Sol token grabs the 7th position in the crypto market, leaves doge behind

Sol token, the utility of Solana Network, has left doge behind and reached 7th position by gaining a market capitalization of $40 billion. The next target of Sol is Ripple with a market cap of $62 billion.

The price of Solana’s token, Sol, has tripled in the last three weeks and its market capitalization has reached $41.3 billion crossing the dogecoin by almost $1.5 billion. Sol token is considered to be the competitor of Etherum because it also provides a way to build decentralized finance and decentralized apps with various advantages. The next target of Sol is Ripple which has a market cap of $62 billion.

Sol token
The Price chart of Solana’s token Sol
Source: Tradingview

Main reason for price boom of Sol token:

The main reason for this price boom is the features of Sol token like very low transaction fees. For example, a long-term competitor of Sol, Etherum’s gas fees sometimes are as high as $200 but Sol has an average transaction fee of $0.00025.

The capitalization of DeFi (Decentralized Finance) and NFT (Non-Fungible Token) is another reason for the price boom of Solana’s token. FTX exchange CEO is also supporting the Solana. People chose Solana and Binance smart chain because of the high transaction fees of Etherum which sometimes increases from the main price of the project.

Sol token developers have raised more than $3 million from the investors like Bankman-Fried’s Alameda Research, Andreessen Horwitz, Polychain Capita, and CoinShares. Pyth Network and On-chain went online on the mainnet of Solana last month.

Sol token is a good project and that’s why a lot of people are investing in it. Another reason can be the bullish movement of Bitcoin because if BTC moves 10% the altcoins rally 40-50%. So far the project is doing good but no one knows whether it will be able to compete with the Etherum or not.

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About mnmansha

MN Mansha is a cryptocurrency expert, trader, and content writer with extensive experience in covering everything related to digital assets — from price analysis to Blockchain disruption. Mansha authored 100+ stories for NewsBSC.com and other fintech media outlets and he's actively writing more every day. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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