One of the fastest growing cryptocurrencies in 2021 has been Solana (CRYPTO: SOL). The poof-of-stake and proof-of history based cryptocurrency has surged in popularity and has also seen new non-fungible token projects use its blockchain over well-known Ethereum (CRYPTO: ETH), which uses a proof-of-work model that requires high gas costs for transactions.
Solana Launch: Solana was launched in April 2020 and has gained popularity over the last 18 months. The price of Solana has surged from $0.75 to a high of $214.96 in early September.
The introduction of NFTs on the Solana network has helped increase awareness of the cryptocurrency and also the valuation of the cryptocurrency.
Degenerate Ape Academy is one of the most well-known Solana NFT projects. The NFT project sold 10,000 apes in 10 minutes. A seven figure sale of a Degenerate Ape Academy NFT was announced recently, bringing more attention to the NFT project and Solana.
Investing $1,000: On Jan. 1, 2021, Solana had a high trading price of $1.86. An investor who put $1,000 into Solana on the first day of 2021 could have purchased 537.63 SOL.
That $1,000 investment on Jan. 1, 2021 would be worth $84,596.29 today based on a current price of $158.02 for Solana at the time of writing.
Solana is currently the seventh largest cryptocurrency by market cap at $46.88 billion, according to Assetdash.com . Solana has gained 108 positions on the site that ranks stocks, ETFs, cryptocurrencies and NFTs. Solana is ranked 288th overall.
With the demand for new NFT projects launching on Solana increasing, the price of Solana could keep rising . NFT collectors and investors are starting to diversify their portfolios by owning NFTs across several cryptocurrencies or transitioning to Solana to avoid high gas fees.
There will be competition coming for Solana and Ethereum in the future as more cryptocurrencies look for ways to take advantage of the rising interest and valuation in NFTs.