Solana's sol token surges more than 20% to new highs, surpassing Dogecoin in market value, driven by the surge in new NFT projects.
On Friday, Solana's sol hit an all-time high, extending a two-week run that saw it double in value, thanks in part to the growing popularity of crypto applications like as non-fungible tokens.
Sol climbed as high as 24% to a high of $146.37 early in the day, and was last up roughly 8% at $138.83. According to Coinmarketcap, its market capitalization is currently over $42 billion, knocking dogecoin out of eighth position with a market capitalization of $38 billion.
In recent weeks, so-called alt-coins have risen rapidly. This is owed to a succession of network updates as well as the expanding ability of multiple blockchains, including solana, to host applications like non-fungible tokens (NFTs) and decentralised finance (DeFi) projects.
"The rising potential that Solana's NFT capabilities are bringing in are best attributable to the passion for Solana," said Yuri Mazur, head of data analytics at CEX.IO broker.
"In order to participate in the creative NFT projects that are being put out on the blockchain, users should hold a particular amount of sol tokens in order to mint their favourite NFTs. This new use case for sol is driving up demand for the digital currency and, as a result, its price" he stated.
The DeFi features of the Solana blockchain, as well as the smart contracts that make it a competitor to ethereum, are at the heart of Sol's popularity. On its network, it now hosts roughly 400 projects.
"Solana, like other digital currencies, has its own specific characteristics. The coin's scalability is bolstered by the underlying blockchain network's scalability, making it ideal for low-cost transactions and providing consumers with much-needed ease "Mazur remarked.
Anatoly Yakovenko, the creator and CEO of Solana, issued the whitepaper for Sol in 2017. It debuted in April 2020 on the Binance cryptocurrency exchange, with a price of $0.21.
"If the coin continues to expand at this rate, nothing will be able to stop it from crossing the $200 price threshold in the next two weeks. With the favourable atmosphere surrounding digital money in the NFT metaverse, this new peak could be reached sooner rather than later" Mazur remarked.
"There is no doubt that Solana can compete with the top ten and even reach the top five," said Dmitry Mishunin, the founder and CEO of HashEX, a smart contract auditing firm.
Bitcoin, ether, cardano's ada, binance coin, and the tether stablecoin are the top five cryptocurrencies by market capitalization, according to data from Coinmarketcap.
