Solana Reaches Three-Month Peak 

Solana is a blockchain that uses the SOL cryptocurrency. It recently hit a three-month high in value. We delve into why it has gained so much value in the article below. 

Solana has managed to rally and is now trading at around $180 according to major exchanges. It has moved up 16.3% over the last month, peaking at the highest point it has been in three months. On top of this, October 26th saw 42.5 million SOL in deposits on the network, the highest in around two years. 

Solana’s Continued Popularity

SMART contracts and their value has also hit a 2-year high. This also shows heightened confidence in the network. It has overtaken Ethereum in volumes for decentralized exchanges. In one week, the Solana price had a 19% increase, while in the same time period, Ethereum reached 5%. Much of this growth came from the Memecoin sector. Moo Deng, Maximus, and Nosana all rose in value. There are predicitions that this could lead to a Solana bull run. 

Approval of Solana ETF as a Contributing Factor 

Another factor that could have contributed to this spike in price is the filing for a possible spot Solana ETF in the United States. Filed by Canary Capital, it is the third company to apply for one after the introduction of Bitcoin and Ethereum ETFs earlier this year. Other applicants who have also filed for them include companies VanEck and 21Shares. 

An ETF is an exchange-traded fund. It allows investors to buy stock in a company that holds an asset or basket of commodities. They’re a way for traditional finance investors to make moves into cryptocurrency while also hedging against the inherent volatility in them. 

The Securities and Exchanges Commission took a long time to decide on the introduction of ETFs for cryptocurrencies. However, they approved Bitcoin ETFs in January and followed it with Ethereum-based ones in May. To date, Bitcoin ETFs have been successful with only a few major outflows. Ethereum ETFs have fared less well but have stabilized in the last two months. 

Currently, Solana is used for a number of decentralized applications, such as memecoins and smart contracts. However, it is being viewed as a rival to Ethereum and, by all means, is on track to overtake it. This is down to faster execution speeds and lower gas fees. Its value has soared over 400% in the last year, with a market cap of around $82 billion. 

Solana-Based Stablecoins Providing Practical Application Uses 

Another reason Solana has become so popular so quickly is its ability to provide real-world solutions to problems. One example of this is the startup AgriDex, a marketplace that brings agricultural goods to blockchain rails. Using the platform Bridge, it can make speedier and cheaper transactions for agricultural businesses. 

The beauty of this is that users do not even have to use cryptocurrencies to operate the system. Sending and receiving paymentscan be done in their local currencies. This uses the blockchain and the USDC stablecoin. 

A stablecoin is a cryptocurrency. They are made much more stable by pegging them to the price of a fiat currency. In the case of USDC, it is the US dollar. By doing so, it makes a more stable cryptocurrency that is useful in financial transactions. 

It is one way in which stablecoin technology, built on the Solana Network, is proving popular in emerging markets. The founder of Agridex has noted that he grew up in Zimbabwe, where fluctuating currency made foreign trade extremely tough. This follows similar schemes in Nigeria, where governments are planning on using blockchain-based land registry to clear a backlog of applications and cut down on land fraud. 

First Digital Trust Expands FDUSD to Solana 

First Digital USD is a stablecoin created by First Digital Trust. It is the fourth-largest stablecoin by market capitalization. The coin is issued through Hong Kong digital asset rules and is backed by US Treasury bills. This keeps its value anchored at $1. 

In a show of solidarity with the Solana network, the Hong Kong-based issuer is now expanding it to the network. It already has products on Ethereum and the Binance Smart Chain. A statement from First Digital Trust described the transactional output of the network as the ideal solution for real-time payments. They also added it was part of their plan to create a reliable stablecoin ecosystem. The coin currently has a market capitalization of $2.5 billion. 

Solana is rising in value. It is already providing real-world solutions to problems, allowing people to create stablecoins for transactions and smart contracts. It is also a solution to large administrative tasks undertaken by governments and institutions. This can only make its value rise further. The key factor in its growth will be decided in its battle with Ethereum to see which blockchain comes out on top.