Exception of bitcoin, there is another token which has shown a tremendous bounce back characteristics. I wouldn't just say Solana(SOL) will be in the run but rather 'it will continue to greater heights'. With a record all time high (ath) of $260 dollars in November, 2021 and a market dip to below $10 dollars in 2022 and now trading above the $100 dollar market price, Solana has sent a clear message that it's back and not just to settle for the former glory. You have to give credit to this project. I must say, it has been one of the rare crypto projects that has climbed back from the dungeon, we have seen bitcoin gradually doing so.
Just saw 1000 HBD giveaway contest from @leofinance and I think I should use this opportunity to emphasize on this project.
Looking at Solana networkhttps://files.peakd.com/file/peakd-hive/daniasi/23tbGjDMYf9DsEVYmAFEWTVz3Cq3A9UTDpCX9oWRGcmkUJj33Pt2nhRnhDFrv9Sb5Jrh8.png
There is a need to know what Solana is to understand more and get the needed market potentials. With its scalable, secure and fast network base for decentralization applications, you can't just underestimate this third generation blockchain base platform.
First incepted in 2017 by Anatoly Yakovenko, a former Qualcomm executive. Since this launch, it has grown to be one of the strongest and largest crypto projects in the world. It later went public through its initial coin offering (ico) in April of 2020 starting with a market price of $0.95 dollars with its native token being SOL (Solana token).
Known for its scalability (scaling), Solana network has made a reputable name for itself in crypto and blockchain technology industry. Why do you think it is mostly called 'the ethereum killer', we all know Ethereum network focuses on scaling through multiple layer blockchain. The reverse here is in Solana, aiming to provide a scalable blockchain with just one layer, being able to exceed the performance of many popular blockchain and at the same time keeping the price very low. Solana being open source also gives high support for decentralized applications (dapps) through smart contract, innovation seems not to be missing in this platform.
Solana's Consensus Mechanism
There is a need to understand the technology behind the Solana ecosystem as this will really help shape the potentials and possibilities. As earlier said, speed, scalability and low transaction fee goes a long way, how would you feel if I told you the Solana network can handle close to 65,000 transactions per second (tps), yes you heard me right, in just a single second and still keep the price as cheap as possible.
It has been recorded to have the maximum transaction fee of $0.00025 dollars, Wow! When comparing this with similar chains, you know what such transactions can amount to in fees. So how does it achieve this?. While other big names settle for proof-of-work (pow) or the proof-of-stake (pos) consensus mechanism, the Solana network has gone hybrid, pairing the advantage of the Proof of Work efficiency with Proof-of-history (PoH) generating a more reliable and more faster transaction. The limitation of relying solely on PoS is it not being energy efficient which has given Solana a transaction leap against Ethereum.
We must have by now gotten a glimpse of what PoS is so let's focus on the PoH unique and additive feature of the Solana network. The PoH helps provide a digital record of events that are occurring on the chain at any given time. This idea is backed from using a smaller number yet powerful and speed efficient computers to maintain and store the large amount of data generated. A lot have seen the PoH protocol as cryptographic clocking as it assigns a timestamp to each transaction in the network. Merging PoS with PoH in the Solana network has been a consensus mechanism technique that has yielded positive results, mitigating lots of inconveniences in the chain.
Solana from the Dungeonhttps://files.peakd.com/file/peakd-hive/daniasi/23u6YrXjr5TGzb1N6nb8sxMuJbbbPBpEJQo74rJLY69oqLBVcnVCsSz2fw43DGFTff5nL.pnghttps://files.peakd.com/file/peakd-hive/daniasi/23tmmf8RGam97agaZXM5FnG4x7WXCfhZCHSiTifnK7pybWadtPFCZ7n4ngA1ybHFUpQvm.png
Screenshots ftom source
As we speak, Solana has generated an over 490% market rise within the last twelve months currently trading at the above $130 dollars. As bitcoin faced its dark days, so also did the Solana network. According to market chart from coingecko, we saw Solana dip to the below $10 dollars price mark sitting at $9.77 as of December 29, 2022 from an all time high of nearly $260 dollars is November 7, 2021.The volatility of cryptocurrency should not be undermined I guess, it was an all house event, all the cryptoverse was involved.
The bear market remains a story we wish to forget anytime soon but it's always part of the market, helping to sieve out the brave. Solana declined by 90% in the 2022 bear market after the all-time high of 2021. One major cause of the dip was the FTX market crash which Solana had a huge part of the project. How do you withstand a 50% decline overnight after the FTX insurgence as we saw in the chart above, it lost its confidence trading below $10 dollars on the later days.
Solana proved it is a no back down project, I personally will not attribute this bounce back to luck or gradual market movement but rather a workaholic team that have worked resiliently to improve the network. We have seen Solana recently taking on formidable projects and giving out results. We have seen the decentralized finance (defi) bouncing back, the total value locked (tvl) in solana network is surging. In short, it has just surpassed the $2 billion dollar mark which onced happened during its early market bull. The thing to note here is that it is yet to reach its former TVL lock of over $10 billion that occurred in November 2021. The TVL declined during the market dip to $210 million dollars in January 2023. As of October 2023, Solana's defi TVL rose to over $330 million dollars, when looking and the gap closed within this range till date, you should know a lot is going on within the Solana network.
Is Solana a good buy from here?
Screenshot from source
From the lots of innovations and projects that are presently stirring the Solana network, It's better I shift the question from will Solana rise? especially during this bull run to 'why shouldn't it rise? Especially during this bull run adding to the current increase in their platform stability. Investors' confidence has grown for this chain and being open source it has stirred innovations on developers. The foundation has been laid within the past 12 months, try to notice the volume changes in decentralized exchange (dex), stablecoin and non fungible token (nft) trading on Solana network is outpacing lots of rivals, even Ethereum network will have to step up their game.
The secret for a market surge will be the high throughput and low fees. The issue of transaction fees has been a center talk and as crptocurrencies start to appreciate in price we all know what this will mean. Developers will and investors will have to take advantage of low fees to generate high returns. We have seen lots of airdrops happening within the Solana network that keeps drawing in new users to the chain. Solana currently ranks 5th in crypto ranking according to coinmarketcap with a market cap of over $57 billion.
To conclude, let me add, Solana has all the bullish characteristics in store for the next bull run. To hit it's former glory is one of the advantages to leverage here in the Solana network. With innovation not ceasing in this chain, scalability, speed and low fees through its hybrid protocol (PoS and PoH) will send this project to new all time highs. Nevertheless as an investor, always do well to make your extra research, I see potential in the Solana network.
Posted Using InLeo Alpha
Posted Using InLeo Alpha
