Solana returns to the top 10 cryptocurrencies by market capitalization

The native blockchain token Solana (SOL) has outperformed one of its main competitors Polygon (MATIC) and regained its place in the top ten in terms of market capitalization.

Solana is a third-generation blockchain that supports a variety of DeFi solutions, including the development of decentralized applications (DApps) and smart contracts. Unlike other networks, it uses a hybrid consensus algorithm that combines Proof-of-History (PoH) with Proof-of-Stake (PoS). This allows Solana to perform up to 50,000 transactions per second.

Before the Terra ecosystem collapsed in May 2022, SOL’s capitalization was three times higher than MATIC’s — $ 16.8 billion versus $ 5 billion. However, the fall of FTX devalued the token. The founder of the infamous crypto exchange, Sam Bankman-Fried, was one of the most prominent supporters of the protocol, and his venture capital dollars were widely distributed across the Solana ecosystem. That’s why the asset’s price dropped by 70% in the weeks after the November crisis.

Although SOL is currently only 1.5% ahead of MATIC in terms of market capitalization, the project has a chance to maintain its current position or even move up a notch. Recently, several interesting events have taken place in the ecosystem: the Solana Saga branded Android smartphone with pre-installed Web3 applications, similar to HTC’s Exodus line, has become available for public order. In addition, the community of the Helium decentralized network (HNT) voted to abandon its own blockchain and switch to Solana.