Solanas SOL Token rose to the seventh most valuable cryptocurrency this week, Overtaking Dogecoin on Tuesday and rose 26 percent to a record high of $ 125.98.

In the past month it has increased by almost 220 percent.

The token only debuted 18 months ago but is now valued at over $ 30 billion. So what are the reasons for Solana’s rise into the cryptosphere?

The main reason Solana has received so much attention lately is because of the network’s entry into non-fungible tokens (NFTs), which can be anything digital like art or music that is being sold with technology.

Solana founded the Degenerate Ape Academy, which sold a collection of images of cartoon monkeys. 10,000 of these were sold in the first 10 minutes, which then drove the SOL token higher as people needed the cryptocurrency to buy the cartoon monkeys.

Solana was also backed by the NFTS rally in August, which achieved record sales of approximately $ 900 million.

Solana has also focused on DeFi (decentralized finance) projects over the past few months, which exclude financial institutions and intermediaries and execute financial transactions over the blockchain.

What is Solana doing differently?

Solana has prioritized smart contracts, which are programs stored on the blockchain that run when predetermined conditions are met, and automate agreements so everyone is sure of the outcome. You do without intermediaries and speed up the process.

This has enabled Solana to take advantage of the NFT market and DeFi.

But other cryptos like Cardano are also planning to enter the smart contract area, so that there will likely be increased competition.

Solana also uses Proof-of-History (PoH) consensus, which means messages are grouped so that there is evidence and a record of the time of each message. The concept enables greater scalability and confidence in the blockchain.

One of the network’s other main promises is that its users won’t be surprised by increased taxes and fees.

Traders have also speculated about a possible new feature that Solana is slated to launch in early September, but little is known about what the feature might be.

Is Solana a rival for Bitcoin and Ethereum?

Solana raised more than $ 7 million in investments in the past week, according to crypto investment company CoinShares. While Bitcoin posted an investment loss of $ 2.8 million. However, it is unlikely that Solana will displace Bitcoin from the top anytime soon.

Solana is seen more as a rival to Ethereum as the technology is cheaper and claims to offer a faster transaction speed with 50,000 transactions per second.

Are there any threats to Solana?

As more blockchains begin to use smart contracts and move into NFTs, Solana will face more competition in the area it has created.

But there is another threat. Crypto regulation in China caused Solana’s price to drop 60 percent this summer amid the crypto market crash.

The United States is also investigating the cryptocurrency market, which could pose another threat to the values ​​of all tokens.