Solana Hits an All-time High

According to FTX and TradingView, Solana, backed by cryptocurrency founder Sam Bankman-Fried, hit a record high of $69 on Monday.

Despite the security risks, the price of tokens, built for the Decentralized Finance (DeFi) sector and representing two projects. It shows that investors are confident in the industry, especially in the 1st tier protocols.

At the same time, according to Mesar data, Terra ($LUNA), the sign of Terra, an algorithmic balancing system that helps stable coins maintain their dependence on currencies such as the US dollar, rises to an all-time high of $22.22 on Monday.

According to analysts, the growth of Solana and Terra reflects the growing demand of the market.

As Denis Vinokourov mentioned, head of research at Synergia Capital, the need for a large-scale network is on the rise right now.

The reason for Wormhole’s main network crash was that the system became particularly vulnerable to attacks. This is because, under the new protocol, digital tokens can be transferred to many blockchains. Poly Network was attacked Last week with losses worth more than $600 million.

The agitation around Wormhole shows that traders and investors are confident in the chain protocols, which reduces their security risk.

At the same time, the increase in LUNA prices became attributed to the upgrade of the Columbus-5 network. That will begin in the next few weeks.

Opinions and the State of the Crypto Sector

According to Justin Barlow, a research analyst at The Tie, after the upgrade of Columbus-5, “many Terra” apps will also be released. The audience will see a massive stream of new projects.

Barlow added that Terra stakes would get airdrops of the token for their staking efforts as each project goes live.

CoinDesk says LUNA is part of an algorithmic balancing system that helps Terra stable coins maintain their ride. For example, when TerraUSD (UST) trades above $1, users can send $1 worth of LUNA into the system and receive $1 in return.

One of the main distinguishing features of Solana in the blockchain is that the mechanism of the history of adding new transactions shows that a particular event occurred at a specific time. This feature guarantees safety and more speed.

Solana Labs, the technology company that created the network, completed a $314.15 million private equity sale in June led by Polychain Capital and Andreessen Horowitz. This was one of the biggest funding rounds in the industry.

The data show that Solana’s decentralized financial ecosystem is growing at an accelerated pace. The value of all tokens provided by Solana-based decentralized financial programs totals $2 billion.