Why Solona?
Solana is a smart contracts platform with a unique architecture that allows it to process thousands of transactions per second while keeping costs extremely low. Solana achieves this by utilizing a unique Proof-of-History algorithm and a Proof-of-Stake consensus mechanism. SOL is among the cheapest cryptos to transfer on the market, as users pay less than $0.001 per transaction on average.
Solana was founded in 2018 by Anatoly Yakovenko. The platform’s mainnet launched in March 2020, and saw a huge boost in adoption in 2021. While SOL has lost a lot of its value in the 2022 bear market, Solana still has one of the most impressive ecosystems in the cryptocurrency sector.
Why Solana?
Solana has been a standout performer in the last week, gaining 22.4% against the US dollars while Bitcoin and Ethereum showed significantly lower gains of 6.7 and 4 percent, respectively. With the move upwards, SOL ($79 billion market cap) is once again in striking distance of overtaking BNB ($84.6 billion market cap) in the crypto rankings.
Solana’s DeFi ecosystem continues to be extremely active, with meme coins being the primary driver of demand. According to DeFi Llama, DeFi protocols on Solana have seens $890 million worth of transaction volume in the last 24 hours, compared to Ethereum’s $1.3 billion in the same period.
However, the TVL (Total Value Locked) in the Solana DeFi ecosystem is more than 10 times smaller than the TVL of the Ethereum DeFi ecosystem, which makes Solana’s DeFi volumes especially impressive.
Another sign of the current popularity of Solana is that Phantom, a cryptocurrency wallet best known for its Solana blockchain support, is currently the 4th-ranked utility app on the App Store, behind only Google, Google Chrome and Countdown.