Solana has slowly become the cryptocurrency sweetheart in 2021. The smart contract platform became popular in the third quarter of this year as it rebounded to a record high after the massive adoption of blockchain. Soon after, the blockchain was listed as an “Ethereum killer”, making it to compete with companies such as Ethereum and Cardano.
Since then, Solana has lived up to expectations because it is grabbing more market share every week. As investors look for cheaper alternatives to Ethereum, decentralized finance (DeFi) services on the blockchain quickly take off.
Related Reading | Cardano active addresses hit a new high in a downtrend
Compared with Ethereum, Solana still occupies a small share in the DeFi market, but the blockchain has rapidly grown into a force that cannot be ignored.
Solana takes the lead in staking
Competitor Cardano has long boasted as the network with the most collateralized cryptocurrencies. Now this title has been stolen by Solana as staking rise on the Internet. Now, its total value on the blockchain is ahead of Cardano and Ethereum.
Staking has become one of the main ways for investors to obtain passive income while holding tokens. Given that these networks provide attractive revenue to users, this has driven the rise of digital assets such as ETH and ADA to the forefront of the market.
However, compared to rivals Ethereum and Cardano, Solana offers some of the highest gains and therefore quickly became the network of choice. On November 23, when the total value exceeded $84 billion, Solana became the network with the highest token value. This number is just ahead of the market leaders Cardano and Ethereum.
Solana staked value surpasses Cardano | Source | Staking Rewards
Solana’s rate of return currently accounts for 77.37% of its total supply, with an annual rate of return of 6.79%. In contrast, Cardano holds 70.5% of the total supply, with an annual rate of return of 5.71%, while Ethereum only holds 6.85% of the total supply, with an annual rate of return of 5.2%.
Make way for the “Ethereum Killer”
As competition in Ethereum has intensified, activities on other smart contract platforms have also increased. Although the network still sees the most active activity minted by DeFi and NFT, others such as Solana and Cardano are crawling on the blockchain.
In November, Cardano’s Network activity has been much higher than Ethereum, It is recommended to use the former more. Similarly, activities such as NFT casting and DeFi services on Solana are also increasing, and Cardano expects its first DEX to be launched soon.
Related Reading | The founder of Cardano solved the liquidity problem of eToro’s delisting
Cardano also recorded a surge in the number of new mortgage wallets, exceeding Added 100,000 staking wallets in two monthsIn addition, Cardano’s New and active wallets have increased dramatically For November, it shows that the adoption rate is getting higher and higher.
Solana was highly praised by FTX founder Sam Bankman-Fried, who praised this cryptocurrency as Become a potential candidate for the next Bitcoin.
SOL maintains value above $210 | Source: SOLUSD on TradingView.com
Featured image from CNBC, chart from TradingView.com