Solana is Raising Up To $450 Million to Challenge Ethereum

Wednesday 09 June 2021, 1:00 PM AEST - 1 week ago

Solana is challenging Ethereum’s lion’s share of the decentralised applications market after rumours emerged it will receive a funding injection of between US$300-450 million.

Solana is making real progress towards positioning itself as the preferred blockchain on which the next generation of dApps are built, powering DeFi, NFTs and gaming. We also saw recently that SOL was listed on Coinbase Pro, which also boosts its tradability.

While Ethereum has struggled to meet the booming demand in the market as increased adoption has resulted in painfully slow transaction wait times and soaring gas prices, the current congestion issues have opened up the space for new contenders.

Cheaper, Faster and Highly Scalable

Solana’s open-source proof-of-stake blockchain aims to solve the traffic bottleneck on the Ethereum network. Solana’s advanced scalability offers dApps built on its blockchain lightning-fast performance at significantly cheaper costs to those built on Ethereum. Currently, Solana can handle more than 50,000 transactions per second, while Ethereum averages only 10-15 transactions per second. On its website, Solana boasts a low average fee of only $0.00025 per transaction.

The funding round for Solana was due to close in March but was extended due to strong interest. Solana has not released an official statement but, in a recent interview, executives did not deny it, commenting:

This information wasn’t shared by our team …We won’t be able to assist with any additional commentary around this as it’s not officially being released by Solana.

Solana spokesperson

According to Forbes, if the rumoured sum raised amounts to even $300 million, that would place it in the top six venture capital rounds in crypto and blockchain to date. It will be interesting to see if Solana comes under scrutiny from the SEC, who may deem the SOL tokens as securities and thus subject to regulatory challenges.

Learn more about the Solana project on the Solana Podcast.

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