Solana reaches a new ATH thanks to a rally powered by a decentralized application
Solana’s total value locked has reached the previous ATH and moved slightly above it, according to DefiLIama. TVL is moving with a strong correlation with price, which hit a new high of $ 231 after rallying 16.7%.
Due to Solana being heavily utilized inside the network, a higher load due to the development of the DeFi and NFT industries acts positively on the price. In order to deploy a decentralized application on the Solana network or to create an NFT collection, users must purchase a SOL token.
In the current market, decentralized applications are experiencing a new wave of popularity, which once again attracts more investors into Solana and creates additional buying power.
A variety of Solana use cases create strong buying power in the market whenever crypto receives investor attention. Solana received an initial boost in popularity when the NFT industry skyrocketed. Due to scalability issues on the Ethereum network, some users had to pay thousands of dollars to complete a transaction.
With a more convenient fee and transaction processing mechanisms, Solana users are able to make cheap transactions even in periods of high network load.
According to TradingView, the previous ATH for Solana was reached on October 25, when the coin’s price hit $ 209. The old price record has been beaten in only eight days, with the asset now trading at $233.
