- Solana’s DeFi projects surpassed $3 billion.
- SOL’s NFT market value reached $1 billion.
It was a thrilling and nerve-wracking quarter for the crypto-community. While Bitcoin and Ethereum had good quarters, it was the younger protocols that dominated. Projects like Solana, Avalanche, and Terra have seen substantial growth in smart contract platforms, outperforming the broader market. All of the above gained above 300 percent on the charts.
Despite a surge in new user adoption owing to the fast growth of NFTs, the Ethereum network suffered from record high transaction fees throughout the year. This includes $1.96 billion in fees only in Q3.
As consumers looked for low-cost Ethereum alternatives, this helped competitors like Solana and Avalanche. With ETH’s transaction cost above $55, SOL’s price soared almost $200 in early September.
Solana Can Compete with Rivals
The corresponding peak in SOL and ETH’s mean transaction cost raised suspicion that Ethereum was driving SOL’s rise. Was this all SOL’s growth?
As the alt currency reached $200 per token in August-September, the market dubbed it “Solana Summer.” This from only $2 at the start of the year. Pessimism took hold shortly after the asset’s ATH of $215. This fueled suspicion that ETH had triggered SOL’s rise. But Solana’s rally was more organic than it appeared. In September, Solana’s DeFi projects surpassed $3 billion. The sheer number of SOL projects shows it can compete with ETH and other ETH-killers.
Solana benefited from the emergence of NFTs as an interoperable blockchain platform. On October 2, SOL’s NFT market value reached $1 billion. The same highlighted the fact that new funds have entered the coin markets.
Solana’s market has been slow lately, but it has held onto the $164 barrier. With Ubeswap collaborating with Allbridge to provide both Solana’s native asset SOL and Saber’s governance token SBR to Celo, the alt got a social boost. Regardless of the costs. Even if a price pump reverses the damage, it is doubtful that SOL will see a prolonged recovery in the foreseeable future.
Nonetheless, Solana’s rise has been undeniable. Despite price consolidation, the seventh-ranked coin has maintained its chart position. Daily and weekly advances of 2.89 and 10.10 percent may make a bigger return when cryptocurrencies rise. According to CoinMarketCap, the price of Solana today is $157.83 with a 24-Hour trading volume of $1,776,247,536.