What's driving the crypto market this week? Get fast, clear updates on the top coins, market trends, and regulation news.
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Welcome to Tap’s weekly crypto market recap.
Here are the biggest stories from last week (26 May - 2 June).
📉Bitcoin Dips Below $104K as Markets Cool, But Ethereum Shows Promise
Bitcoin (BTC) experienced a dip below $104,000 over the weekend, reaching a low of approximately $103,832 before recovering. Despite this decline, BTC has maintained its position above the psychologically significant $100,000 level for over 20 consecutive days. As of June 2, 2025, BTC is trading around $105,371.
Most major cryptocurrencies mirrored Bitcoin's decline. Solana (SOL) and Avalanche (AVAX) experienced notable fluctuations over the past week. As of June 2, 2025, SOL is trading at approximately $155.55, and AVAX at $20.71.
Ethereum (ETH) faced increased selling pressure, possibly from large holders, causing brief dips below the $2,500 threshold. However, ETH quickly rebounded, trading between $2,484 and $2,542 over the weekend. As of June 2, 2025, ETH is priced at approximately $2,507.
Analysts remain optimistic about Ethereum's prospects. Arthur Aziz, founder of B2 Ventures, noted that ETH appears to be forming a bullish ascending triangle pattern, suggesting the cryptocurrency is "coiling for a breakout" toward $3,000. However, he cautions that excessive leverage could trigger sharp declines below key support levels around $2,450–$2,550.
Overall, Bitcoin recovered relatively well this weekend, and Ethereum's resilience and positive technical indicators suggest potential for upward movement in the near term.
💰Crypto Investment Products Hit New Records with $3.3B Weekly Surge
Cryptocurrency investment funds are having their best year ever, pulling in $3.3 billion last week alone and pushing 2025's total to a record-breaking $10.8 billion.
The massive inflows drove total assets under management in crypto ETPs to an all-time high of $187.5 billion, according to CoinShares data. Bitcoin dominated the action, accounting for $2.5 billion of last week's investments as the cryptocurrency climbed above $110,000 for the first time.
Ethereum funds also performed well, adding $1.2 billion in their fifth consecutive week of gains following a successful network upgrade earlier this month. However, XRP bucked the trend, suffering its largest-ever weekly outflow of $37.2 million after an impressive 80-week winning streak.
CoinShares researchers attribute the surge to economic uncertainty, with investors seeking diversification amid concerns over US treasury yields and a recent Moody's downgrade. The strong performance has fully recovered the $7 billion in outflows seen during February and March's market correction.
🏛️Congress Takes Another Shot at Crypto Regulation
After years of regulatory confusion, US lawmakers are making a fresh attempt to clarify who's in charge of overseeing cryptocurrency. Representative French Hill introduced the "Digital Asset Market Clarity Act of 2025" this week, with bipartisan support including three Democratic co-sponsors.
The bill tackles the biggest headache in crypto regulation: which federal agency handles what. Currently, the SEC and CFTC often clash over jurisdiction, leaving companies uncertain about which rules to follow. The CLARITY Act aims to draw clearer lines between their responsibilities.
Key provisions include new requirements for crypto developers to fully disclose how their projects work, who owns them, and how they're structured. Companies dealing directly with customers (like brokers and exchanges) would face stricter rules around transparency and protecting customer funds.
Whether this latest attempt succeeds where others have failed remains to be seen, but it signals continued momentum toward comprehensive crypto regulation.
🕵️♂️ Second Person Arrested in NYC Bitcoin Kidnapping Case
In a case that reads like a harrowing thriller, police have arrested a second suspect in a shocking Bitcoin theft case that unfolded in Manhattan last week. William Duplessie, 33, turned himself in after another suspect had already been caught.
The victim, an Italian man named Michael Valentino Teofrasto Carturan, was held prisoner for almost three weeks in a $75,000-a-month New York townhouse. His captors wanted the password to his Bitcoin wallet, which contained millions of dollars worth of cryptocurrency.
It is alleged that Carturan and one of the suspects, John Woeltz, used to work together at a crypto investment company but had a falling out over money. Woeltz convinced Carturan to return to New York, where he was then kidnapped and tortured until he escaped and found help from a traffic officer.
This case is part of a growing problem called "wrench attacks", where criminals use physical violence to steal people's cryptocurrency instead of trying to hack their computers. Similar attacks have been happening around the world, especially in France.
