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As I’ve written in earlier articles, Solana has roughly 60 thousand times as low fees as Ethereum.

• So the best thing to do is buy at a price you think is most affordable for you.
• In this short guide, we’ll assess Solana’s native asset SOL as an investment.
• However, being a cryptocurrency and a highly volatile one, we don’t guarantee that you will get your money’s worth when you invest in Solana.
• Many trading platforms and cryptocurrency exchanges are available, such as atomic wallet, Binance, and Coinbase.
• This fact doesn’t imply that Solana’s smart contracts are necessarily any less safe than its competitors’ smart contracts, but it is still something to consider.
• In fact, according to The Motley Fool, Solana might be crypto’s hidden gem, and only a few investors have realized its future potential.

Meanwhile, Solana seems to be way ahead of Cardano in regards to development. However, Cardano has more substantial financial support and a larger market cap. Ethereum looks to use its chain on a larger scale, with a lower emphasis on everyday payments. The chain can potentially use NFTs to verify ownership and smart contracts to automate the buying process. Also, many high-net-worth traders use Ethereum because it’s the most secure blockchain platform.

Conclusion: Yes, Solana Is a Good Investment in 2022

For a little background, according to FX Street, approximately 15% of the active network stake for Solana is housed in the Hetzner Falkenstein data centre in Germany. In March 2021, the company scheduled maintenance downtime between the 2nd and 5th, prompting the Solana team to press network validators to move their nodes during the outage. Some investors are worried that such a high concentration of nodes in one place could hurt the cryptocurrency if a future outage occurs again. The most important thing Solana must do over the next few years is resolve its security issues and prevent downtime. Every time Solana is hacked or fails to work, users lose trust and when that happens people eventually stop using SOL and its price will plummet.

The token started trading at around $0.5, according to data from CoinMarketCap. There wasn’t much action until July 2020, with the price mostly consolidating between $0.5 and $0.8. To better understand how Solana works, you need a refresher of what exactly a consensus is.

TVL is basically the amount of value locked in contracts/applications across all applications on a given chain. It’s also important to know that Solana is early in its development. It seems to “go down” every now and then failing to validate transactions, which the “Solana-people” excuse by saying it still is in Beta. It seems like Solana should be the leading blockchain, not Ethereum. Analyzing the supply mechanics is important for figuring out if Solana is a good investment, or not.

Ultimately, only you can decide whether or not Solana is right for your investment portfolio. Before recently stabilizing, SOL’s fall from early April retraced nearly 50 percent of the prior low to high range from late February. The current rally could lead to short-term targets of $113.36 and ultimately $119.

Is Solana a Good Investment Reddit Users Weigh In | Is Solana crypto worth investing?

However, Ethereum transaction fees can be very expensive and prevent mass use of the chain. Cryptocurrencies became popular in 2020 for many reasons, one of which is to use them as a tool to hedge inflation. Most digital currencies have a hard cap on how many coins will exist in total. The creators began to increase the annual supply of sol tokens by 8%, which means that the inflation rate will be reduced by 15% to 1.5%, and then stop reducing beyond this point. By 2030, Solana will practically be synonymous with NFTs, the metaverse and blockchain technology — the SOL token could become the ‘legal tender’ of the internet. Increasing 2,466% since the beginning of 2022, Solana can hit its highest-ever predicted price of $4,428.57 in 2030.

Solana is still relatively new and complex at work on providing users with a cheaper and faster way to interact with dApps. Solana has had many technical issues over the past two years. The network https://xcritical.com/ had several outages, and it went down for about 17 hours at one point. Analysts at JPMorgan have noted that Ethereum can lose market share to rivals like Solana when it comes to NFTs.

What Will Happen To The Price Of Solana (SOL) In 2022?

Additionally, Solana facilitates data transfer to each blockchain node by breaking it up into smaller packets. This helps Solana resolve bandwidth issues and improve its ability to process transactions faster – this is called the turbine effect. Transactions enter blocks via Solana’s sequential anti-image hashes, which refer to unmodifiable hashes. These hashes are then used as input for the next transaction.

More companies are now using Solana to complete transactions online and enjoy the bliss of fast transactions per second, security and ease of use. It’s hard to tell where this chart is going to go in the long term, but it shows you where the SOL/BTC ratio lies at the moment. If the chart goes up it means that Solana outperforms Bitcoin. If a test of $50-$55 is successful, and SOL finds long-term support in this range, we might get a reversal and begin a new bullish parabolic phase for Solana. Haskell, license analysis tooling in Python, and a reactive web framework in TypeScript.

