Solana (SOL) price sets new record after rise of 2,400% this year, but what’s behind this?

In today’s mainly red market, the price of solana (SOL) is one of the most noticeable rises. The SOL price is up more than 20% in the past 24 hours and this morning it set a new all-time high (ATH) of $ 37.75.

The Solana rate has risen by no less than 2,400% since the turn of the year when the price was still at $ 1.50, but what is actually behind this huge increase? Solana’s growth probably has to do with how many transactions per second the network can process.

Bitcoin (BTC), for example, can only handle 7 transactions per second (TPS) (without the help of layer-2 solutions) and Ethereum (ETH) can currently only handle about 15 to 18 TPS. Due to the growing market, these networks are getting busier and that leads to enormous transaction costs.

Although Bitcoin and Ethereum developers are working on solutions, Solana can currently handle more than 50,000 TPS and that is quite a difference. As a result, the relatively new blockchain network is attracting more and more attention and some major announcements have been made recently.

For example, decentralized finance (DeFi) was recently brought to Solana with the launch of Serum, a decentralized cryptocurency exchange, or DEX, as well as Raydium, an automated market maker (AMM) and liquidity provider.

Also, the stablecoins tether (USDT) and USD Coin (USDC) have recently been transferred to Solana. More than $ 1 billion has already been tokenized on the network. In addition, Phantom has developed a new wallet for Serum and recently announced support for non-fungible tokens (NFTs).

There are many more examples that underline Solana’s growth. Last month, Oyxgen (OXY), a new DeFi project on Solana, held an ask me anything (AMA) session on LOUDLABS.

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