Solana gets a new all-time high (ATH) thanks to rally-powered by a decentralized app.
The total value locked (TVL) in Solana has exceeded its previous ATH according to DefiLIama. The TVL has been moving with a strong connection with the market price. SOL reached the new record high of $231 following the 16.7 percent rise.
Because Solana token is a major component of the network, an increase in demand due to the growth of DeFi as well as NFT industries has a positive effect on the SOL price. To launch an application on the Solana network, or to build the NFT collections, customers need to buy SOL tokens first.
In the present market, the decentralized applications are gaining the spotlight, which has attracted more investors to Solana as a result SOL succeeded in additional buying capacity.
Solana gained popularity after the NFT market exploded. Due to Ethereum network scaling issues some users had to shell out thousands of dollars to make transactions, as a result, Ethereum Killers like Solana gained a major reputation because of their low fees structure.
With more convenient fees and transaction processing options, Solana users can make low-cost transactions in the midst of high traffic on the network.
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