Solana often hailed as the “Ethereum Killer”, has experienced a remarkable surge of over 350% in the past year, marking an 18-month high in its price. The driving forces behind this impressive growth are multifaceted, with the recent accolades from Cathie Wood, the CEO of Ark Invest, serving as the latest catalyst. Wood, in a November 1 CNBC interview, commended Solana for its efficiency and cost-effectiveness, positioning it as a crucial player in blockchain infrastructure. Notably, she underscored Solana’s speed and efficiency, surpassing even Ethereum in these critical aspects.
Drawing parallels with the historical comparison between Bitcoin and Ethereum, Wood highlighted that, in its time, Ethereum was faster and cheaper than Bitcoin. However, she pointed out that SOL has managed to outpace Ethereum in terms of both speed and cost-effectiveness. In Wood’s perspective, Ethereum and Solana are pivotal components of the blockchain ecosystem, functioning as infrastructure layers capable of supporting a broader array of real-world applications compared to Bitcoin.
In tandem with a generally positive trend in the cryptocurrency market, SOL’s gains have outstripped those of other major cryptocurrencies, boasting an impressive surge of over 197% in the past month alone. Beyond its price momentum, the leading altcoin’s influence in the decentralized finance [DeFi] sector has garnered significant attention.
Solana’s Smart Contracts Hit YTD High
According to the CEO of Asymmetric, Joe McCann, the number of SOL DeFi users actively engaging with 10 or more smart contracts [Solana programs] daily has reached a year-to-date high. SOL’s user engagement surpasses Ethereum by 11.5 times, Optimism by 6.88 times, and both Arbitrum and Avalanche by 16.4 times. Most notably, it outshines Polygon by a staggering 23 times.
The SOL decentralized exchange [DEX] volume to total value locked [TVL] ratio over the last seven days is an impressive 13.6 times, highlighting the platform’s notable capital efficiency. As per CoinmarketCap data, Solana’s current value stands at just over $65.6, reflecting a substantial increase of nearly 190% in the past month. This surge underscores the growing confidence and interest in the Solana network, positioning it as a formidable player in the ever-evolving cryptocurrency landscape.