We end this week with more coverage on Solana, a disrupter blockchain whose native cryptocurrency SOL has just taken over Binance’s BNB token as the world’s fifth largest cryptocurrency by marketcap. SOL’s latest rally is directly attributed to some major institutional deals and investments that are shaking up the crypto, blockchain, and traditional finance space. Among these was the sealing of a private placement deal for a US-based medical company to raise $1.6 billion to buy SOL. The Nasdaq listed Forward Industries (FORD) aims to be the largest public corporate owner of Solana.
To top that off, one of FORD’s backers in the deal, Galaxy Digital, has just acquired 2.31 million SOL worth some $542 million. Galaxy Digital’s CEO Mike Novogratz is calling this period the “season of SOL,” saying Solana is tailor-made for financial markets, citing its speed and high transaction capacity. The billionaire investor emphasized Solana‘s cost-effectiveness, scalability, and speed as crucial benefits that establish it as “an infrastructure layer for financial markets”.
The total transactions executed on the Solana blockchain on a daily basis are about 14 billion. According to the Novogratz, this exceeds the total transactions recorded in equities, bonds, commodities, and foreign exchange (FX) combined. “So you’ve got a blockchain that’s fast enough and tailor-made for financial markets,” he added.
As this year has seen a clear and pivotal shift of traditional finance seeking to move on the blockchain to solve legacy inefficiencies and adapt to the the times and tech, Solana is fast emerging as backbone infrastructure for this pivot.