Solana, one of Ethereum’s biggest competitors, may have taken a big step towards becoming the blockchain of choice for decentralized applications such as DeFi and NFTs, if the $450 million investment round claims are true. The Solana official did not confirm these claims, but there was no definitive denial about the allegations either:
“This information was not disseminated by our team, we asked for this news to be corrected, but our request was denied. As this information has not been officially shared by Solana, we will not be able to make additional comments on this matter.”
Solana Planned A Much Smaller Investment Round
Solana had planned a small investment round in March, but expanded its plans in the face of increasing demand as Bitcoin broke its all-time high price record at $64,671.
SOL hosts many decentralized products such as Serum. Serum stands out as a decentralized exchange that was founded by billionaire FTX founder Sam Bankman-Fried and has exceeded $4 billion in trading volume since its establishment in August. Also on Solana is Solible, an NFT marketplace, and Atomic, a non-custodial cryptocurrency wallet app. Investment tour claims were spread over the Decrypt platform.
The money raised will be used for the development of the Solana Blockchain
According to the report, the money raised will be used to further develop the blockchain and gain a larger market share. Also , a certain amount of this money can be used as an incentive for developers to develop applications on Solana instead of competing blockchains, such a step could be significant for a startup blockchain. In May, Solana collaborated with MATH Global and donated $20 million to support projects on the network. In addition, $60 million was raised to support start-up projects in Brazil, Russia, India and Ukraine. In June, Solana partnered with ROK Capital to launch another $20 million fund for expansion plans in South Korea.
Network congestion has been strained by high transaction fees, and Ethereum has had a hard time meeting the demand for DeFi products, most of which are built on the Ethereum blockchain. Ethereum transaction fees hit a record $70.8 in May. According to the data, Solana is capable of processing over 1,000 transactions per second, while for Ethereum this amount is only around 14.