The price of Solana (SOL) increased by 3%, reaching $211 amidst a predominantly stagnant market. This is tied to the Alpenglow update, which generated heightened interest in the altcoin.
How Will Alpenglow Improve Performance?
The Alpenglow update, developed by Anza, proposes a transition from the existing Proof of History with Tower BFT to a more efficient system. Community members are actively voting on this update, which aims to significantly reduce block validation times from 12.8 seconds to 150 milliseconds. This is expected to help SOL climb back above $200. The update requires a two-thirds majority vote for approval, currently seeing 9.87% participation, with 9.76% in favor.
What Fuels the Altcoin’s Growing Popularity?
The anticipated speed improvements present new opportunities in areas like gaming, social platforms, and real-time financial applications. Data from Santiment indicates that sentiment towards SOL is at a peak for 11 weeks, with a positive-to-negative comment ratio of 5.8. Additional data from Coinglass shows a 6.78% rise in open interest for Solana futures, now exceeding $13 billion.
Key Insights from the Alpenglow Update
The Alpenglow update showcases Solana's potential to set a new standard for transaction speeds in the cryptocurrency world. Key insights include significant reduction in block validation times to 150 milliseconds, increased trading volume reaching $12.7 billion, growth in open interest for Solana futures by 6.78%, and community concerns about decentralization and previous network disruptions.
The Alpenglow update reinforces Solana's potential as a leading platform in the cryptocurrency space, which may lead to greater adoption and use case development across various sectors.
