Popular cryptocurrencies expert Lark Davis, a seasoned investor in digital assets, listed the most influential catalysts behind the eye-watering rally of Solana (SOL).
Technology and ecosystem
According to Lark Davis in a tweetstorm, the upsurge of the Solana (SOL) price is driven by both fundamentals and sentiment. To start with, the expert claims that Solana (SOL) technology is more powerful than that of its rival Ethereum (ETH).
Solana has far more impressive throughput and negligible fees, Mr. Davis adds. Also, Solana (SOL) can scale without Layer 2 solutions unlike Ethereum (ETH).
Then, Solana (SOL) managed to attract builders from both the DeFi and NFT segments. Almost every top-tier Ethereum DeFi protocol has its own Solana-based copycat.
The GameFi explosion on Solana (SOL) may be the next step in this mania.
Institutional money is coming to Solana (SOL)
The Solana (SOL) ecosystem garnered a lot of attention from VCs of all types. Since June 2021, a whopping $314 million in funding has been supported by Andreessen Horowitz, with many funds invested in Solana-based products.
Some of them even launched dedicated funding programs to bootstrap the Solana (SOL) ecosystem. Solana-based projects are completing multi-million-dollar rounds here and there.
As covered by U.Today previously, Solana-Based DeFi Cyclos raised $2.1 million to bring a new type of automated market-maker to Solana.