Stay tuned for next week’s instalment, delivered on Mondays.
NEWS AND UPDATES
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The world we are living in is constantly evolving, finding new ways to embrace technology and the impact it can have on our future. From struggling to get a man on the moon to billionaires casually flying up into space, we have come a long way from what was once only dreams.
One thing that has been on peoples' minds for a while is our integration into a more VR-compatible world. If you have seen the movie "Ready Player One" then you know what we are talking about. Although augmented reality and VR is not as inclusive as it could be yet, it offers an escape from our realities via the internet.
Buying a VR headset and visiting Japan would be much cheaper than plane tickets, accommodation, and money for food. This once-off price for VR has provided a new dream for many of us, and there are a few companies taking advantage of this demand in the market.
The Metaverse Explained
Although Metaverse is closely tied to Facebook, now called Meta, the term was first coined in the 1992 novel Snow Crash by author Neal Stephenson. The novel followed a dystopic future where people spend most of their time in a virtual reality metaverse. Why Facebook would base their project on a dystopian novel is a question we can't answer. Facebook isn't even the first company to embrace a "VR universe", we have seen game providers such as Epic Games host VR concerts on their platforms, such as the Travis Scott performance.
We have also seen games like Second Life become increasingly popular as social contact has become limited in past years due to the pandemic, providing a relatively safe virtual world for people to interact. While these platforms have come close, nothing compares to what the Metaverse has in store.
"Meta" relates to the Greek origin for the word beyond, while "Verse" is associated with the word universe, meaning beyond universe. The core concept of this idea is to create a virtual reality world, giving us access to everything in our world and beyond. From buying to selling to gaming, to human interactions, and more. There is no limit to how far the Metaverse can go.
The Metaverse could provide a way for humans to experience more at a reduced price and easier access, whether that be school education or leisure activities. In its basic form, the Metaverse is a way for people to integrate into a virtual world and perform complex interactions.
What To Expect
While Facebook, or Meta, has not definitively laid out their plans for the Metaverse and all the more intricate details, there are some things we can expect. So using some creative freedom, basic expectations, and what has been confirmed, these are 5 things you can expect from the Metaverse:
Virtual reality: The most obvious feature we can expect from the Metaverse is that it will be based in a virtual reality world, or universe, accessible through VR-compatible devices.
Workspaces: Another feature to expect is a workspace, whether it be to motivate people, or board rooms designed for teams to have talks, we are sure the Metaverse is making space for work.
Events: We have already seen other platforms host virtual events, this is surely something we will see popping up in the Metaverse. Expect concerts, conferences, and more.
Games: There has already been some confirmation of VR games entering the Metaverse, we may not be sure what games yet, but it would be a waste not to include a community already interested in VR gaming.
Retail purchasing: The Metaverse is geared up and ready to take on retail, whether that be allowing people to buy things through the Metaverse for delivery, or to use on the Metaverse. We can expect VR clothing and merch to be a big feature.
This is just the basics, we believe, with so much more to still be conceptualized and confirmed. The Metaverse, while exciting, holds more praise in its potential than its progress as of yet. Hopefully we will see more fun additions, maybe some VR Disney Worlds or skiing trips down Mount Everest, who knows?
Things You Might Still Be Wondering About The Metaverse
Now that you know the basics of what a Metaverse is and what to expect from the Facebook Metaverse let delve into some other topics. These are the most frequently asked questions associated with the Metaverse:
Is Metaverse just VR?
Not necessarily, we have seen Metaverse-adjacent projects run their virtual worlds without the use of VR or VR headsets. In short, the Metaverse offered by Facebook is being launched as a Virtual Reality world, but that doesn't mean all will be.
Do you need Occulas for Metaverse?
The device of choice, or choices, has not been announced as of yet. We expect the Facebook Metaverse to offer more than one option point for accessibility.
Is Roblox a Metaverse?
At its core basics, yes, it is a virtual world with a variety of interaction options such as retail, socializing, and gaming.
Who owns the Metaverse?
No one person owns the Metaverse, there are multiple companies working to launch their versions of a Metaverse. There is currently no patent on the term or concept yet, although we may see features patented in the future.
Is Decentraland a Metaverse?
At its core basics, yes, it is a virtual world with a variety of interaction options such as retail, socializing, and gaming.
Why is the Metaverse good?
