Smart contracts are one of the leading factors in the growth of the use of cryptocurrencies. Ethereum remains dominant due to strong decentralization, but is inferior to more recent projects in terms of commission and transaction processing speed. So, the throughput of Ethereum does not exceed 15 transactions per second, during the same time Solana can process 50,000 transactions.
Smart contracts are actively used in the decentralized finance (DeFi) sector
At the beginning of the year, Ethereum accounted for 97.7% of blocked funds, now it has decreased to 66.7%. Solana occupies the third position with $13 billion of blocked funds and a share of 5.2%. These heights were achieved in a short period of time, since the network (mainnet) was launched only in March last year.
Even later, Solana joined the battle for NFT (non-interchangeable tokens) used in the field of digital art. The debut took place three months ago, when a collection of 10 thousand monkeys was sold in 8 minutes. The sale confirmed the high speed of the network with extremely low commissions (less than 1 cent). Now 193 NFT projects support Solana, and the turnover of NFT images using this blockchain has exceeded $900 million.
The success of Solana caused a hundredfold increase in prices and brought the network to fifth place in the overall capitalization rating with a volume of $ 64 billion. Due to the high institutional demand, the cryptocurrency became the third after Bitcoin and Ethereum, which got into the Bloomberg terminal to be able to track quotes.
Solana is gradually catching up with Ethereum in terms of the number of nodes: 982 versus 3346, respectively. The growth of decentralization, coupled with low fees and high transaction processing speed, increasingly leads to the choice of Solana by startups as the basic blockchain.
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