The market has officially entered its recovery phase and that is definitely exciting. This includes the world of cryptocurrencies and, more specifically, Solana as well. This article aims to cover the matter of investing in Solana in 2024 and whether or not that could be a good idea. The world of cryptocurrencies is changing and developing rapidly and people at this point know that it is volatile in nature and this article will help you understand what to expect.
What Are The Price Predictions for Solana in 2023?
Let’s begin by stating that the market is witnessing the highest Solana price ever which is already a great sign. To find out more about the future of a certain concept or product, sometimes it is helpful to look at its past. This said, if you take a look at what kind of year Solana had in 2023 you can see that it has been a rather positive year as there have been ups and downs, of course, but as of today the Solana coin price is trading with a year-to-date growth of 536%.
The Solana coin price is expected to boom in the coming month also due to the Bitcoin Halving event expected in April 2024. You can be sure that this event will impact the whole industry from a plurality of points of view. Besides, in the crypto market there are rumors of an altcoin season coming along and because of this many researchers expect the overall value of Solana to grow dramatically in the next future.
The price and possible growth of Solana were debunked in this previous section but this is only useful for people who already know what Solana is and what it does. There are many people out there who still do not know about Solana and the way it works. Because of this, it is beneficial to use a section to give a short and useful explanation of these two topics.
What Is Solana (SOL)?
Solana is a blockchain platform, which was designed with the aim of hosting decentralized and scalable applications. This platform was founded in 2017, and it is defined as an open-source project that is currently run by the Solana Foundation, based in Geneva. The actual blockchain was built somewhere else though, more specifically in the San Francisco area where the Solana labs are situated.
Solana is extremely quick and beneficial when it comes to the number of transactions it can process. Together with that, it also has rather lower transaction fees when compared to other influential crypto such as Ethereum. The crypto-related to the Solana platform is also called Soalana, and it is normally displayed with the SOL name. SOL is the fifth-largest cryptocurrency at the moment.
What Does Solana Do?
The architecture of Solana has the aim of demonstrating a set of software algorithms. This is done to eliminate software as a performance bottleneck in relation to blockchain. This combination enables transactions and their scalability. The three main ideal attributes for a blockchain are satisfied by Solana’s mechanism, as this type of crypto is 1. scalable, 2. secure, and 3. decentralized. This blockchain operates on both PoH and PoS consensus models. PoS enables validators to verify transactions based on the number of coins or tokens they hold. On the other hand, PoH allows for these transactions to be timestamped. This makes them easy to verify.
When compared to a similar crypto, Ethereum, Solana has a number of winnings and losses to consider, as well as common points they can share. For example, both these cryptos operate with smart contracts, and both operate thanks to proof-of-stake consensus mechanisms, with the only difference being that, as mentioned above, Solana opiates with PoH as well.
Speed is an advantage Solana has over Ethereum, as in terms of transaction processing speed and transaction cost, there isn’t even a game. Solana can process up to 50,000 TPS at the average cost of $0.00025 per transaction. Ethereum, on the other hand, can handle less than 15 TPS, and its fees are $1.68 on average.
Is It a Good Idea To Invest in Solana?
Thanks to everything that has been showcased so far it can be safe to say that Solana can be a beneficial investment. Considered by market capitalization, Soalana ranks as the ninth-largest crypto company. Some of its rivals include Bitcoin, Ethereum, Tether and others. Nonetheless, this type of crypto is doing rather well and, more generally, this moment in time should be considered as beneficial for investing in crypto. This article brought a useful overview of Solana and its pros, cons and main characteristics. This can be useful for people to approach this type of crypto and the world of crypto as a whole with an improved knowledge of one of the most influential systems on the market.
