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Solana is a Layer 1 Blockchain project that was designed to provide speed and performance, all while maintaining decentralization and enabling economic transactions. These attributes make Solana ideal for high-performance functions on the blockchain, such as music streaming , gaming, and high-frequency trading . Many decentralized applications have already been built in Solana, including decentralized exchanges (DEX) and lending platforms.
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Solana’s price soared from a few dollars in early 2021, and many early investors experienced huge gains. However, the first few months of 2022 have been quite disappointing. Considering solana is down significantly from its all-time high, is there still room for future gains? Let’s take a look at how high Solana (SOL) can go.What is Solana?
Dubbed “Ethereum killer,” Solana competes with other smart contract blockchains such as Ethereum, Binance Smart Chain, and Avalanche. Essentially, smart contracts are codes that are loaded onto a blockchain to create decentralized applications (DApps) that investors can use for a variety of purposes. Right now, the largest categories of DApps being built on these networksinvolve token exchanges and lending platforms, but rapid developments are being made in gaming, metaverse, and secure protocols.
Solana is a blockchain project that uses a novel concept called “Proof of History” (PoH). PoH encodes timestamps on the blockchain, enabling faster operating times, high throughput, and low transaction costs. The project is led by Anatoly Yakovenko and Raj Gokal, who lead it during this period of rapid growth.
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How to do it? Follow recommendations from professional traders and start trading. Solana Market Capitalization
In March 2022, Solana was positioned as the eighth largest cryptocurrency, with a market capitalization of more than 35,000 million dollars. The tokenis currently below its all-time highs, but is still trading at around $100, according to the latest revision. In terms of growth potential, market capitalization is the most important metric to pay attention to. The coins with larger market capitalizations than Solana are USDT, ETH, and BTC in that order.
While Solana has a large market cap compared to most other cryptocurrencies, it accounts for only 9% of Ethereum’s market cap. This may suggest that Solana has room to grow, but Ethereum has many more adoption and use cases than Solana. For the latter to reach Ethereum’s market capitalization, it will need to increase its user base, on-chain applications, and the amount of liquidity in its network; these are not easy tasks. Bullish outlook for Solana
Solana still has a lot of growth potential, assuming the overall structure of the bull market remains intact. Solana currently hosts a variety of Defi applications, NFT projects, and Web3 applications, while some competitors such as ADA have yet to implement smart contracts. If digital asset prices continue to appreciate, it wouldn’t be far-fetched to see Solana continue to grow. It has an active developer base and its growth during 2021 far exceeded investors’ expectations. At current valuations, SOL would need to trade at around $350 per token for its market capitalization to reach $100 billion. Bearish perspective for Solana
Many projects have attempted to steal a significant portion of Ethereum’s market share over the years, and very few have had long periods of success. Taking on an established giant like ETH requires exceptional product adaptation to the market and cult support from the surrounding community. Although Solana has had consistent outperformance throughout 2021, the opposite has been true so far in 2022. Profit-taking in times of market uncertainty has weighed heavily on the price of thetoken. By March 2022, Solana was down nearly 60% from its all-time high. Finally, all cryptocurrencies are greatly affected by the structure of the surrounding market. A prolonged bear market of 2 to 4 years could cause prices to fall to the levels of the first bull run of $20 to $30. Where to buy Solana
Solana is widely available to investors inside and outside the United States. Exchanges where it can be purchased include FTX US, Binance US, Coinbase Pro, Kucoin, Bybit and many more.
Price predictions are especially speculative and can only be interpreted as informed guesses. With the current momentum that the cryptocurrency market has, it would be reasonable to expect a kind of “double bubble”, with a market cap sometime in 2022. There are many different ways to estimate the length of market cycles, but we typically know that these cycles are lengthening with diminishing returns. A chart by Benjamin Cowen below estimates that Bitcoin will reach a market cap somewhere between early and mid-2022 Assuming this is correct, most altcoins, including Solana, would also peak at this time. If Bitcoin can surpass $100,000 per coin in 2022, we can likely see a $500 Solana at the same time. Where to store Solana safely
Storing your cryptocurrencies securely is extremely important due to the inherent nature of irreversible transactions. Although it may be convenient to store your money on an exchange when you actively trade, it is not the safest route to protect your capital. Wallets, both software and hardware, can protect your cryptocurrencies from the risk of hacking suffered by exchangesor a compromised account. They do this by giving you physical and personal custody of yourtokens by allowing you exclusive access to your private keys. A big saying in the crypto world regarding self-custody is that if “they’re not your keys, they’re not your coins.” Best Hardware Wallet: Ledger
Ledger has extensive track record in providing hardware wallets for cryptocurrency investors. With an easy-to-use interface that is unlocked with a PIN code, many investors choose this basic device. In addition, Ledger offers desktop and mobile programs that allow you to track the value of your assets without sacrificing security. Best Software Wallet: Exodus
Exodus is a software wallet, which means your coins are stored offline using your computer or mobile device. Although they are not as secure as hardware wallets, they are a great option for those looking for more security than leaving coins on exchanges. The Exodus wallet supports Solana and even offers staking to earn passive income on your assets.
Additional section: Solana’s ecosystem is growing rapidly, and the low cost of transactions on the network allows new and innovative protocols to be built on top of the blockchain. If you’re interested in how network projects can affect token price growth, be sure to check out all the projects within the Solana ecosystem here. The more users, total value locked (TVL) and applications on a blockchain, the more investors will be eager to invest in the underlying project. Current cryptocurrency prices