Solana peaks over 15,000% in 2021, mostly increasing when Ethereum does, experts say
Forbes has reported that, according to fresh data provided by Messari analytics agency, Solana has risen by approximately a whopping 15,300% since the year began.
Solana’s native token, SOL, remains one of the trending coins right now. By now, it is trading at $237.20, as per CoinMarketCap, after it reached an all-time high of $247 on Nov. 4.
Factors that triggered the rise in SOL
According to Forbes, analysts believe several factors have pushed the price of SOL to its current highs this year.
Among these experts is Scott Melker, prominent analyst, podcaster and trader. He called Solana a legal rival to Ethereum which offers extremely fast transactions for only a fraction of the fees paid on Ethereum. Melker thinks that the stellar growth of SOL this year is largely due to growing crypto gaming and the successful launches of new non-fungible tokens (NFTs).
The developers have been creating stuff on Solana for several years now, and this fact has also contributed to the explosive rise in the SOL price and the increasing scale of adoption of the coin in the community.
One of the factors of the rising price is Solana’s ability to handle a massive amount of transactions per second.
Two months ago, in September, that amount was 400,000.
Ethereum pulling SOL higher
Several analysts, however, claim that the recent gains of the SOL token have been caused by the rise of the second-largest crypto Ethereum. The reason is that, alongside the price of Ether, the gas fees on this platform are also increasing, while Solana offers more transactions per second at much lower fees as mentioned above. Thus, investors are turning to ETH alternatives due to these factors; besides, the number of NFTs released on Solana is growing.
Since June, the ether has increased by more than 2,000%.