We have highlighted some points, but let's break them down again. It is generally cheaper for some experiences, it is accessible to the world, it's another way for the world to connect, and it's an advancement of technology. There is more, but these are the main focal points.
In Conclusion
The Metaverse, whether that be Facebooks' version or another, is a very exciting thing. There are so many possibilities, and ways it can better the world. Virtual protests anyone can join, recovery programs or groups, being able to go to your favorite artist's concert without flying thousands of miles, and more.
The possibilities truly are endless, and we are privileged to be able to be a part of the building's progress. A virtual world, or universe, may have some risks associated with it, but we also see plenty of potential for good. The positives and negatives of the Metaverse are going to vary, from platform to platform, depending on what the company has in store.
While the Facebook Metaverse may be the most mainstream at the moment, there are and will be better Metaverses such as the Microsoft one rising soon enough. So stay tuned as the Metaverse is brought to reality.
This leading top 5 cryptocurrency has made waves throughout the crypto industry and remains the top favorite stablecoin on the market. With often times the biggest trading volume in a day, Tether has established itself as an integral part of the crypto industry. Let's unpack more about the digital currency, Tether.
Since the advent of digital internet money, there has been a wide growth in usage as well as outcry over the dangers of using this form of currency. While more traditional investors scorn the volatility associated with cryptocurrency markets, many other communities around the world have for the first time been able to access financial services, only needing an internet connection instead of lengthy bank account applications.
When it comes to the underlying security and transparency that digital currencies can provide, it directly tackles an infringing problem that the traditional currency markets regularly deal with. While many claim Bitcoin, and digital currencies in general, to be "risky" and a bubble, the truth is that the new age payment services have brought a multitude of results to an outdated system.
What Is Tether (USDT)?
Tether (USDT) is a cryptocurrency pegged to the US dollar, otherwise known as a stablecoin. Stablecoins hold the value of the fiat currency or commodity they are pegged to on a one-to-one ratio. Tether is the world's first stablecoin, originally launched for trade in 2014 under the name Realcoin.
While Tether was initially launched on the Omni Layer on the Bitcoin blockchain, it has since become compatible with a number of other blockchains, including Ethereum, TRON, EOS, Algorand, Solana, and the OMG Network.
A stablecoin requires the circulatory supply to be matched by funds stored in a reserve account. Tether uses a combination of commercial paper, deposits, cash, reserve repo notes, and treasury bills to maintain the circulating value. In the past there has been some speculation regarding Tether's backing, however, this has not affected the stablecoin's increasing popularity and buying power.
The core concept of Tether is to provide a digital asset with a stable market price that can harness the power of blockchain technology and the benefits of cryptocurrencies without incurring any of the volatility associated. You can visit the Tether site to gain a more thorough understanding of the intricacies of the coin.
What's The Value Of Tether?
While most cryptocurrencies have a value attached to their specific supply and demand, stablecoins are pegged to a fiat currency or commodity. This means that the value will remain consistent with the value of the fiat currency or commodity it is pegged to, generally this is on a 1:1 ratio.
For the case of Tether, the value will always reflect that of 1 US dollar. While the value remains the same, it is necessary to report that the stablecoin has managed to become one of the most widely traded cryptocurrencies on the market.
Who Created Tether?
As mentioned above Tether was initially called Realcoin when it was launched in 2014 and was created by Bitcoin investor Brock Pierce, entrepreneur Reeve Collins and software developer, Craig Sellars. It later changed its name to USTether, eventually settling on USDT.
All three co-founders have profound experience within the crypto industry, each co-founding and actively involved in several cryptocurrency and blockchain projects.
The business has also created a number of other stablecoins solving the volatility problem across numerous markets, notably a Euro-pegged Tether coin (EURT), a Chinese Yuan-pegged Tether coin (CNHT), and a gold-pegged Tether coin (XAUT).
How Does Tether Work?
Tether does not have a blockchain of its own on which it operates. Instead, it operates as a second-layer token on top of other already establish blockchains, such as Bitcoin, Ethereum, EOS, Tron, Algorand, Bitcoin Cash and OMG.
Tether still functions like any other cryptocurrency, being stored and maintained through wallets specific to the blockchain it is built on. Note that you cannot send USDT built on the Ethereum blockchain to a Tron-based wallet, it must remain on the relevant, same blockchains. The result of this would be lost coins.
