Solana (SOL) season is here: 5 reasons you should pay attention to SOL, according to analyst Lark Davis

Top crypto strategist Lark Davis unveils the rational behind Solana (SOL) recent price pump and discusses whether this altcoin still have upside potential or not.

According to the trader, Solana is the newest in a long line of Ethereum competitors gunning for market share. Solana is fully functional and can do 65,000 TPS for “dirt cheap fees”, meanwhile, “ethereum does 15 TPS for eye watering fees.”

Davis notes that Solana also has a token burning mechanism which burns a percent of the transaction fees. This is good for long term tokenomics. Yet, Solana low fees does not account for its recent price spike because there are lots of chains that are cheap to use. Davis points out that Solana is offering more than that.

Firstly, builders are showing up on Solana. There are now dozens of applications built on Solana that traders can use today such as Port Finance, Mercurial Fi, Raydium Protocol, and Audius Project.

Secondly, Solana is tapping on the NFT space. Although many critics saying that Solana NFTs are just copy paste versions of Ethereum NFTs, there is a growing NFT scene within the ecosystem and every NFT purchase requires Solana.

Thirdly, the project raised 314 million in June to pump up DeFi on Solana. They also has strong backing from FTX which is the 3rd biggest spot and 2nd biggest derivatives exchange.

“This kind of money can make almost anything into a reality,” the trader says.

Besides, institutional money is also starting to take a big interest in Solana. Osprey announced a SOL fund 2 weeks ago. And they are far from the only big money players piling into SOL.

And lastly, Davis highlights that Solana users are showing up. Solana has risen to be #4 by TVL in DeFi. Although it is still 125 billion behind Ethereum, it is rising fast.

“There is a big market for users who want yield without $50 fees.”

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