Solana is the 4th generation blockchain (Distributed Ledger Technology) and SOL is the cryptocurrency. This network leverages an open infrastructure for providing greater scalability. It introduces many new and unique technologies that help users to enjoy unmatched transaction speeds as well as enterprise-level security. Solana network was introduced in 2017 and since then it has witnessed significant growth.
SOL is the Solana network’s native token. By delegating staking options, users of this versatile cryptocurrency can earn passive rewards. The total supply and circulating supply of SOL is around 494.5 million (494,519,162) crypto coins and 272,637,427.58 SOL currently (early August 2021). No information on max supply is available. Its current 24-hour trading volume is US$383,860,413. Solana SOL price is hovering around US$33.21 and the market capitalization is US$9,053,071,379.
Now that you know the basics of Solana (SOL), let me walk you through the answers to some of the most important questions.
Solana tries to rectify many pain points in the market. That’s why this network’s architecture has been structured in such a way that it becomes expandable and resilient to censorship. The concerns related to transaction settlement speed as well as bandwidth are tackled successfully with this design of trustless and distributed blockchain.
The biggest solved by Solana is the scalability issue. Let me explain it to make it easier to understand.
One of the major issues that continue to plague the cryptocurrency market is the scalability issue. As the early blockchains relied heavily on the Proof-of-Work (PoW) consensus mechanism, it led to serious congestion issues. Some of the leading cryptos including Bitcoin and Ethereum are based on this PoW consensus algorithm. As the network’s congestion increased, the transaction fees also increased.
In the case of Ethereum particularly, there is a significant increase in the new projects (especially due to the significant increase in the DeFi platforms). With the rise in congestion, the Ethereum network is frequently facing the twin problem of transaction delays for the average user as well as more fees. However, Ethereum is currently undergoing an update to ETH 2.0, which will transform the network from Proof-of-Work to a Proof-of-Stake consensus mechanism.
To avoid these problems, the Solanas ecosystem has introduced systems that help transaction throughput of the network for scaling proportionally to its bandwidth. An example of Solana network’s superiority in the matter of transactions is given below:
Now, you know how useful the Solana network is and how its architecture makes it superior to the giants such as Ethereum and Bitcoin in terms of transaction speed and bandwidth.
Solana network helps in scaling up so that increasing demands of the global economy can be met. In addition, the increased scalability makes Solana a better blockchain, especially for Dapps like staking protocols and DEXs. The benefits of the Solana (SOL) network are:
Solana’s architecture is trustless and distributed, making it ideal for day-to-day commerce. This helps you to make transactions across the globe in seconds for a fraction of the cost of the leading cryptos such as Bitcoin and Ethereum. The best part is that no one can stop, block, or confiscate any transaction made through Solana (SOL) because the network has no centralized control over it.
Solana is a delegated staking blockchain, which enables its users to secure a passive income by staking their SOL coins on the network. Staking protocols are becoming more and more popular among users because they enable them to learn and at the same time provide them the ability to earn stable rewards in comparison to trading SOL.
Solana provides you with a technological leap as it provides you with one of the most advanced blockchains currently. The developers behind Solana have been successful in creating a network that surpasses the capability of most payment processors available today, in terms of both tps (transactions per second) and functionality. While Solana can complete 50,000 transactions per second, Ethereum and Bitcoin can complete just 12 and 7 transactions per second respectively.
This is the reason why it is expected that more and more developers would switch over from their original blockchains to Solana as the other crypto networks continue suffering from concerns of scalability. This amazing use-value of Solana makes it one of the major reasons for investing in SOL.
At the time of writing, the SOL price is hovering around US$32, around 45% lower than its ATH (all-time high) at US$58.30 (reached 2-months back on May 18, 2021). Technical analysts believe that an Elliot wave series is forming and at the end of the wave the SOL price will reach US$120. They also see the formation of a bullish butterfly harmonic pattern after the completion of the Elliot wave series.
The different price predictions of Solana (SOL) are:
Solana project is a highly functional open source project that uses the permissionless nature of blockchain technology in providing DeFi (decentralized finance) solutions. Solana protocol facilitates the creation of DApps (decentralized app).
It introduces a ProofOfHistory PoH consensus and combines it with the blockchain’s underlying PoS (proof of stake) consensus for improving scalability. The most interesting thing about Solana project is that 8 different major technologies are involved, enabling it in the runtime to process tens of thousands of smart contracts parallelly.
This innovative hybrid consensus model has made decentralized finance accessible on a larger scale to all participants in the financial world, right from institutional investors/traders to small-scale traders. What makes Solana so popular is its usability in real life and the protocol’s greater scalability, thanks to the proof of history PoH consensus and transaction processing unit. Anatoly Yakovenko and his former Qualcomm colleague Greg Fitzgerald founded Solana Labs project (Solana Foundations) back in 2017. In 2020, the Solana protocol and SOL token were released to the public.
The maximum number of transactions per second on Solana protocol is 59.490. Each block of SOL is created (transaction processing time) at every 400 milliseconds. The cost of each transaction is therefore ultra-low, which is US$0.00001 per transaction. All these figures are aligned to its mission of supporting the high-growth and high-frequency blockchain applications and at the same time democratizing the global financial system.
Solana’s usage increases manifold when it is used for staking and yield farming. A Swiss-based company that focuses on the design, structure, and issuance of tokenized financial instruments, Digital Assets AG, has used the Solana blockchain for tokenizing stocks. This is yet another major use-value of the Solana blockchain.
Solana price is currently (early August 2021) hovering around US$33. Its 24h high and 24h low are US$32.40 and US$35.60 respectively. In fact, its 7d high and 7d low are US$27.01 and US$36.87 respectively. The Solana price is expected to increase to anywhere from US$96 to US$391 in the coming 5-to-7 years.
You can buy Solana against various fiat currencies (US Dollar USD, British Pound, Canadian Dollar CAD, South Korean WON, Singapore Dollar, Chinese Yuan, Hong Kong Dollar, etc.) through a wide array of cryptocurrency exchanges (or crypto APIs.
If you want to increase your investment by 3-to12-times in a few years, buy Solana coins now. Keep an eye on the market news, price statistics, block times, and others to time your trading of SOL for maximum profit.