The circulating supply of Tether is required to always be backed by the same amount of US dollars held in a reserve account. These reserves can also be made up of other real-world cash equivalents, assets, and receivables from loans.
Providing a stable digital currency in an otherwise relatively volatile market, Tether allows users to make USD trades, both internationally and locally, without any concerns over price movements. It also provides a valuable hedge against markets experiencing sudden or dramatic price dips.
What Is USDT?
USDT is a stablecoin pegged to the US dollar on a 1:1 ratio. Created under the Tether brand, USDT is the most widely used stablecoin on the market today. There is an infinite supply of USDT available, with roughly 72.5 billion in circulation at the time of writing.
USDT provides a safe haven for investors when markets go through major downward price trends, offering a stable price to move the value to without having to liquidate the digital assets to cash.
How Can I Buy USDT?
If you would like to incorporate Tether (USDT) into your crypto portfolio you can do so easily through the Tap mobile trading app. After completing a simple KYC verification, users can gain access to a number of crypto markets and can store the digital assets in our unique, integrated crypto wallets.
The potential for blockchain and cryptocurrencies is vast. With the help of the Tap mobile app, you can manage your crypto portfolio and fiat on-the go while also utilising real world use cases like Tap prepaid card that offers payment access to over 40M+ merchants worldwide.
Stocks are essentially shares in a company that the company sells to shareholders in order to raise money. Shareholders are then entitled to dividends if the company succeeds, and might also receive voting rights when the company makes big decisions (depending on the company).
What are stocks?
Stocks play an important role in the global economy, assisting both companies (in raising capital) and individuals (in potentially earning returns). Traders can buy and sell stocks through stock trades facilitated by various stock exchanges. The stock price is determined by supply and demand, largely influenced by the company's success and media representation.
These "units of ownership" are sold through exchanges, like Nasdaq or the London Stock Exchange, under the guidance of regulatory bodies, such as the Securities and Exchange Commission (SEC) in the United States. These regulatory bodies set specific regulations on how companies can distribute and manage their stocks.
What are the different types of stocks?
There are two types of stocks, common stocks and preferred stocks, as outlined below.
Common Stock
Shareholders of common stock typically have voting rights, where each shareholder has one vote per share. This might grant them access to attending annual general meetings and being able to vote on corporate issues like electing people to the board, stock splits, or general company strategy.
Preferred Stock
For investors more interested in stability and receiving regular payments rather than voting on corporate issues, preferred stocks are often the security of choice. Preferred stock are shares that provide dividends but without the voting rights. Like bonds, there are a number of features that make them attractive investments. For example, many companies include clauses allowing them to repurchase shares at an agreed-upon price.
Stock vs bond
Although both stocks and bonds signify an investment, they vary in how they operate. With bonds, you're essentially lending money to the government or a company and collecting interest as a return while with stocks you're buying part-ownership of a company. Another key difference is that bondholders usually have more protection than stockholders do.
In contrast to stocks, bonds are not normally traded on an exchange, but rather over the counter (the investor has to deal straight with the issuing company, government, or other entity).
Stocks vs futures and options
Futures and Options contrast stocks in that they are derivatives; their value is reliant on other assets like commodities, shares, currencies, and so on. They are contracts established off the volatility of underlying assets instead of ownership of the asset itself.
Stocks vs cryptocurrencies
While stocks provide a unit of ownership in a company, cryptocurrencies are digital assets that operate on their own network. Cryptocurrencies are decentralised, meaning that no one entity is in charge, while stocks are shares in companies that are heavily centralised and held accountable for their price movements. Both the stock price and the price of cryptocurrencies are determined by supply and demand.
Another key difference is that stocks are regulated while, at present, cryptocurrencies are not.
Where did stock trading originate?
The first recorded instance of stock-like instruments being used was by the Romans as a way to involve their citizens in public works. Businesses contracted by the state would sell an instrument similar to a share to raise money for different ventures. This method was called 'lease holding.'
The 1600s gave rise to the East India Company (EIC), which is considered by many the first joint-stock company in history. The EIC increased its notoriety by trading various commodities in the Indian Ocean region. Today, we see the limited liability company (LLC) as a watered-down version of the joint-stock company.
How does the stock market work?
The 'stock market’ is an umbrella term that refers to the various exchanges where stocks in public companies are bought, sold, and traded.
