Should You Buy Solana In 2022?
Should You Buy Solana In 2022? Read our detailed analysis on Should You Buy or Sell Solana in 2022
Should You Buy Solana In 2022: Some Facts
- Solana is a blockchain platform that supports smart contracts including NFTs.
- It was created as a competitor to the Ethereum blockchain network. Solana was first proposed by Anatoly Yakovenko in November of 2017.
- One of the popular cryptocurrencies based upon the Solana blockchain network is Stepn.
- Solana uses a consensus mechanism between proof-of-stake and proof-of-history.
Should You Buy Solana In 2022: Factors Impacting SOL price
Solana has been one cryptocurrency that has gained massively very fast and at the same time crashed very quickly. Several factors have impacted SOL in the last one year. Here are a few of the factors that played an important role in determining the momentum of Solana:
- Network and Security
Solana network has been very much vulnerable to hacking. The latest hack was the hacking of the Solana wallet which led to the drain of millions of dollars. However, almost all the blockchains have experienced such security breaches but for Solana, the breach is quite regular.
- Geopolitical Events
Geopolitical events not just impacted Solana but the entire crypto market. The latest events like Russia-Ukraine War, Inflation, and rising Tax Rates by US Fed have played a very important role in dragging the price of SOL lower.
- Crude Price
One of the factors impacting the price of Cryptocurrencies is Crude Price. This factor has been missed by almost all the analysts. However, if we compare the price of Crude oil and the price of cryptos, we will be able to have a clear reference. Whenever, the crude price surged, the Crypto market crashed and when the crude price fell, the crypto price surged.
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.
SOL, the native token of Solana hit its all-time high of $260.0 in November 2021. Two years ago that is in May 2020, SOL 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 talk about transactions 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.
One of the projects on the Solana blockchain, STEPN which is a move-to-earn project saw massive growth within a few months of launch.
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.
Summary of Advantages of Investing In Solana
- Solana is the best competitor of Ethereum due to its lightning-fast speed and lower transaction fees.
- Solana can process over 50,000 transactions per second (TPS), whereas Ethereum can just process within a range of 15-45 TPS
- Solana utilizes a Proof-of-History consensus mechanism, an innovative approach that enables quick turnaround times during transactions
- Solana is the third-largest chain in terms of TVL, with a total of $7.9 billion value locked in the ecosystem.
Should You Buy Solana In 2022: Other Reasons to Invest In Solana
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: Conclusion
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.