Crypto market news site, Nomics, has reported that Arweave’s governance token (AR) is making massive gains in the last 24 hours. It has gained about 67% in the past seven days and now trades for about $24.79.
One possible reason for its positive price action is the increase in the number of non-fungible token (NFT) projects on Ethereum’s main rival – Solana. Arweave’s storage tech supports almost all the NFTs on this chain, such as Degenerate Ape. Arweave’s sharp growth in the last couple of weeks than its steady rise before the last few weeks.
Arweave Transaction Chart. Source: Viewblock
The firm’s creator disclosed they are working on raising the rate limit by almost 3x to accommodate the fast-rising number of users. AR’s price surge indicates its rising demand since users can’t pay for storage without the AR token. He made this disclosure when the degen ape was being launched a few days ago.
Arweave’s Decentralization Of Data Storage
Arweave’s focus is to solve the metadata storage problem in contrast to top tokens and coins like BTC, ETH, and popular decentralized finance (DeFi) tokens. Arweave intends to break the total control of Google and Amazon in the data storage space.
It believes that there is a need for data storage service not to be concentrated only among these top tech firms to avoid loss, corruption, or inaccessibility. For example, when amazon’s server becomes temporarily unavailable, no user can access his data or store any data. Thus, such a user becomes incapacitated at that moment, leading to a loss in time, money, or both.
When the NFT niche has been booming in recent times, Arweave’s service has become increasingly important. The reason is that there must be a storage for the metadata of any minted NFT regardless of the NFT’s niche.
An NFT metadata can be the NFT’s basic code or its original content. Most NFT owners use a centralized server to store their NFT metadata. Consequently, if there is any problem with this centralized server, such servers become almost valueless, even for a temporary period.
This is one major challenge Arweave, and similar firms like Filecoin and IPFS want to solve. A side benefit of using Arweave is that metadata stored on it is not liable to loss, corruption, or inaccessibility.
Solana DeFi Now Has Over $2B Inflows
Data from crypto analytics firm, DeFi Llama, reveals that the total value locked on the Solana chain is now over $2B. This value is usually the amount of DeFi virtual assets on the Solana chain. Digital asset owners use DeFi protocols to settle several payments and automate the process through smart contracts and not a third party.
Despite stiff competition from polygon blockchain, Solana continues to make inroads into several other aspects of the cryptocurrency space. It has already achieved what Ethereum plans to accomplish with its Ethereum scaling solution (ETH 2.0). The huge volume of sales experienced by the degenerate ape during its launch recently enhanced the popularity of the Solana blockchain and its token – SOL.
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