The stock market is composed of similar yet different investment opportunities that allow investors to buy and sell stocks, these are called "stock exchanges." The best-known exchanges in the United States are the New York Stock Exchange (NYSE), Nasdaq, Better Alternative Trading System (BATS), and the Chicago Board Options Exchange (CBOE).
Together, these organisations form what we call the U.S. stock market. Other financial instruments like commodities, bonds, derivatives, and currencies are also traded on the stock market.
An example: the New York Stock Exchange
The New York Stock Exchange (NYSE) is the largest equity exchange in the world, and it has a long and rich history. Established in 1792, it was originally known as the "Buttonwood Agreement" between 24 stockbrokers who gathered at 68 Wall Street to sign an agreement that called for the trading of securities in an organised manner.
Since then, the NYSE has become a global leader in financial markets, with more than 2,400 companies listed and nearly $26.2 trillion in market capitalization. The exchange has an average daily trade volume of $123 billion.
Investing in common stock or preferred stock on the NYSE can be done through a broker or online stock trading platform. When trading on the NYSE, investors have access to a wide range of products and services, including stocks, bonds, mutual funds and ETFs (exchange-traded funds).
Investors can also take advantage of the numerous benefits that come with trading on the NYSE, such as access to real-time information and the ability to buy and sell quickly. The trading platform is regulated by the U.S. Securities and Exchange Commission (SEC).
How to navigate stock market volatility
Stock market volatility, characterised by rapid and unpredictable changes in stock prices, is influenced by economic indicators, geopolitical events, and investor sentiment. To manage this volatility, investors can diversify their portfolios, set clear investment goals, and maintain a long-term perspective.
Regular portfolio reviews and seeking guidance from financial advisors can also help when it comes to making informed decisions during volatile periods. Investors who stay informed about market trends and use strategic approaches can navigate market fluctuations more effectively, which better positions them for long-term success in stock investing.
The importance of diversification when investing
Diversification is key when investing, and the stock market is no exception. The "don't put all your eggs in one basket" approach offers benefits like risk reduction and the potential for higher returns. Strategies for diversification include investing across different sectors, industries, and asset classes.
By spreading investments, investors can manage risk effectively, ensuring their portfolio isn't overly exposed to any single asset or market sector. This helps cushion against market downturns and enhances the overall stability of the investment portfolio.
Terminology associated with the stock market
- Broker: A broker is someone who buys and sells assets on behalf of another person, charging a commission for their services.
- Stockholders equity: The value of a company's stock can be better understood by this metric, which is the company's assets remaining after all bills are covered (liabilities).
- Stock splits: Conducting a stock split is one way that companies make their stocks more accessible to investors. Although it won't change the market capitalisation or value of shares, it will increase the number available.
- Short selling: If an investor wants to bet on a stock's price going down, they can take a "short" position. To do this, they must borrow the stock from either a broker or a financial institution.
- Blue-chip stocks: Companies that are large and have a lot of capital typically fall into the blue-chip category. They usually trade on famous stock exchanges, like the NYSE or Nasdaq.
- Pink sheet stocks: 'Penny' or 'pink-sheet' stocks are those that trade below the $5 threshold and are typically OTC (over the counter). These can be high risk.
- Buying on margin: Buying on margin is using borrowed money to buy stocks, bonds, or other investments in the hopes of making big returns and paying off the loan.
- Market order: When placing an order for a trade, the investor needs to pick from several types of orders. A market order is executed at whatever the next price is, which can be risky if there's a big gap between what buyers and sellers are offering.
- Limit order: A limit order is an order to buy or sell a security at a specified price, with a maximum amount decided on before executing the trade.
- Stop order: A stop order, also referred to as a stop-loss order, is an order placed with a broker to buy or sell once the stock reaches a predetermined price.
In conclusion
Shares, or stock, are units of fractional ownership in a company that investors buy to gain capital appreciation and tap into a company's earnings if the company's stock pays dividends. Companies, through listing their stock on an exchange, can raise capital to further develop the business.
Stock is traded on an exchange, and the stock prices are determined by supply and demand.
Used across all markets, the spread is the difference between the buy (offer) and sell (bid) prices of an asset. Spreads provide an additional opportunity to traders to make money through buying and selling assets.
The spread of an asset will depend on the current demand or an asset and the market’s volatility and is presented in either a percentage or value form. Assets with markets displaying higher levels of demand will typically have smaller spreads and usually higher price points.
