Grayscale Investments, the largest cryptocurrency fund in the world, announced on Nov 30th the addition of SOL to its product line: The Grayscale Solana Trust.
Grayscale's Solana Trust enables high-net-worth and institutional investors to gain indirect exposure to one of the highest performing cryptocurrencies of 2021.
SOL has seen explosive growth in 2021. Starting the year with a market cap of roughly CA$96M and reaching the top three in market-cap with a high of $96B in early November; a 1000x increase.
The growth of Solana over the year prompted Grayscale to add Solana to its portfolio. The incredible growth for the layer-1 blockchain can be attributed to ticking all the boxes for a robust and scalable blockchain network. Solana boasts a high transaction per second (65k TPS), minimal transaction fees (<$0.01), and almost instant transaction finality (0.4s).
In comparison, the leading smart-contract network Ethereum, has been reported to handle less than 30TPS with its current proof-of-work blockchain, huge transaction costs depending on congestion (>$10-$1000) with greater than 5 minutes for transaction finality.
With no specific launch-date set for Ethereum 2.0 (sometime in 2022), and the souring sentiment for transaction fees equates to an increased appetite for layer-1 competitors like Solana.
Solana's expanding ecosystem has seen an increase in projects ranging from decentralized finance, NFTs, gaming, and other Web3.0 dApps. Grayscale's Solana Trust will allow institutional investors to gain indirect exposure as the top Ethereum contender.
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