The whole crypto market exploded recently, and the most important coins have been getting closer to previous ATHs.
SOL in the crypto market
Some smaller coins, such as Ethereum competitor Solana (SOL), managed to hit a new ATH. SOL traded at $145, and at the moment of writing this article, SOL is still trading in the green.
The digital asset managed to hop on the 7th spot on CMC, and it’s now priced at $143.82.
Solana became the first altcoin in the crypto market to record a new ATH post-May crash.
After that, it’s also worth noting that it was joined by the likes of Cardano ($ADA) and Terra ($LUNA).
Looking at CMC data, Solana started the month under $40 and is now looking to test $150 next.
The coin has been seeing its market grow over 400% in a little over a month’s time.
The altcoin’s price momentum is more than likely associated with the rapid growth of the Solana ecosystem as the long-term on-chain activity nears new highs.
CMC notes the following:
“the social crowd sentiment has also been behind $SOL for quite some time now and spiked highest on August 31.”
The platform also noted that the crowd sentiment is generally measured in terms of social media activity which spikes as the popularity of the token rises.
We recently addressed five reasons for SOL’s success, and we recommend that you take a look at our previous article.
Solana’s popularity is on the rise
Solana has been making a lot of headlines all over the crypto space, and the reasons for this growing popularity are varied.
It’s also important to note that the huge demand for Ethereum block space has led to network congestion, and this obviously resulted in very high transaction fees.
This congestion has created various opportunities for Layer 2 solutions, sidechains, and new Layer 1 networks – these are aiming to build scalable dApps beyond Ethereum. Solana is one of these Layer 1 networks.