As an example, when you look at an order book for Bitcoin you will usually see prices reflected in green and red reflecting the offer prices and bid prices. The spread will then be indicated above the most recent trades. As another example, consider foreign exchange counters where the buy and sell prices are different, this difference is known as the spread. Market makers use spreads to generate money from transactions completed at market prices.
Let's put this in context: George buys 100 shares for a £2 ask price in “ABC” a publicly listed company. George pays £200 in return for 100 shares. If he decides to sell the shares back at the same price he bought them for, he would sell the 100 shares for the bid price at £1.95 and would receive £1.95 each instead of £2. This would mean he gets a return of £195 and loses £5, which would be paid to the market maker.
Sitting among the 30 biggest cryptocurrencies by market cap, Stellar is focused on bridging the gap between the business of blockchain and the traditional financial institutions. The platform provides a means for users to send assets and money through the blockchain, utilising a decentralised network of authenticators.
Redefining the financial landscape, Steller presents a digital transformation on the traditional services users have become accustomed to. Merging innovation with a practical application, the network is able to help users around the world, as well as financial industries, achieve a more streamlined service. Let's explore what Stellar is.
What is Stellar (XLM)?
Before we dive into the "what", let's first stipulate that one stellar is known as a lumen and uses the ticker XLM. Stellar launched in July 2014 and soon afterwards changed its strategy to be more focused on integrating blockchain technology into financial institutions.
The concept behind Stellar is to provide a space in which users can transfer everything from traditional crypto and fiat currencies to tokens representing new and existing assets, increasing their transaction performance by using lumens.
Similar to the Ripple XRP network, Stellar is designed to cater to both payment providers and financial institutions, building a bridge between the blockchain and traditional financial sector. Developing on the Ripple concept, Stellar has also positioned itself as an exchange as its ledger has an inbuilt order book that keeps track of all the assets on the network.
Who Created Stellar?
The founders of Stellar are Jed McCaleb and Joyce Kim, both previously employees at Ripple. McCaleb, who founded and was acting CTO of Ripple, and lawyer Joyce Kim, decided to create Stellar after they left the Ripple team in 2013 following a disagreement on the direction that Ripple was taking. McCaleb is also credited with creating the first successful Bitcoin exchange, Mt Gox.
McCaleb described Stellar's aim as giving people a means of moving their fiat into crypto and more seamlessly conducting international payments. The network provides cross border transactions with low transaction fees and fast executions. With leading technology and innovative problem solving, the network has made a healthy impression on both institutions and investors alike.
How Does Stellar Work?
Stellar is a hard fork off of the Ripple network with several similarities in design and functionality, however, the platform set itself apart by building in several key features. The platform is secured through the Stellar Consensus Protocol which revolves around these core business concepts: decentralised control, flexible trust, low latency, and asymptotic security.
The biggest upgrade launch came in 2015 when the platform replaced its consensus mechanism with a concept called federated Byzantine agreement. This required nodes to vote on transactions until quorums are reached. Anyone is able to join the consensus, and there are measures in place to inhibit bad actors operating with ill intent on the network.
The software behind the platform is called Stellar Core and can be altered to adhere to the needs of the operation using it. The nodes making up the network can be created to function as either Watchers, Archivers, Basic Validators or Full Validators. For example, watchers can only submit transactions while Full Validators can vote on which transactions are valid and maintain a ledger of all node activity.
Another element to the network is the Stellar Anchors. These gateways are responsible for accepting deposits of currencies and assets and issuing depictions of these on Stellar.
What Is XLM?
Known as lumens, XLM is the native cryptocurrency to the Stellar platform. XLM acts as an intermediary currency for transactions taking place on the network. With cost-effective experience priorities, every transaction on the Stellar network costs 0.00001 XLM, a fraction of a dollar (at the time of writing).
When the platform launched in 2014, 100 billion lumens were minted, programmed to increase by 1% annually until the total supply reached 105 billion. Five years later the Stellar uses voted to end this process.
That same year, in 2019, the Stellar Development Foundation (a non-profit organisation) reduced its share of XLM in order to regulate the Stellar economy. This brought the total supply down to 50 billion. At the time of writing, roughly 49% of this total supply is in circulation.
Solana is a high-performance blockchain that uses a unique consensus mechanism to achieve high throughput and security. Thanks to its user-friendly nature, the platform is already being used by major companies. As we explore what Solana (SOL) is, we take a look at the project's intentions, successes, and of course why it is often referred to as the leading "Ethereum killer".
