Did you panic when the crypto market crashed? Did you ponder if you will ever see your portfolio in green? We have good news for you, as Solana is set to turn things around this year. Here is your opportunity to learn about Solana and brace yourself to see your portfolios in green again. Solana, often called SOL, is the next-generation blockchain platform to revolutionize the crypto world with the Proof-of-History mechanism.
Solana: Key Points
Solana is a next-gen blockchain network iteration developed by Anatoly Yakovenko and Greg Fitzgerald in 2017. It began its trading journey in April 2020 by entering the crypto market as an SOL coin with a price of $0.79 per coin etched to it. It was fast to climb the success ladder, recording a high of $260 by November 2021. Ironically, it had witnessed a sharp decline in price by November 9, touching $18. So, within a few days, it climbed from $18 to $260.
Solana is set to take the crypto world by storm with its innovative Proof of History mechanism. Proof of History is a blockchain protocol that relies on a sequence of computations to verify cryptographic transactions. It provides a way to cryptographically ascertain the passage of time between two events. It is a technique used to ensure the accuracy of historical data and ensure it is not manipulated or tampered with.
Solana is a preferred choice of developers to seek high-traffic solutions due to its fast transaction speed, cost-effectiveness, low latency, and scalability. It is often categorized as one of the fastest blockchains ever, with the ability to process 50,000 transactions per second, making SOL one of the fastest and widespread adopted cryptos. It has also effortlessly taken people a step closer to Decentralised Finance. The top features of Solana put the platform in competition with Visa and Master credit cards as accepted payment methods.
Tether, a stablecoin, launched on Solana. However, SOL remains the native token of the network and is not pegged to Tether. There is still debate over the decentralization aspect of Solana because it is less decentralized than other coins like Bitcoin, Cardano, Ethereum, etc., which is an advantage for a few investors and a drawback for others.
Like Ethereum and Cardano, Solana uses the proof-of-stake consensus, providing more coin access to validators depending on how much they have staked. While the Proof of History consensus increases the network’s speed, the Proof of Stake mechanism helps it run efficiently.
Solana has witnessed a whopping 100% gain at the beginning of 2023, depicting solid potential. It is currently trading at $21.20 per coin. The 30-day price movement suggests a positive trend in Solana’s value. While it is still considerably down from its lifetime high, it has excellent growth potential and investor trust.
Will Solana be worth it in 2023?
Predicting the prices of any crypto coins in this highly volatile and notorious market is relatively tricky and almost impossible. As per recent research and analysis, Solana is expected to experience a rapid increase of nearly 500% in its trading price. This prediction is based on current market cycles, volume changes, and prices. Adding to Solana’s predicted rapid growth in 2023 is efficiency, transaction speed, low cost, and an environmentally friendly approach.
Should You Buy Solana?
Now that we are well-versed with all the good features of the Solana blockchain, such as low transaction fees and a highly efficient and stable network, it has the potential to be an excellent long-term investment. Like the buying rule for the stock market, meaning buys low and sells high. Currently, Solana is available at a relatively good deal, as it is trading close to its lows. Considering that crypto markets are highly volatile and Solana lost roughly 90% of its value within a year, it is a risky bet but worth it.
However, you should only invest in the crypto market after evaluating your risk appetite. This market is not for the faint of heart. Also, as a rule of thumb, never invest more than you can afford to lose, and always aim for long-term investments, as short-term may be more volatile and risky. Hence, if you have the patience and believe in the network, Solana (SOL) may be a good buy.
After the crypto market crash in 2022, Solana is pacing toward regaining stability in 2023. It is considered one of the world’s fastest blockchains with a bright future. As technology advances, the growth of DeFi and NFTs will persist, driving up the demand for the network, as Solana is one of the developer’s favourite blockchain networks. This is irrespective of any change in market share. Despite the massive upswing in 2021, the Solana coin considerably tanked in its value in 2022. It is set to make a comeback in 2023.