Solana, one of the cryptocurrencies competing with the Ethereum network, is increasingly closer to surpassing its rival. SOL recently raised its price to over 13 percent, helping it rank number four on CoinMarketCap, leaving Cardano behind.
With this increase in its value, SOL reached a new all-time high of $247 but eventually dropped to $241.69. According to reports, this rise in SOL is caused by increased transaction costs with Ether, which drives the enthusiasts to use it for smart contracts.
Solana increases in value while competing against Cardano and Ethereum
Among the cryptocurrencies that dominate the Blockchain network to create new technologies are Solana and Cardano. Both cryptos are compared for their versatility in smart contracts and their validation in transactions. But these cryptos also enter the list of Altcoins that enthusiasts often use to avoid high transaction costs on Ethereum.
The capitalization in Solana exceeds $70 million, with a trading volume that reaches $5,169,703,943. Although SOL is often taken as a copy of Ether, it is a more open protocol used by PoH and PoS tests.
The protocol in SOL accepts the creation of the DeFi project, video games, market, and non-fungible tokens for virtual auctions. Simultaneously, Cardano bases its operations on proof of change and transaction validation in which PoW costs are reduced. Both cryptos seem to be the perfect option in the face of the Ethereum network.
Why SOL price increase?
The reasons Solana increases its market price may be linked to the increase in sales volume in non-fungible tokens. Since the beginning of November, SOL has had a good movement in adoptions regarding creating non-expendable parts. According to announcements yesterday, the token broke a record in NFT operations that reached almost 500 million dollars.
Data indicates that SOL’s NFT alternate sales have produced more than $400 million with at least 340,000 reported transactions. On average, each NFT sale is estimated to be $1,500 using the SOL network.
With these data in mind, SOL reports that October was the month with the most alternate sales at NFT. This compares with the figure reported in September, where SOL reached about $189 million in sales. For many enthusiasts, cryptocurrency is becoming the possible killer of the Ether network. Still, the SOL price has not even reached 50 percent of what Ethereum shows in the crypto market.
Shortly, Solana may overtake Ethereum, as it has recently done with Cardano, to become the leading Blockchain-based technology network.