Ethereum-killer Solana hit a new all-time high at $219, flipping XRP in market cap

Solana is now the sixth-largest cryptocurrency by market capitalization. The layer one blockchain protocol’s high throughput and low-cost transactions attract developers and users to the SOL ecosystem. 

SOL on-chain activity explodes as the altcoin hits a new all-time high

Earlier today, SOL hit a new all-time high. The total value locked (the equivalent of market capitalization) of all DeFi projects on the Solana blockchain has hit $13.5 billion. The high throughput (0.4-second settlement) and cheap transactions are driving users to the SOL network. 

Further, SOL has posted over 13,500% gains since the beginning of 2021. Proponents debate whether the altcoin is an Ethereum-killer or a complement to the altcoin, while SOL eyes a position in the top five cryptocurrencies. 

Solana is popular among venture capitalists as one of the most significant crypto investments. The altcoin had emerged as a top choice among institutional investors three weeks before it hit a new all-time high. 

Pseudonymous cryptocurrency analyst @Pentosh1 predicted that SOL is preparing for explosive price discovery based on both fundamentals and technical analysis setups. The launch of NFTs and new projects in the SOL ecosystem has fueled the spike in on-chain activity. 

Crypto analyst @SmartContracter predicted SOL price rally to the new all-time high. The analyst noted a minor high on the price chart overnight and expected a new all-time high today. 

Tim Enneking, managing director of Digital Capital Management, identified the key reasons for Solana’s price rally. Enneking said, 

It’s a legitimate participant in the NFT market (as opposed to a ‘hype participant’ as every token tries to claim some sort of affiliation with NFT to goose its price).

Solana has provided what Ethereum promised users and developers for years. The Ethereum-killer works on a proof-of-stake mechanism, powering low cost and fast transactions with greater scalability. 

Cryptocurrency analyst @CryptoSenorita observes that Solana’s current price trend is similar to Ethereum’s during its  2017 bull run. The analyst has set a target of $700 for the altcoin’s price in the current rally.