Ethereum Alternative Solana Gets USD 40M Boost
Solana (SOL), the Ethereum competitor, the Ethereum killer, the proof of stake protocol, you can name whatever you want to this emerging and highly in the demand blockchain network. Since its launch in 2020, people have massively invested in it and last year Solana recorded a paramount increase in growth. Solana grew by a record 16000 percent, while some people may call it the “Ethereum killer” others see it as a great opportunity and invest a great amount in it. The rapid growth in this new cryptocurrency is remarkable. Within a few months of its release, it has become the sixth biggest cryptocurrency by market capitalization.
Recently, Solana foundation has released an email press stating that they have partnered with OKEx and MXC exchanges and the combined funds from this partnership will bring an almost USD 40m capital that will be utilized in the development of the Solana ecosystem. These funds will also help Solana launch decentralized apps and protocols to the market. Solana also plans to use this investment in expanding and growing their projects.
These two partnered companies will not only support Solana with the finances but also with resources. OKEx is mainly responsible for providing Solana with the required financial assistance.
OKEx’s investment arm Black Dream Fund will help support Solana’s projects financially. Black Dream Fund will not only support Solana in completing their projects but will also help in their worldwide marketing.
As reported by the founding partner of Black Dream Fund, Dora: “the partners will work together to expand the market size and user volume of the blockchain industry, and continue to create value.”
On the other hand, MXC will be supporting Solana with all the necessary resources and guidance required to complete the projects under Solana. MXC will be helping Solana projects reach the Asia institutional and retail markets. The vice president of MXC Katherine Deng has stated,
“the exchange aims to foster closer collaboration with the most promising blockchain ecosystems, and this investment sets forward our belief and commitment to shepherding the success of the dapps and platforms built on Solana.”
Created in 2018, MXC is a giant exchange expanding in almost five countries and is earning a generous profit through the daily trade volume of approximately USD 4bn. MXC has almost 752 pairs of compliance licenses in these five countries.
The founder and president of Solana foundation, Anatoly Yakovenko, said in an interview that “the Solana ecosystem has grown multitudes in the past few months with the volume of projects and active developers skyrocketing quarter over quarter.”
Reports have discovered that Solana’s network has been exponentially growing and has over 560 active community validators around the world with almost 70m blocks generation and an average of 14bn transactions.
One thing that differentiates Solana from Ethereum is the number of projects that both networks hold. Although Ethereum was the first network but Solana has more projects than Ethereum. A report suggests that the Solana ecosystem has almost 350 running projects.
Solana also has a remarkable speed, it runs much faster than Ethereum with almost 50,000 transactions per second on its blockchain and hence is the fastest growing cryptocurrency. Ethereum is the second-largest cryptocurrency in the world but because of so many people using it the space on Ethereum is congested and, therefore, people are looking for an alternative to it. Solana has proved itself more capable than Ethereum and, therefore, has attracted a large community of crypto users.
In 2020, Solana initiated its main net beta also and since then has worked with big names like Serum (SRM), Chainlink (LINK), Terra (LUNA), USD Coin (USDC), and Tether (USDT) and has redistributed them on its blockchain.
Recently, Solana foundation introduced almost 50 new projects, designed and created as per market standards, the projects included decentralized finance (Defi) applications, markets for non-fungible tokens (NFTs), and infrastructure that supports the next generation of Web 3 companies.
Even though the Defi ecosystem on Solana is at its initial stages Solana has launched many dApps on its network and all this is because of the great marketing techniques of the foundation. One of the most popular and important dApp on Solana blockchain is Raydium, developed by automated market maker (AMM) and liquidity provider for Serum DEX. Raydium was built on the Solana blockchain in April 2020, this app helps users in trading and has managed to amass almost $1.8B.
The CEO of Alameda Research considers Serum as “an antidote to Defi struggles.”
Even though Solana has shown massive growth and the investments have gone up it is still cautionary to note that cryptocurrency investments are very volatile and if the prices can go up rapidly they can also fall very quickly. So, it is advised by the experts and analysts that it is just wise not to have more than 5 to 10% cryptocurrency exposure of their portfolio.