Amid the growing use of NFT and DeFi, Solana continues its rapid rise, dethroning the leading meme coin: SOL has multiplied its value in recent weeks and has risen by 300% in the last 30 days. Solana is now the seventh largest cryptocurrency by market capitalization, displacing Dogecoin from its place.
SOL, the native cryptocurrency of the Solana blockchain, has moved up another place and now ranks seventh on the list of the most valuable cryptocurrencies by total market capitalization. This is shown by data from CoinGecko. Thus, Solana has overtaken the leading meme coin Dogecoin (DOGE).
Solana has experienced an incredible increase in value in recent weeks, the coin has increased by over 300% in the last 30 days. During this time span, Solana has repeatedly hit new highs, from about $ 35 per coin on August 1st to a new high of over $ 136 on Tuesday. Solana has gained 23% in the last 24 hours, continuing the rapid increase of recent times. On Monday, the cryptocurrency crossed the $ 100 mark for the first time.
Dogecoin Sees Mixed Performance
Dogecoin, on the other hand, has recently shown a rather mixed performance. According to CoinGecko, the DOGE price has increased by 46% in the last 30 days, but only by about 7,5% in the last week. True, DOGE rose faster than some competing coins as the broader cryptocurrency market began to recover in late July. However, DOGE is a historically volatile cryptocurrency. It tends to swing more strongly in both directions than coins like Bitcoin and Ethereum.
The price of Dogecoin has still risen massively since the beginning of the year. From $ 0.0055 on January 1st to a current price of over $ 0.29. That’s an increase of 5,200%, noting that Dogecoin is still nearly 60% off its peak price of $ 0.73, which was reached in May. Solana’s market capitalization (or the total number of coins multiplied by the current price) is now $ 39.2 billion – compared to $ 38.7 billion for Dogecoin.
Solana is seen as an emerging competitor to Ethereum, which is currently the leading smart contract platform. Smart contracts are bits of code that execute specific instructions, and they drive decentralized applications (Dapps), decentralized financial protocols (DeFi), and NFT crypto collectibles alike.
Ethereum struggles with chronic constipation
Although Ethereum has a large lead among smart contract blockchains, the network is often overloaded. This is driving up gas fees for transactions-especially in the midst of the current NFT boom. In addition, Ethereum’s current proof-of-work mining model requires a lot of energy, although it will move to a more efficient proof-of-stake system with the upcoming Ethereum 2.0 network upgrade.
Designed from the start as a more energy-efficient proof-of-stake blockchain, Solana offers fast transaction times and low fees. The increase in the price of the SOL token in recent weeks is partly due to the growing DeFi and NFT activity on the platform. This suggests a broader acceptance by developers and users.
Still, the blockchain newcomer and supposed “Ethereum killer” lags far behind his established rival in terms of network activity. According to data from DeFi Llama, DeFi logs on Solana currently have a value of $ 3.6 billion stored in their smart contracts. Ethereum-based DeFi protocols, on the other hand, have stored $ 126 billion worth of assets.
Text credit: Decrypt
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