Solana on CoinBase is in the trend again
Solana (SOL) has recorded the most significant gains in the last 24 hours among the ten largest cryptocurrencies by market capitalization. During Thursday morning, prices rose by more than 8% to $ 152, when it was around the level of 130 USD / SOL at the beginning of the week. The move came after Bank of America said in a research report that low fees and high transaction rates make Solana a “digital asset to the Visy ecosystem.” Banking analysts even mention that it could usurp Etherea’s current position as a leader among blockchain using smart contracts. Specifically, they note that Solana prefers scalability, while her blockchain is less decentralized and secure, which illustrates several network performance issues since its inception. Analyst Alkesh Shah adds, “that the network has been prepared for consumer use cases such as micropayments and games.”
Price charts show some resistance at current levels, which could break Solana to $ 170 if it breaks. Relative strength index (RSI) values at level 53 suggest that Thursday’s rise could have another upward trend in the coming days. The RSI is a price chart indicator that measures the magnitude of price changes, with values above 70 indicating that the asset is overbought and could be prepared for a correction.
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High speeds, cheap fees, and NFT
Unlike other blockchains such as Bitcoin, which rely on complex mining platforms operated by miners, Solana works on a proof-of-history mechanism that drives her cheap and fast blockchain. Network stakeholders verify transactions by verifying them on multiple network cores and considering the time that has elapsed between the two transactions. Such a design helps create a faster network that, according to Solana developers, can reach speeds of up to 65,000 transactions per second (fps). The technical documents suggest that the network could theoretically reach speeds of up to 28.4 million tps under optimal conditions.
Cheaper fees, which are only $ 0,00025 per transaction, have led to massive interest from retailers in Solana-based products, especially those that include a non-fungible token (NFT). The value of daily NFT activity in the network averages around $ 1.8 million (39.6 million crowns), as evidenced by data from the analytical tool DeFi Llama. The daily value reached its highest value on January 6, 2021, when it amounted to $ 9.2 million (202.4 million crowns).
Some investors argue that the rapid adoption of the NFT in Solana compared to other blockchains shows how a low-cost and fast network is helping the retail market. “It’s interesting how the NFT ecosystem in Solana on CoinBase is doing now, even though it’s built with features that are optimized for financial applications (fast block time, low cost, fast finiteness),” Arthur Cheong, the company’s founder, told Twitter on Wednesday. Defiance Capital. He also said, “In fact, I think most of the increase in users lately comes from the NFT instead of DeFi.”
Thanks to blockchain’s rapidly growing retail popularity, Solana has attracted more developers who are now involved in creating this network. They make their own NFT platforms and drops, such as Candy Machine. Thanks to it, many creative developers can try their hand at creating. It is an open and community event, similar to the Metaplex office hours. Rayn Wilkinson, Head of Product at Blockasset.co, adds that “Projects such as GenesysGo and Shadowy Super Coder NFTs show how NFTs in Solan provide key infrastructure benefits to the network. Behind the entire ecosystem.”