Continuing its upward trend in recent days, Solana was able to raise its price record for the third time in the last seven days and cross the level of $ 90. Solana’s remarkable growth shows that institutional investors are keen to buy this digital currency.
to the Report Decrypt, the digital currency of Solana, one of Ethereum’s main competitors, rose 22.7 percent to $ 83.21 yesterday, breaking its previous high of $ 78.63. At the time of writing, each Solana unit is trading at around $ 92 and has grown by 11% in the last 24 hours.
Solana was able to consolidate its position as the tenth digital currency in the market with yesterday’s price growth.
Solana’s network, like Ethereum, is based on smart contracts. Smart contracts execute a set of commands written using conditional programming code (If-Then), which is something like “IFTTT” but designed specifically for digital currencies. Using smart contracts, Solana has made it possible to build decentralized applications and provide financial services on its network.
The Solana blockchain is designed in such a way that “SOL” tokens are extracted by the network itself using a stock proof mechanism. This means that Solana is much more environmentally friendly than Bitcoin and Ethereum, as both networks now use a proof-of-work mechanism.
In work-based networks, people are able to verify a larger portion of network transactions with more hardware and, of course, higher electricity bills. On the other hand, in stock-based networks, those who have more shares than others can approve more transactions.
Ethereum hopes to upgrade its Blockchain mechanism from proof-of-work to stock-proof by updating the network to version two.
Also read: Proof of work and proof of stocks, concepts and differences
The issue of energy consumption is not the only criterion that has made the Solana network superior to the Ethereum. Solana can process about 1,000 transactions per second, and according to the network’s developers, this figure could theoretically increase to 50,000 transactions per second. Solana has much more processing power than the Ethereum network, which can only process 15 transactions per second.
The rise in Solana prices in recent days shows that investors are very willing to buy this digital currency, while the Solana network has been affected by negative news over the past week.
Earlier last week, a protocol called Luna Yield stole $ 6.7 million from the Solana network by defrauding its investors. However, in the digital currency space, a broken apple does not necessarily infect other apples.
Two days ago, Osprey Funds was able to offer its customers the first investment product in Solana, surpassing the giant of the digital currency investment industry, GreeSkill. The investment fund in Solana Osprey Funds received the license of the US Securities and Exchange Commission last Tuesday.
The move shows that this one-year digital currency enjoys widespread support from institutional investors.