Since Bitcoin was created in 2009 an entire crypto ecosystem has emerged, valued at almost $1.2 trillion at the time of writing. While Bitcoin was designed to provide a global payment system to address problems in the traditional financial sector, other platforms like Ethereum and now Solana have been created to facilitate the development of the blockchain industry as a whole through programmable functionalities.
What is Solana (SOL)?
Recognised as being one of the fastest-growing protocols in the DeFi space, Solana offers a platform for developers to build decentralized applications (dapps) and smart contracts, similar to Ethereum. However, what sets Solana apart is its remarkable speed and lower transaction fees.
The project is led by two main entities: the Solana Foundation, a non-profit organization based in Switzerland, focuses on promoting the platform and collaborating with international partners; and Solana Labs, located in San Francisco, takes charge of driving the project's development.
Solana implements a unique approach to support a more environmentally friendly crypto ecosystem. While it utilizes a Proof-of-Stake consensus mechanism to maintain its operations on the platform it also utilises an innovative consensus mechanism called Proof-of-History (PoH), created by one of its founders.
PoH is groundbreaking in the blockchain space, allowing the network to process an impressive 65,000 transactions per second. For context, Ethereum can process 30 transactions a second. PoH is described as being a "timekeeping technique to encode the passage of time within the data structure."
Renowned for being one of the fastest programmable blockchains in the cryptocurrency world, Solana has built a dedicated following. This is evident from the wide range of businesses, from finance to travel, using the platform and the strong interest in SOL tokens, the platform’s native coin.
Key features of Solana
Setting itself apart in the industry and making it a hit among the investor community, Solana offers these key features:
Scalability
The platform is able to handle thousands of transactions per second (TPS), using advanced technologies like parallel processing and mempool-based TPUs for scalability.
Smart contracts
Solana supports smart contracts, allowing developers to create and operate decentralized apps.
Proof of Stake (PoS) consensus
It's unique PoS consensus combines Proof of History (PoH) for speedy transactions, quick validation, and swift block confirmations.
Decentralized finance (DeFi)
Solana's fast, low-cost transactions make it a DeFi favourite, facilitating lending, trading, yield farming, and more.
Who created Solana?
Software engineer, Anatoly Yakovenko, is responsible for creating the Solana platform. He started working on the blockchain project in 2017, three years prior to its launch, alongside his former colleagues, Greg Fitzgerald and Eric Williams. They teamed up with several other former colleagues and together built the programmable network we know today.
Anatoly Yakovenko is also credited with developing the PoH protocol, an innovative contribution to the blockchain space that allows for greater scalability, thereby boosting usability. His expertise has been influential in the industry.
How does Solana differ from Ethereum?
One of the platform's main aims is to improve on several of the Ethereum platform's computing functionalities. Solana stands out by making transactions really fast, while also improving how much the system can handle, scalability, and cost structure. This makes Solana a top choice for efficiency and performance in the world of blockchain.
Scalability
While the project's leads say that Solana will process up to 700,000 transactions per second (TPS) as the network grows, it can currently handle around 65,000 TPS, still a far cry from Ethereum's 30 TPS.
Solana is one of the few layer-one solutions from a computing platform that is able to support thousands of transactions per second without the use of off-chains or second layers.
Cost
Due to the nature of the Solana network, it is able to provide much more cost-effective transactions, generally costing around $0.000125 per transaction. 75% less than that of Ethereum, $0.0005 per transaction at the time of writing.
What is SOL?
SOL is the native cryptocurrency to the Solana platform powering its scalability and reduced cost structure. The cryptocurrency acts as a utility token, used to pay for transactions on the network and to secure the network through staking.
SOL is a proof-of-stake cryptocurrency, which means that it is secured by network participants who stake their SOL tokens. The price of SOL is impacted by conventional factors like project updates, investment market sentiment, exchange activity, and the overall economy, alongside variables such as the token's inflation rate, burning amount, and the expansion of the Solana ecosystem.
How Can I Buy SOL?
If you're looking to diversify your crypto portfolio with the likes of Solana, you’ve come to the right place. Tap allows users to seamlessly buy, sell, trade, and store SOL through the convenience of the Tap app. Using crypto or fiat money, users can tap into this growing market and become part of the Solana-driven blockchain revolution. For more content on how to trade Solana, see here on the Tap website.