Should You Buy Solana In 2022?
Should You Buy Solana In 2022?: YTD Performance
Solana has been struggling due to the 3 main reasons
- Technical issues at the beginning of the year
- Fall in Ethereum Gas Prices
- Increased competition from other Blockchains, BITGERT for example
Macro factors like Ukraine and Rate Hikes have also prevented Solana from rising. Solana had its biggest pump of the year after news of Opensea’s Solana Integration came out in the public domain.
When one compares Solana with other Layer-1 blockchains and compares performance in the last 1 month, we can see that newcomer Bitgert is on the top. Big Market Cap Cryptocurrencies like Binance and Ethereum are next. The 3rd lot consists of the rest including Solana and Cardano.
What we have seen in the past is that these groups of cryptocurrencies rarely move higher (in the same degree) at the same time. For example, over the last 24 hours, Cardano and Solana are down much more than Ethereum.
Should You Buy Solana In 2022?: Solana Technical Analysis
Read: Solana Price Prediction
Should You Buy Solana In 2022?: 3 Reasons to Buy Solana:
- Highly Rated Project
Solana since its launch has proved to be one of the best currencies in terms of ROI (Return on Investment). If an investment was made in Solana at the time of launch, the would have gained 64753.4% in profit as of today.
Solana hit its all-time high of $260.0 in November 2021. Two years ago that is in May 2020, Solana was trading at just over $0.50. Since then Solana has traveled a long path. The scalability and speed of Solana have been better than Ethereum. If you transaction per second, the Solana is capable of doing 50000 transactions per second while Ethereum struggles between 30-50 transactions per second.
Solana hit its all-time high of $260.0 in November 2021. Two years ago that is in May 2020, Solana was trading just over $0.50. Since then Solana has traveled a long path. The scalability and speed of Solana have been better than Ethereum. If you transaction per second, the Solana is capable of doing 50000 transactions per second while Ethereum struggles between 30-50 transactions per second.
2. Quick Adoption of Technology
The Solana infrastructure is highly advanced. It houses several projects cutting across dApps, DEXs, DeFi platforms, and automated market makers (AMMs). The latest advancement of Solana has been diving into NFTs (non-fungible tokens) through its NFT marketplace, Solonart. With this latest venture, the NFT investors can now easily buy and sell NFTs through the Solana marketplace.
Apart from this, Solana has over 400 dApps projects on its network which includes Serum, Audius, Raydium, Open Ocean, Defi Land and others.
3. Less Environmental Impact
Unlike the cryptos like Bitcoin and Ethereum, Solana is a highly eco-friendly project. On Solana, there is no need for energy-intensive mining, meaning the network is extremely environmentally efficient. Added to it, Solana which is dubbed as Ethereum Killer has developed a bridge that allows the transfer of assets from Ethereum to Solana easily. This helps reduce the use of Ethereum and thereby helps in creating a more eco-friendly environment.
Should You Buy Solana In 2022: Other Reasons
1. Underperformance versus some leading blockchains, it is inevitable that investors will increase Solana in their portfolio.
2. Outstanding ecosystem which is focused on applications for Solana
3. It performs well on many metrics, for example, blockchain speeds
4. Ever developing eco-system.
Should You Buy Solana In 2022? Coclusion
Looking at the data, it is clear Solana is a quality investment for the long run. However, there may be a high degree of volatility over the next few weeks due to the Fed rate hikes. Secondly, even if things settle, it is likely that leading coins like BTC, ETH and maybe even LUNA will take off earlier. Thirdly, Solana is significantly lower than its ATH which means that unless Global economies crash, the downside is quite limited. In sum, Solana may be a good investment in the long run but is likely to be highly volatile and may underperform its peers at least for now.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in Stocks or Coins. Please consult a registered investment advisor to guide you on your financial decisions.