What is Solana crypto?
SOLANA has attracted attention from crypto investors in recent days to hit a new record high.
We explain what you need to know about the cryptocurrency and how much it's worth.
Before we do, keep in mind that buying cryptocurrencies as well as stocks and shares is a very risky business.
Investing is not a guaranteed way to make money, so make sure you know the risks and can afford to lose the cash.
Cryptocurrencies are highly volatile, so your money can go down as well as up in value in the blink of an eye.
As always, you should only invest in things you understand.
There's also scant regulation for cryptocurrency firms, meaning you won't have any protection if and when things go wrong.
Plus, there's no guarantee that you'll be able to convert crypto assets into cash, as it depends on demand and supply in the market.
What is Solana?
Solana is a challenger to Ethereum as the blockchain of choice for building decentralized applications.
Similar to rivals such as Cardano, the project claims to offer a faster and more efficient alternative.
The idea and initial work of Solana began in 2017, but it didn't officially launch until March 2020.
What is the price of Solana?
The value of Solana is currently sitting at $67.59 – its highest ever price, according to CoinMarketCap.
The price has increased by more than 41% over the past 24 hours.
In comparison, it reached its previous highest ever level of $55.91 on May 18.
On January 1 this year, the value of Soltana was just $1.8421.
Why is the value of Solana going up?
It's difficult to say exactly why the value of Solana has risen recently, but a number of new projects and updates have launched in the past month.
Last week, Mango Markets, a Solana-powered decentralized exchnage, announced a successful $70million crowdfund.
Solana has also benefited from other positive updates, such as the launch of the so-called Wormhole on August 9.
This is a communication protocol between Solana and other decentralized finance projects, including Terra, Ethereum and Binance Smart Chain.
Myron Jobson, personal finance campaigner of Interactive Investor, said: "The tipping point for cryptos more broadly will be if and when they can be used more effectively on a transactional basis.
"In the meantime, the crypto marketplace remains highly volatile and speculative.
"There may be scope to take advantage of price volatility and speculate, but for most investors, the wild price swings are simply too much to stomach.
"As such only invest what you can afford to lose remains the prevailing sentiment."
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