokens staked in Solana-based decentralized finance applications approaching $2 billion.

Other top assets are also showing strong performance. Bitcoin is trading at $47,338 as of press time, with a 3% gain on the day. Ether is returning 4.17%. Among the biggest movers in the top 10 are Dogecoin and Polkadot, up by 13.7% and 11.5% respectively.

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