Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Why is the crypto world getting excited about Solana (SOL)?

Why is the crypto world getting excited about Solana (SOL)?

Solana has risen in the ranks to become the seventh-largest crypto, overtaking Dogecoin. We look at the reasons behind the hype.

Solana’s SOL token rose to become the seventh-most valuable cryptocurrency this week, overtaking Dogecoin on Fridayand rising by 21 per cent to reach $139.18 (€117).

In the last month, Solana has soared almost 220 per cent.

The token made its debut only 18 months ago but now has a market value of over $30 billion (€25 billion). So, what are the reasons for Solana’s rise in the cryptosphere?

The main reason Solana has attracted so much attention recently is because of the network’s entry into non-fungible tokens (NFTs), which can be anything digital such as art or music that are sold with tech.

Solana launched Degenerate Ape Academy, which sold a collection of pictures of cartoon apes. 10,000 of them sold in the first 10 minutes, which then drove the SOL token higher as people needed the cryptocurrency to buy the cartoon apes.


Solana has also been helped by the August rally of NFTS, which hit a record in sales of about $900 million (€761 million).

Solana has also focused on DeFi (decentralised finance) projects, which cuts out financial institutions and intermediaries and executes financial transactions over the blockchain in recent months.

What is Solana doing differently?


Solana has prioritised smart contracts, which are programmes stored on the blockchain that run when predetermined conditions are met and automate agreements so that everyone is certain of the outcome. They cut out any intermediary and speed up the process.

This has allowed Solana to take advantage of the NFT market and DeFi.

But other cryptos such as Cardano are also planning to enter the smart contract space, so there will likely be increased competition.


Solana also uses the proof-of-history (PoH) consensus, which means that messages are grouped together so that there is proof and a record of the time of each message. The concept allows for greater scalability and trust on the blockchain.

One of the network’s other main promises is that its users will not be surprised with increased taxes and fees.

Solana logo


Traders have also been speculating on a possible new feature Solana is set to launch in early September but little is known on what the feature could be.

Is Solana a rival for Bitcoin and Ethereum?


According to crypto investment company CoinShares, Solana has picked up more than $7 million (almost €6 million) in investment over the past week. Whereas Bitcoin saw a loss of $2.8 million (€2.3 million) in investment. But Solana is unlikely to knock Bitcoin from the top spot anytime soon.

Solana is seen more as a rival to Ethereum as the tech is cheaper and claims to offer a faster transaction speed, at 50,000 transactions per second.

Are there any threats to Solana?


As more blockchains begin to use smart contracts and move into NFTs, Solana will face more competition in the space it has carved for itself.

But there is another threat. Crypto regulations in China saw Solana’s price fall 60 per cent this summer amid the crypto market crash.

The United States is also investigating the cryptocurrency market, which could pose another threat to the values of all tokens.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×