Solana and Polygon, two scalable Ethereum alternatives, are leading the altcoin charge today, as crypto markets rose 2.74 percent overnight.
Solana has set new all-time highs over the last few days, including today, after briefly entering the top ten cryptocurrencies by market capitalization earlier this week. According to crypto data aggregator Nomics, the SOL token briefly reached an all-time high of $78.63 in the early hours of this morning UTC.
Solana’s price has since fallen slightly. It is currently trading at $78.17, representing an 8.91 percent increase over the previous day. Solana’s price was under $40 at the start of last week, so SOL has increased by around 100% in the last two weeks.
Over the last week, Solana has received a slew of DeFi and NFT-related good news. Degenerate Ape Academy’s NFTs went live on the Solana blockchain on Sunday. The digital collectibles were gone in less than eight minutes. The most expensive digital ape was resold for 100,001 SOL, or more than $6.2 million at the time of purchase, less than 24 hours later.
On Tuesday, the Solana network passed the $2 billion mark in total value locked in DeFi protocols, setting a previous ATH of $74.08 for SOL. Solana is sometimes referred to as an Ethereum killer, owing to the fact that the Solana blockchain incorporates smart contracts, an innovation pioneered by Ethereum, and because Solana is currently more scalable than Ethereum.
The Solana network mines SOL using a proof-of-stake consensus mechanism that consumes far less energy than Bitcoin and Ethereum’s hardware-intensive proof-of-work consensus model.
Ethereum is expected to switch to PoS later this year. While Ethereum supporters wait for that to happen, Solana claims to have already solved some of the problems that Ethereum users face, such as scalability.
Solana processes 1,365 live transactions per second and claims a maximum capacity of 50,000 TPS, far exceeding Ethereum’s currency capacity of about 15 TPS.
Solana isn’t the only Ethereum alternative that’s on the rise right now. Polygon, a layer-2 solution that sits atop the Ethereum blockchain and alleviates much of the burden of transaction validation, is also on the rise right now. The native MATIC token on the blockchain increased by 12 percent overnight to a new price of $1.68. That is still a long way from its previous all-time high of $2.45, which was set in mid-May of this year.
Polygon announced plans to launch a Polygon Ecosystem DAO on Thursday, which will bring together the network’s disparate DAOs. Polygon will use a portion of its $150 million #DeFiForAll fund to establish and sustain the organization.
Polygon also announced a $250 million merger with Hermez, another Ethereum scalability solution, last week. Holders of Hermez’s native HEZ token will be able to exchange their tokens for MATIC at a 7:2 exchange rate, and Hermez’s layer-2 roll-up technology will be integrated into Polygon’s suite.