From the past few weeks, it has been seen that the crypto market is performing quite well as most of the cryptocurrencies are experiencing gains. Solana (SOL), which is a censorship-resistant blockchain, has recently seen a huge increase in its trading volume.
According to several experts, Solana could be seen as a strong competitor of Ethereum. This has been proved by Sam Bankman-Fried, CEO of FTX Exchange, as he has chosen SOL blockchain to host his project, Serum. He has mentioned that Ethereum is not capable of coping up with the rapid growth in the DeFi sector. The reason behind choosing SOL blockchain is that it is able to face the transaction fee and scalability challenges.
Bankman-Fried has revealed that before trusting Solana, he has tested more than 30 blockchain projects which also includes Ethereum. He has also mentioned that SOL blockchain is capable of processing around 50,000 transactions, every second. Bankman-Fried believes that in order to meet current crypto needs, the network needs to be “million times faster than Ethereum.”
Back in April 2020, SOL token was trading around $0.50 and until July 2020, this range was around $0.50 to $0.91 only. The token has experienced a huge surge after the announcement from Bankman-Fried, during late July. Within the next two months from the announcement, its daily volume has surged to $41 million and the price increased to $4.89.
Recently, OCC has approved the banks to use new technologies that also include stablecoins and can add different options. After this approval from OCC, Solana has mentioned:
“USDC is already integrated on Solana, which is the only chain today that can settle 50k+ txns per second, with fees as low as $0.00001 per txn.”
The firm believes that this approval is going to benefit them to a very great extent.