[Blockchain Column] What is SOL?
Solana (SOL) is a blockchain technology known for aiming to maximize the efficiency of decentralized networks. Founded by Anatoly Yakovenko, its development commenced in 2017. Since then, Solana has gained global attention for providing an essential open-source infrastructure due to its rapid processing speed, high security, and resistance to censorship. Validators within the network play a crucial role by verifying transactions and expanding memory, thereby distributing the network’s capabilities.
The SOL token, developed through collaboration among experts and developers, boasts high reliability. This platform has minimized the risk of fraud through robust financial backing and has built an outstanding reputation through various partnerships. The SOL token is user-friendly, offers benefits from policy changes, and has ventured into the NFT market.
Recently, the Solana Foundation has clearly stated its position against the U.S. Securities and Exchange Commission (SEC)’s classification of SOL as a security, emphasizing that Solana is an open-source community-based project that grows through the participation of users and developers. This is in light of the SEC’s lawsuits against companies for trading cryptocurrencies, including SOL, as securities.
The popularity of Solana is continuously rising, evidenced by the famous comedian Steve Harvey changing his Twitter profile to a Solana Monkey Business NFT. The Solana network has become an ideal place for exploring NFT and DeFi applications, with NFT marketplaces like Magic Eden contributing to the platform’s growth.
Several factors have contributed to the surge in Solana’s value. Since its launch in 2020, Solana has experienced rapid growth but saw a decline in price following the FTX saga. Recently, its value has been recovering thanks to the continuous growth of the community, the popularity of meme coins, the activation of the DeFi ecosystem, an increase in institutional funds, and the growth of Solana-based NFTs. Notably, the listing of meme coins like Bonk and the network upgrades have positively influenced its price.
The positive market response towards Solana is also reflected in the support from experts, an increase in search engine queries, and the overall bullish trend in the cryptocurrency market. Solana’s resurgence indicates that the recent price increases in certain coins are led by fundamental factors such as technological improvements and ecosystem expansion, rather than speculative reasons.
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