Ethereum-rival Solana is among the top-performing altcoins over the last month, with the cryptocurrency reaching a new all-time high of over $200.
Solana (SOL) has risen as much as 30.9% to hit a record high above $200 earlier today, driven by ongoing demand in DeFi and NFT services.
SOL has one of the best-performing cryptocurrencies during the last month, having risen by over 350%, compared with an 84% gain in Cardano's ADA, a 64% increase in Polkadot's DOT, and an increase of just 24% in Ether and 16% in Bitcoin.
Behind the rising price of SOL token lies the success of the Solana blockchain. Similar to rival Ethereum, Solana can host decentralized finance applications such as smart contracts and non-fungible tokens.
The blockchain network employs a Proof-of-Stake (PoS) consensus model along with a Proof-of-History (PoH). With its higher scalability, Solana is now emerging as a competitor to Ethereum hosting several DeFi apps.
In fact, the token’s price rally comes amid a solid surge of its on-chain DeFi activity. For instance, according to the data provided by DeFi Lama, the total value locked (TVL) on the Solana blockchain has reached an all-time high of $7.99 billion. Since June 30, the TVL on Solana has increased by over ten times.
At the same time, the spike in NFT activity on Solanart, a marketplace built on the SOL blockchain was also influential in driving the altcoin’s price higher.
Solana also supports up to 50000 transactions transfers per second, which is faster when compared to Bitcoin and Ethereum.
Google Trends is currently pointing to a value of 100 for the worldwide search query “how to buy Solana” over the past 12 months. In fact, the worldwide search query for the term “Solana” is returning a value of 100 at the time of writing.
Just last week, SOL overtook Dogecoin to become the seventh-biggest coin by market capitalization, with a market value of around $54 billion. The cryptocurrency is currently ranked 6th, leaving behind XRP.