Solana Prices Have Climbed More Than 15,000% This Year

Solana Prices Have Climbed More Than 15,000% This Year

The price of Solana’s sol token has skyrocketed this year, generating widespread visibility as its gains surpass those of many other digital currencies.

The cryptocurrency, which serves as the native token of the Solana platform, reached as much as $248.01 around 9 p.m. ET, Messari data shows.

At this point, the digital asset was up roughly 15,300% since the start of this year, additional Messari figures reveal.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Multiple Bullish Variables

When explaining the impressive gains experienced by the sol token, analysts have pointed to a range of factors.

Earlier this year, Scott Melker, a well-known crypto investor and analyst who is the host of The Wolf Of All Streets Podcast, stated that “Solana is a legitimate competitor to Ethereum, with lightning fast transactions at a fraction of the price.”

“The rapid increase in value is largely a result of crypto gaming and successful NFT launches,” he added.

“Developers and projects have been building on Solana for years, which is manifesting in an explosion of price and adoption.”

Further, the platform has a wide range of use cases, including ones “that were not possible before,” because it can process transactions so quickly, stated Marius Rupsys, a digital currency investor.

High Throughput

The platform has generated substantial visibility for its ability to process a large number of transactions.

In September, Solana was processing 400,000 transactions per second, according to a tweet posted by the Solana Status Twitter account.

Unfortunately, the high demands placed on this network caused it to crash, which resulted in it being offline for 17 hours.

Fortunately, the validator community was able to restart the network the same day it went down.

Following Ether Higher

When explaining sol’s more recent gains, several analysts have stated that the token has been benefiting from an increase in the price of ether, along with the corresponding rise in gas prices.

“Solana tends to experience rallies whenever Ethereum does because with rising ETH prices come rising transaction fees, known as gas,” said Jason Lau, COO of cryptocurrency exchange Okcoin.

“The average transaction fee on Ethereum is up more than 2000% since June,” he noted.

“As a result, retail investors are turning to alternatives like SOL, which are faster and cheaper to transact, for smart contract payments while an increasing amount of NFTs are being minted on Solana's network.”

Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, stating that he “agreed” with this point of view.

The analyst also pointed to the widespread gains that digital currencies have been enjoying recently.

“I’ll add that often crypto currencies that are in the same category tend to move together, just like stocks that are correlated due to being in the same industry,” he stated. “A rising tide lifts all ships.”

Bullish Outlook

Sifling mentioned the possibility that Solana’s sol token could “flip” or replace ether as the world’s second-largest digital currency by market value.

“There is a lot of talk about it flipping Ethereum as its market cap and number of wallets continue to climb,” he stated.

“I believe this user growth will continue as mobile wallets are released from companies like Phantom,” not Sifling.

“This continued adoption from the public along with a strong technical breakout is the reason I believe Solana is making new all time highs.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.

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