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New digital coin jumps 400%: ‘Solana’s ascent has been meteoric, even by crypto standards’

The platform promises to be faster and cheaper than competitors.

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Solana logo displayed on a phone screen and representation of cryptocurrencies are seen in this illustration photo taken in Krakow, Poland on August 21, 2021.
Jakub Porzycki | NurPhoto | Getty Images

A fresh cryptocurrency called Solana, which has existed for less than two years, hit an all-time high of $210 on Thursday, making it the sixth biggest digital coin in the world. Bitcoin and Etherum are at spots No. 1 and 2, with prices of $47,140 and $3,545, respectively.   

"Solana's ascent has been meteoric, even by crypto standards," Antoni Trenchev, co-founder of digital currency firm Nexo, told CNBC. The coin's makers say it will be faster and cheaper than competitors and support over 1,000 transactions per second, with an average fee of $0.00025. 

Solana raised $314 million of new funding back in June, led by Silicon Valley venture-capital firm Andreessen Horowitz and crypto hedge fund Polychain Capital. The founders will focus on decentralized finance (DeFi) and non-fungible token (NFT) cryptocurrency sectors, which are decentralized apps created by blockchain developers. 

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Solana was last trading at $199, per crypto tracker CoinGecko.com, above other popular brands like XRP and Elon Musk-backed Dogecoin.

As with any cryptocurrency, though, it can be volatile. So if you plan to buy in on any level, get financially prepared first, and understand how the market works.

Invest with "funds you won't need for at least a decade," certified financial planner Erika Safran, a crypto investor and the principal at Safran Wealth Advisors, previously told Grow. "Why? You will either be very rich, or you won't be despondent about your losses."

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