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Why Are Cardano (ADA), Avalanche (AVAX) and Solana (SOL) Rising?

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In early 2023, Cardano (ADA), Avalanche (AVAX) and Solana (SOL) have demonstrated significant growth. These cryptocurrencies, often referred to as “Ethereum killers,” are garnering increasing attention from investors due to their potential utility and advantages. Compared to Ethereum (ETH), which currently experiences slow transaction speeds and high transfer fees, these alternative blockchain solutions offer efficient, low-cost propositions.

Cardano, the leading competitor in terms of market capitalization on our list, has achieved scalability through the implementation of the Ouroboros consensus engine, a proof-of-stake (PoS) cross-chain algorithm. Unlike proof-of-work (PoW) algorithms, which require validation of each transaction by all nodes on the network, Ouroboros utilizes a randomized selection of nodes for transaction validation. As the network increases in size, this results in an overall increase in scalability.

Avalanche, in contrast, achieves scalability through the utilization of a decentralized subnet architecture known as Avalanche-X. This architecture enables the AVAX network to efficiently manage multiple subnets, each with distinct consensus configurations and governance protocols. Additionally, the network is divided into small groups of nodes, which work cooperatively to facilitate swift transaction processing.

Solana aims to achieve scalability through its implementation of a hybrid consensus model, which combines proof of stake (PoS) and proof of history (PoH). PoH is a protocol that creates a historical record to confirm the occurrence of transactions at a specific time. This approach allows the network to achieve high scalability as it eliminates the need for every node to validate every transaction, thereby reducing the requirement for significant computational resources.

Having gained an understanding of the scalability mechanisms employed by each of these alternative coins, it is worth examining the reasons behind the growing enthusiasm for Ethereum’s rivals.

Cardano

Since the start of the year, ADA has seen a 41% increase in value. This robust performance can be attributed to a combination of factors, including the introduction of new features, high development activity and substantial investment from major investors. Additionally, the creation of stablecoins, decentralized oracles, sidechains and dApps optimized for EUTxO are contributing to the upward trajectory of the cryptocurrency.

Cardano has consistently demonstrated its potential to not only rival Ethereum but to also provide cost-effective and high-quality decentralized solutions and capabilities for developers. This has resulted in an increasing level of attention and interest in the cryptocurrency market.

Avalanche

Avalanche has successfully distanced itself from the negative impact of the Terra (LUNA) ecosystem collapse in May 2022 by forming strategic partnerships, expanding its presence on the stablecoin market and actively engaging with its community. Community engagement is a vital aspect for the longevity and success of a cryptocurrency.

The development team at Avalanche has made significant efforts to enhance the functionality of its network and provide support for decentralized application developers. These efforts have been instrumental in making the Avalanche blockchain more robust and scalable, which has contributed to its 54% growth in market capitalization in the early days of 2023.

Solana

Lastly, Solana has emerged as the top performing altcoin in this analysis, with a 139% increase in value since the start of January. The cryptocurrency has managed to separate itself from the negative impact of the decline of Alameda Research and FTX and has seen a rise in trading volume, network activity and a boost thanks to a meme token.

Recently, Anatoly Yakovenko, the founder of Solana, announced several improvements aimed at ensuring the stability and scalability of the network, and preventing downtime similar to that experienced in the previous year. These enhancements have the potential to propel SOL to new heights and attract more decentralized applications to its platform, thereby driving continued growth and solidifying its position on the market.



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Solana (SOL) Sustains Second Week of Inflows as Blockchain Sentiment Improves

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According to CoinShares data, digital asset investment products saw $117 million inflows last week, the largest since July 2022, while total assets under management (AuM) have risen to $28 billion, up 43% from their November 2022 lows.

While the focus seemed to be almost entirely on Bitcoin, which saw $116 million in inflows last week, altcoins such as Solana saw inflows as well.

