Solana has overtaken XRP in market capitalization
SOL is currently trading at $209.58, which is 11% higher than yesterday and about 30% higher than a week ago.
Solana overtook Ripple to become the 6th largest cryptocurrency in the world.
Solana is a publicly available, base-level blockchain protocol optimized for scalability. Its goal is to provide a platform that allows developers to create decentralized applications (dApps) without considering performance bottlenecks.
SOL has a new time-stamping system called Proof-of-History (PoH) that allows users to order transactions automatically. It also uses the Proof of Stake (PoS) consensus algorithm to protect the network. Additional project goals include:
- Reduced settlement time (less than a second);
- Low transaction costs;
- Support for all LLVM-compatible smart contract languages.
On Thursday, the total value locked (TVL) of all decentralized finance (DeFi) protocols in the Solana blockchain exceeded $12.7 billion. TVL is a useful indicator, especially for blockchains that support smart contracts, such as Solana and Ethereum. Smart contracts are self-executing financial contracts that do not need an intermediary to enforce conditions.
Blockchain developers use smart contracts to create DeFi protocols.
DeFi refers to the myriad of tools that allow users to borrow money, earn interest, exchange tokens, and make their money work in countless other ways. At the time of writing, more than 430 apps have been created on Solana.
Also, on Friday, Solana announced the beta launch of “Squads,” a tool that helps people create decentralized autonomous organizations (DAO) online. DAO simulates the structure of stakeholder-led organizations through self-dealing smart contracts and democratic voting by their members. They are often used to mobilize, coordinate capital, and structure governance protocols.
As we see in the table below, transactions in Solana are fast and cheap, making it one of the most popular blockchains at the moment. Over the past year, SOL has grown from $1 to $210. Our users can invest in Solana by purchasing a Blockchain infrastructure index.