Solana (SOL) is the only altcoin among the top 10 altcoins by market capitalization to see an increase in price over the past 24 hours. Top 10 competitors such as Ethereum and XRP have reported significant losses, while Bitcoin has lost 7% of its value in the last 24 hours.
SOL continued its bullish trend, rising 2.94% on the day to $174.38, with its value surging 55% over the past month.
Why SOL has been crying lately
Solana’s price rose a whopping 21% last week and 724.6% higher than a year ago. The performance of SOL is closely linked to developments within the ecosystem. A recent break above the $170 level could lead to a retest of the all-time high of around $260.
Altcoins first showed signs of revival in late 2023 amid high interest and retention from developers. The recent announcement of the Israeli Shekel-based stablecoin BILS and improved liquidity through USDC stablecoin support have attracted users’ attention to blockchain.
These innovations prepare blockchain for the expected surge in tokenization of real-world assets. Solana’s fast transaction times will help resolve the exchange of certificates representing ownership of real-world assets.
Read more: What is Solana (SOL)?
As a result, Solana’s weekly users grew from 432,000 to nearly 800,000 in just over a week from February 26 to March 7, 2024. This is an 85% increase, suggesting a positive outlook among investors and traders alike. This is despite a history of network outages and service interruptions almost every year since launch. The most recent Solana outage halted block progress for approximately five hours on February 6th.
SOL growth is impressive, but challenges await
However, a recent glitch that prevented users of cryptocurrency exchange Coinbase from seeing their exact balances suggests this phenomenon is part of increasing blockchain activity. Binance’s recent discontinuation of Solana withdrawal support was made in order to improve infrastructure as Solana’s trading volume increases. However, Bitcoin maximalist Max Keizer criticized the centralization of Solana’s infrastructure with its relatively small pool of validators.
“SOL is centralized garbage,” Keizer tweeted.
The network may face competition from Ethereum following the successful Dencun upgrade that reduced transaction fees. Gas costs on major Ethereum layer 2 networks like Zora and Base are approaching Solana levels just two days after the upgrade. According to Solscan, Solana’s average transaction fee is $0.0017, while Zora and Base’s average transaction fees are $0.002 and $0.055.
Read More: Solana (SOL) Price Prediction for 2024/2025/2030
BeInCrypto reached out to Solana Labs for comment on the recent launch but did not hear back by press time. Ethereum co-founder Vitalik Buterin also did not respond to requests sent through X (formerly Twitter).
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