As we reported , Solana managed to surpass Ripple (XRP) earlier this week after expanding its bullish streak. Unaffected by the recent market correction, the cryptocurrency hit an all-time high (ATH) of $213 on September 9. At the time of writing, Solana (SOL) fell by about 7% in the last 24 hours to $177, according to CoinMarketCap data. However, it has gained about 28% on a weekly basis.
Why is the interest of institutional customers in the cryptocurrency Solana?
According to FTX CEO and cryptocurrency billionaire Sam Bankman Fried, Solana (SOL), one of the top “Ethereum killers”, is experiencing a wave of corporate interest. FTX CEO makes the following determination:
Institutionally, there is much more interest.
Sam Bankman Freed, on the other hand, claims that while Solana has some leverage, the Proof of Stake (PoS) network has one of the most compelling roadmaps in the industry. Solana first entered the top 10 of CoinMarketCap in mid-August. The successful launch of Degenerate Ape Academy, a collection of Non Fungible Tokens (NFT), was mainly driven by the price increase.
Cryptocurrency analyst Alex Dovbnya says that due to its scaling solutions, best practices on the Ethereum network are too cumbersome and expensive for the average Joe, and Solana (SOL) has an incredible 50,000 transactions per second and competitor Blockchain’s capabilities. He states that it offers very low fees, which takes them out of the water. According to the analyst, although critics argue that Solana is more centralized than Ethereum, the narrative that it is likely to challenge the current smart contract leader is undoubtedly boosting the price of the coin.
“Fade (SOL) not immune to fixes”
Earlier this year Solana (SOL) was known only among crypto enthusiasts. Cryptocoin. com, this is no longer the case. From being one of the sponsors of the Lollapalooza music festival to receiving random Twitter quotes from the likes of Mike Tyson and Jason Derulo, it would not be wrong to say that SOL is no longer an unknown cryptocurrency.
, however, analyst Alex Dovbnya points out some of the crypto’s weaknesses:
The high-flying cryptocurrency is not immune to corrections. SOL is currently down 7% in the last 24 hours on major spot exchanges. However, it is too early to say whether the excitement of the market has waned.