Crypto trader Lark Davis says five fundamental factors are fueling the meteoric rise of the smart contracts platform Solana (SOL).
In a new video, Davis tells his 427,000 YouTube subscribers that SOL is exploding because developers are actually building on its blockchain.
For example, you have Port Finance (PORT). That’s one of Aave’s competitors that we’re seeing come up on Solana. We have Mercurial Finance. That’s like Ethereum’s Curve Finance. It’s a stablecoin-swapping protocol. We have Radium (RAY), which is like Uniswap (UNI).”
The rise of non-fungible tokens (NFTs) is also contributing to the growth of Solana, according to Davis.
“NFT has been a massive trend recently. Solana’s got a lot of NFTs, too. That’s been part of what has been driving the demand: to get the main Solana asset, the SOL token, because people want to go and buy NFTs on Solana, which are priced in Solana.”
Davis says Solana’s financial situation is also helping fuel the token’s rise. The company raised $314 million in June to bolster its decentralized finance (DeFi) ecosystem.
“Part of the reason we’re seeing so many developers committing to the SOL ecosystem right now – they’re getting money. They’re getting grants. They’re getting a lot of investments…
Davis says that large financial institutions are also starting to take an interest in Solana.
Davis also looks at the total value locked (TVL) in Solana’s ecosystem, which has exploded to over $5 billion. The Crypto trader predicts that Solana’s TVL will continue to grow as market participants seek to provide liquidity and generate yields without paying hundreds of dollar worth of transaction fees.