NFT drop pushes Solana’s SOL token as the first cryptocurrency to a new all-time high
Solana on the rise. (Image: Skorzewiak / Shutterstock)
The SOL token of the Solana network has increased by around 80 percent in the last seven days. SOL owes the recent rapid increase to the NFT project “Degenerate Ape Academy”.
SOL has jumped to $ 68.82 in the past 24 hours, according to Coinmarketcap. This corresponds to a new all-time high and significantly exceeds the level of around $ 55 shortly before the fall of the entire crypto market in May. The last 24 hours alone are responsible for almost 40 percent of the price gain. With the jump, SOL reached the top 10 crypto tokens, albeit just under 10th place with a market capitalization of around 19.5 billion dollars.
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NFT drop pushes SOL course up drastically
The responsibility for the almost explosive rise is likely to be largely due to the start of the NFT art project “Degenerate Ape Academy”. The art project had 10,000 different cartoon monkeys available for purchase. In less than ten minutes all the monkeys were taken. The monkey sale was organized and carried out by the NFT marketplace Solanart, the equivalent of OpenSea on the Ethereum chain. The prospective buyers had to spend 13+ SOL, i.e. from around 1,000 dollars, to purchase the cartoon NFTs. It remains to be seen whether the rise will continue after the hyped project ends.
There are a few arguments in favor of this. So the blockchain of the Solana network is being used more and more and activity is one of the parameters that indicate the value of the system. The increase in activity had already caused the token to rise slowly. But the chain can also score in terms of content. With up to 50,000 transactions per second, it is significantly faster than Ethereum with its 30. The transactions are processed accordingly quickly. There are no traffic jams so far. In addition, Solana scores with extremely low fees, while the previously expensive Ethereum has even increased by around nine percent after the London hard fork.
Will Solana Take the NFT Leadership? It seems possible.
Especially in the NFT area, the Ethereum chain could threaten the faster, cheaper Solana chain. Ethereum had recently made one or two lapses with NFT drops – think of the unsuccessful purchases as part of Mila Kuni’s NFT project Stoner Cats. Because the Ethereum chain could not cope with the load of more than 10,000 sales in 35 minutes, bidders had lost a total of around $ 800,000 to ETH.
In addition, the relevant ETH gas trackers show in unison that NFT drops via the Opensea marketplace continuously lead to fee peaks. The marketplace is the undisputed burn king when it comes to burning the base fee according to the new fee model. Faster, more reliable and cheaper processing of NFT drops is a huge advantage for both artists and collectors. In any case, Solana founder Anatoly Yakovenko is convinced that his chain is facing exponential growth.
