Ethereum competitor Solana ousts Dogecoin to become 7th largest cryptocurrency in the world

Solana’s competitor Ethereum is currently the second-largest crypto after bitcoin with a market cap of $462 billion. (Image Solana.com)

Etherum competitor Solana — a decentralized blockchain platform – is now the seventh-largest cryptocurrency in the world ahead of Dogecoin. Its SOL token has jumped 3.3X in price in three weeks from $43 on August 15 to $145, at the time of filing of this report, as per CoinGecko. On the other hand, its market cap has grown from $14.6 billion to $42 billion in comparison to the $40.5 billion market cap of Dogecoin. Solana’s market cap is currently $21 billion short of the $63 billion market cap of XRP – the sixth largest cryptocurrency. However, according to expert, Solana’s speed to process transactions and lower cost is yet to be proven in the real world. According to its website, the average cost per transaction is $0.00025. “Solana is the fastest blockchain in the world and the fastest-growing ecosystem in crypto,” it said.

“We are in a bull market where the government is printing notes like paper. This is creating significant value to fixed supply assets like Bitcoin and Gold. But having this flood of new users joining the community is hunting for cryptos to get rich. Solana is an alternative to Ethereum with faster speed and lower costs. But it still has to prove in the real world. A sudden growth like this is a dangerous situation, but at the same time, it’s an opportunity for traders,” Kumar Gaurav, Founder & CEO, Cashaa told Financial Express Online.

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Solana Labs, the developer of Solana blockchain had announced a $314 million funding round in June led by venture capitalist Andreessen Horowitz and Polychain Capital. Alameda Research, Blockchange Ventures, CMS Holdings, others had also participated.

According to messari.io, Solana’s origin date back to 2017 when founder Anatoly Yakovenko published a whitepaper draft about a new timekeeping technique for distributed systems called Proof of History (PoH). He believed that the technique can automate the transaction ordering process for blockchains as one of the limitations to scalability in Bitcoin and Ethereum is the time need to reach a consensus on the order of transactions. Its competitor Ethereum is currently the second-largest crypto after bitcoin with a market cap of $462 billion. It is currently trading at $3,940, according to CoinGecko.

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