Solana is sustaining its second week of inflows as sentiment around its blockchain has generally improved. Solana investment products saw inflows of $1.1 million in the past week, surpassing those of the previous week, where inflows of $0.1 million were recorded.

Solana saw a remarkable rebound after declining over 42% in the wake of the FTX implosion. Once dubbed an “Ethereum killer,” Solana was once the darling of FTX co-founder Sam Bankman-Fried.

In late December 2022, Solana’s token price steadily declined before plunging by as much as 20% on Dec. 29. Following Ethereum founder Vitalik Buterin’s support tweet, SOL’s price has more than tripled since then.

The January price bump has seen the cryptocurrency reclaim the $26 level as its price has risen. According to CoinGecko data, SOL is up 1.3% in the last seven days and 149% higher in the last 30 days. The crypto asset traded at $24.58 at press time.

SOL reclaimed the 10th spot on the list of largest cryptocurrencies by market cap before losing this spot to Polygon MATIC at press time.

Earlier in January, Citi Research published its report on Solana, saying that activity on the blockchain remained high. It also noted that a handful of key metrics had returned to pre-FTX-collapse levels, suggesting relief for some users on the chain.



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Solana-based Friktion urges users to withdraw funds as it halts front-end operations

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Solana-based DeFi platform Friktion has urged its users to withdraw their funds from the protocol, as it moves to suspend all frontend operations.

The Friktion team said it made the tough decision to suspend its operations due to the worsening financial crisis resulting from the FTX collapse and Solana’s repeated outages.

Specifically, the platform’s operating cost is said to be too expensive when compared to its profit and cash flow.

As a result, Friktion announced on Jan. 27 that it has disabled its frontend interface to prevent users from initiating new deposits.

However, the platform is in “withdrawal-only mode” to allow users to withdraw their Volt deposits.

“In the meantime, we strongly encourage users to withdraw funds as the Friktion user platform begins the process of sunsetting,” the Friktion team said.

Before the recent insolvency crisis, Friktion reached over $150 million in total-value-locked (TVL) on Solana and recorded about $3 billion in trading volume, DeFiLarma data shows.

The post Solana-based Friktion urges users to withdraw funds as it halts front-end operations appeared first on CryptoSlate.



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Solana (SOL) Migrating to New NFT Standard in Next 60 Days

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Sharky.fi, an NFT lending protocol on Solana, has shared information on the migration to a new standard of NFTs.

As stated in a thread of tweets, Solana is migrating to “programmable NFTs,” or pNFTs. This refers to a new standard of NFTs introduced by Metaplex to help creators get their royalties back.

Metaplex refers to the Solana-powered protocol that allows for the creation and minting of non-fungible tokens, auctions and visualizing NFTs in a standard way across wallets and applications.

The new asset class, “programmable NFTs,” will exist alongside “normal NFTs” and may likely become the predominant standard for royalty enforcement going forward.

The pNFT standard would allow creators to decide which protocols their NFTs are or are not allowed to interact with. This would be achieved by modifying allow-and-deny lists.

According to Sharky.fi, most of the top marketplaces, AMMs, lending protocols and staking protocols are actively working on adding support for it. It further indicated that a decent chunk of the NFT collections on Solana might migrate there in the next 30 to 60 days.

Already Solana’s crypto wallet for DeFi and NFTs, Phantom has indicated support for the Metaplex royalties enforcement standard with programmable NFTs, saying “pNFTs represent a huge step forward for the ecosystem and its creators,” while adding it was on track for a Feb. 15 release across all platforms.

Programmable NFTs now deployed on mainnet

As stated on the official Metaplex Twitter handle, programmable NFTs have now been deployed on the mainnet.

It urges developers, marketplaces and wallets to use the latest stable version of token metadata to integrate the new pNFTs’ instructions.

It further adds that creators would only be able to upgrade existing collections to pNFTs with royalties enforcement when more than 50% coverage of the new asset class has been reached across marketplaces and wallets.





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