SOL price soared 13% over the weekend after a new NFT marketplace launched and rumors of a $ 450 million fundraiser
After hitting an all-time high of over $ 60 last month, SOL’s price fell with the rest of the crypto market and fell below $ 20 a few days later after the May crash. However, while much of the crypto market stagnated over the weekend, SOL stood out with a 13% increase.
Solana is a blockchain protocol designed for building decentralized apps (Dapps) that are scalable, with an open infrastructure geared towards global adoption. The impressive gains SOL made over the weekend were likely driven by the amount of development currently taking place in the ecosystem.
Sam Bankman-Fried has invested heavily in the Solana ecosystem, and his quantitative crypto trading firm Alameda Research helped fund the Solana hackathon Step Finance project earlier this year.
Bankman-Fried’s FTX crypto derivatives exchange also selected Solana to launch their non-custody decentralized exchange (DEX), Serum. The DEX has seen growth in new users, exceeding $ 4 billion in trading volume last month.
There are now more than 150 projects in the Solana ecosystem that started just last week with the start of the NFT marketplace Metaplex. This has excited many as it allows artists to easily open their own self-hosted NFT storefronts, and by leveraging the Solana blockchain, it enables NFTs to be minted at an average cost of under $ 1.
And the development is far from over. According to Decrypt, Solana is raising up to $ 450 million to meet its goal of becoming the go-to place for dapps, in a move that could potentially see project rival Ethereum.
Ethereum gas fees are currently relatively low with average transaction costs of $ 3.68. However, these fees are likely to rise again before Ethereum 2.0 is rolled out, fueling demand for cheaper alternatives.
Solana offers an average transaction fee of $ 0.00025, with a block time of less than a second and a capacity of 50,000 transactions per second.
After rising over the weekend, SOL continued to rise this morning, trading at $ 43.70 at the time of writing. The impressive speed and scalability of the blockchain, with its low cost, likely means that we will continue to see growth in the ecosystem as more projects choose to build on Solana, which could mean another upward trend in the price of SOL in the future.