After hitting an all-time high of $218 on October 25, Solana’s rally seems to be back on track, surpassing $200 after a 30% rally in the past week.
Solana towards $300
The rising price also follows the growth of the Total Value Locked (TVL) of all DeFi projects on Solana’s blockchain, which has well exceeded $14 billion.
According to experts, Solana’s next target would be at $243, where it will encounter strong resistance, which it could reach in the coming days. Forecasts for next year claim that Solana could break the $300 barrier.
What is Solana
Solana is a decentralized finance blockchain, born in 2017, very similar to Ethereum. Its goal is to become a new Ethereum, faster and cheaper. It is named after a famous beach in San Diego, California.
Supporting around 50,000 transactions per second, Solana is one of the most scalable blockchains in the world. Solana uses the Proof of History system. This consensus system is based on an algorithm that registers each node on Solana’s network, which then allows all transactions that occur on the entire blockchain to be synchronized. Logs are thus created based on simple event history. This makes transactions much faster.
Solana and the Raydium project
All this allows Solana’s blockchain to have greater speed and much lower economic costs than those required by Ethereum.
What also seems to help Solana’s upward trend a lot is the increasing development of Nft projects, which have recently arrived on its blockchain as well. Since Solana is only at the beginning of its journey, it is clear that there is plenty of room for growth in this sector.
A few days ago, Solana overtook Cardano in terms of capitalization. Solana’s capitalization is $69.74 billion compared to Cardano’s $69.34 billion.
The most important project on this blockchain is currently Raydium, which is an Automated Market Maker and was recently among the top 100 cryptocurrencies listed by capitalization.
The road to ousting Ethereum from its throne seems very difficult, but Solana certainly seems to have a bright future ahead of it. This is demonstrated by the token’s prices, which seem to be unaffected by the fluctuations of the crypto market.