What height can Solana reach?

Have you decided you want to take action? You can buy Solana on eToro.

Solana is a Layer 1 blockchain project designed to ensure speed and productivity, while maintaining decentralization and enabling cost-effective transactions – these features make Solana ideal for high-throughput functions on the blockchain, such as music streaming, gaming and high-frequency trading. Several decentralized applications have already been built on Solana, including decentralized exchanges (DEXs) and lending platforms.

By early 2021, Solana’s price had risen from a few dollars, and many early investors recorded huge gains; However, the first few months of this year were somewhat disappointing. Given that Solana has fallen sharply from its all-time high, is there still room for potential future profits? Let’s see how far Solana can go.

What is Solana?

Dubbed an “Ethereum killer,” Solana competes with other smart contract blockchains such as Ethereum, Binance Smart Chain, and Avalanche. In essence, smart contracts are pieces of code that are uploaded to the blockchain to create decentralized applications (DApps), which can then be used by investors for a wide variety of purposes. Currently, the main categories of DApps built on these networks relate to token exchanges and lending platforms, but developments are also rapidly taking place in gaming, in metaverse protocols, and in insurance.

Solana is a blockchain project that uses a new concept called Proof of Date: Proof of Date encodes timestamps in the blockchain, allowing for faster transaction times, high throughput and lower transaction costs. The project is led by Anatoly Yakovenko and Raj Gokal, who are leading Solana in this period of rapid growth.

Solana’s market value

As of March 2022, Solana was the eighth largest cryptocurrency in the world, with a market capitalization of over $35 billion; The coin is currently down from all-time highs, but was still trading around $100 at press time. In terms of growth potential, market capitalization is the most important indicator to look for. The largest Solana digital currencies on the market are Tether, Ethereum, and Bitcoin, in that order.

While Solana has a large market cap compared to most other cryptocurrencies, this represents only 9% of the market cap of Ethereum. This element may indicate that Solana has room to grow, but Ethereum has a lot more adoption and use cases than Solana; For Solana to reach the market cap of Ethereum, it will need to grow its user base, on-chain applications, and the amount of liquidity on its network. These are not easy tasks.

rising state

Solana still has significant growth potential, assuming that the overall bull market structure remains intact. Solana currently hosts a variety of DeFi applications, NFT projects, and Web3 applications, while some competing blockchains such as Cardano have yet to implement smart contracts. If digital asset prices continue to rise, it would not be unreasonable to see Solana continue to grow, given that the project has an active developer base and its growth in 2021 has exceeded investor expectations; At current valuations, SOL would need to trade around $350 per token to reach a market capitalization of $100 billion.

drop condition

Over the years, many projects have attempted to steal a large portion of the market share from Ethereum and very few have experienced long periods of success; Doing business with a well-established giant like ETH requires exceptional product market adaptability and almost confidence in the support of its community. Although Solana has consistently outperformed throughout 2021, things have been different since the beginning of this year. Taking profit in times of market uncertainty has significantly affected the price of the token: in March, Solana fell nearly 60% from its all-time high. Finally, all cryptocurrencies are greatly affected by the surrounding market structure: an extended bear market lasting 2-4 years could push prices towards $20-30, the levels of Solana’s first uptrend.

Where to buy Solana

Investors can easily access Solana within and outside Europe; Among the exchanges that can be purchased, there are FTX US, Binance US, Coinbase Pro, Kucoin, Bybit, and eToro.

How long will it take before Solana hits $500?

Price forecasts are particularly speculative and can only be interpreted as reasonable assumptions; With the current momentum the cryptocurrency market is showing, it would be reasonable to expect a kind of “double bubble,” with the market peaking later this year. There are many different ways to estimate the length of market cycles, but we generally know that they are lengthy, accompanied by diminishing returns. The following chart from Benjamin Cowen estimates the Bitcoin market rally between early and mid-2022: Assuming the prediction is correct, most altcoins, including Solana, will also peak at this time. If Bitcoin can cross $100,000 per coin this year, we will likely see Solana hit $500 in the same period.

Where to store Solana safely

Keeping your cryptocurrencies safe is extremely important due to the inherent irreversible nature of transactions. While it may be convenient to keep your money on the exchange when actively trading, this is not the safest way to protect your capital. Wallets, whether software or hardware, can protect your cryptocurrencies from the risk of hackers attacking an exchange or a compromised account; Wallets allow you to have physical and personal custody of your tokens, giving you exclusive access to your private keys. In the cryptocurrency environment, there is an old saying about self-incubation: “Not your keys, not your coins!”

Best hardware wallet: Ledger

Ledger has extensive experience in providing hardware wallets to cryptocurrency investors. With a user-friendly interface that opens with a PIN code, many investors choose this primary device; In addition, Ledger offers desktop and mobile software that allows you to monitor the value of your assets without sacrificing security.

Best Software Portfolio: Exodus

Exodus is a software wallet, which means that your coins are stored offline using your computer or mobile device. Although software wallets are not as secure as hardware, they are a great option for those who are looking for more security than leaving coins on exchanges. Exodus Solana supports and even provides the ability to share, thus earning passive income on your assets.

Rewards section: The Solana ecosystem is growing rapidly and the low cost of transactions on the network allows building new and innovative protocols on the blockchain; If you are interested in knowing how network projects affect token price growth, click here to monitor all projects within the Solana ecosystem. The more users, total value locked, and applications on the blockchain, the more investors may be willing to invest in the relevant project.

Current Cryptocurrency Prices

Currently, the cryptocurrency market has been in a slow upward trend from the local low at the end of January, with many coins approaching or below important support levels; Although this is an important aspect of their recovery, the latter is relatively weak and from here more drops can be observed. Many investors believe that the crypto market has not yet retested its lower support levels before hitting all-time highs. If so, there is a good chance we will see a few more months of boring sideways moves on most crypto assets.

So is Solana a good investment?

When choosing to invest in cryptocurrencies, there are many aspects to consider, and one thing that is certain is volatility. Buying an asset that has not yet proven its value can be a great opportunity to make money before other investors realize the value of the project. One of Solana’s key advisors is Sam Bankman-Fried, a 29-year-old billionaire who is also the CEO of the FTX Stock Exchange and Alameda Research, a quantitative trading company; With strong partnerships and the ability to become more integrated thanks to strong exchanges like FTX, Solana will likely continue to grow in the future. In general, the modern version of this cryptocurrency ecosystem is still very small, and the potential use cases for Solana are much larger than what is currently being used; If the vision of the “NASDAQ fast blockchain” is to take hold in major US financial institutions, Solana’s bullish potential could be multiple multiples of current prices. Placing focused bets on teams with a strong vision is a strategy that can pay off, and Solana’s team shows no signs of slowing down.

Keep up to date with the latest trading news and ideas following Benzinga Italy on Twitter.

Leave a Comment