Who Is Behind Solana?

For every critic who warns Solana to become too hot, another critic will suggest that Solana has the potential to be on par with, if not beyond, Ethereum. Finally, after an increase of 11000% in 2021, it is not surprising that the sun in Solana sinks slightly. Solana has fallen nearly 17% since the beginning of this year and about 45% since its peak in November.

$500 per SOL is expected by 2024 according to our Solana price prediction. Solana will even rally right past it to a high of $840 and close 2024 at $656. Wormhole bridge to Ethereum — connecting the two blockchains means services and tokens can work between them.

In the immediate term, prices are anticipated to remain stable. You should keep SOL coins in a safe location after you’ve purchased them. Most of the exchanges where you may purchase SOL have built-in crypto wallets, and the atomic wallet and the Ledger hardware wallet are two more wallets that support SOL currencies. Solana is interested in DeFi and NFT, which are now the most sought-after services in the crypto market, much as Ethereum.

This is a question that has been on the minds of many cryptocurrency investors lately. With the recent launch of Solana, a new high-performance blockchain protocol, some are wondering if it is worth investing in. It is difficult to say for certain whether or not Solana is a good investment. However, it is important to do your own research before investing in any cryptocurrency. That being said, the Reddit community seems to be fairly split on their opinion of Solana. Some people believe that it is a good investment, while others are more cautious.

However, the chains differ in terms of uses, scalability and verification. It is currently the 9th most popular cryptocurrency in terms of market capitalization. Many believe that DeFi is where a majority of the uses for crypto can be created. However, some blockchains, such as Ethereum, that allow for the use of DeFi protocols have issues with transaction fees and scalability.

If you are considering investing in Solana, be sure to weigh all the pros and cons carefully before making a final decision. Every Solana and NFT holder should know MagicEden, Solanart, and Solsea. These are the largest NFT marketplaces by volumes on the Solana blockchain, and they have low listing and transaction fees. These marketplaces support wallets from Phantom, Solflare, Clover, Ledger, and many others.

What is the process for making a Solana wallet?

I’ll look at the economics of the SOL token, the technology behind Solana and the adoption. Bear market or not, cryptocurrency is here to stay, and the market offers innovations for everyone to tap into. Because Solana is a new DeFi coin it might well boom its price.

Is Solana a Scam or a Real Business?

For instance, you can HODL your Solana tokens for up to 10 years or even 15 years. The most hardcore crypto holders reportedly wait until the underlying asset gains commendable mainstream adoption before selling. Decentralization matters for some purposes, and not so much for others.

Asics Miner is engaged in delivery and marketing of efficient asics miner throughout the territory of the United Kingdom and outside. Solana will likely expand its services into the Metaverse and in-play/earn moves to earn games as the Web 3 evolves. This will be feasible because of the Solana governance framework, which will enable dreamers and developers to contribute their ideas. Inventors who cannot join the Ethereum bandwagon due to the considerably higher cost of the ETH token are attempting to do so using the SOL token. Even though Bitcoin has seen massive price fluctuations over the year, Solana has remained positive. In October of this year , the price of Solana increased by more than 43 percent, and it is now selling at $217.19, up from $25.72 on January 1, 2021.

The Tokenmoics Of Solanas Token – SOL

Ethereum’s first mover advantage means that the network has more projects than Solana. Sol claims to have about 350 projects on its network, including decentralized finance, NFT projects and game applications. As more investors will realize the fast trading and low cost of the cryptocurrency, more new projects may choose sol instead of ETH. Others hope that blockchain can change our way of life, and the whole industry may eventually be worth $100 trillion – 50 times its current value – or more.

The market-wide bull run that started in January 2021 started signing out towards the end of most, and most cryptos lost their value. So, by the start of September, the coin had risen as high as $4.7, then just as quickly, dropped to $2 towards the end of September. There are a total of 507 million SOL tokens, but only What Is Solana (SOL) 301 million have been released into the market. This means that one of these factors has to be sacrificed for the other to thrive. For instance, Bitcoin sacrifices transaction speeds for better security and decentralization. This chart paints a short-term bearish picture, but might indicate a bright long-term future.