Solana price: cryptocurrency surges past all-time high and rivals ethereum after Web 3.0 announcement

A lesser known crypto has surged to new heights, overtaking its rivals and reaching a new all-time high.

A lesser known cryptocurrency has surged to new heights, taking out the fourth spot on the leaderboard and reaching a new all-time high.

Solana, or SOL, is now the fourth largest cryptocurrency in the world with a market capitalisation of $US74 billion ($A99 billion) at time of writing.

It has skyrocketed by 17 per cent in the past week and on Monday, hit a new all-time high of $US260 ($A350) per coin.

That was down slightly by Tuesday, trading at $US246 ($A331).

The crypto has continued to exceed expectations, first taking over Cardano’s $US66 billion ($A88 billion) market cap earlier this month and then Tether’s $US71.8 billion ($A96 billion) valuation on Sunday, according to CoinMarketCap.

Some think it’s also set to overtake ethereum, the second largest blockchain.

Only three months ago, in August, the crypto was number eight, and it has already halved that gap – showing its recent gains.

The new-found enthusiasm for solana can be attributed to an announcement by its creators on Friday, causing the price to surge.

The investment arm of the blockchain, Solana Ventures, just poured $US100 million ($A134 million) to boost gaming in a partnership with FTX and Lightspeed Venture Partners.

The company plans for the radical move to lead to solana being built into game developments and increasing its usage.

The $US100 million ($A134 million) is headed into the pockets of Web 3.0 gaming studios and tech companies that deal with blockchains and games.

Some are so optimistic that they think solana has ethereum in its sights.

Business Insider said it was “seen as a competitor to ethereum” and Twitter users compared its success to ethereum.

However, others pointed out there was still a huge gap between the two cryptocurrencies, with a $US490 billion ($A660 billion) gap between them.

Solana launched less than two years ago, but is now the world’s fourth largest cryptocurrency.

Solana’s most prominent founder is a former software engineer for Dropbox named Anatoly Yakovenko.

One of his big aims was to differentiate the coin by a proof of history feature, meaning it can record transactions and the time that has passed between them, boosting the trust in the blockchain story.

He helped solana raise $US25 million ($A33 million) in public and private funding rounds back in 2017 to fund the digital coin.