What is Solana (SOL)?

The highly functional open-source project Solana, which depends on the inherently permissionless nature of blockchain technology, provides blazing support for decentralized financial (DeFi) solutions. The Solana Foundation, based in Geneva, Switzerland, officially launched Solana in 2020, however, the project's conceptualization and initial development cycle began as far back as 2017.

The Solana protocol aims to make the present and future development of increasingly complex decentralized applications (DApps) simpler. The Solana team has made improving the scalability of their blockchain a priority by incorporating a proof-of-history (PoH) consensus which works seamlessly in conjunction with Solana’s underlying proof-of-stake (PoS) consensus. So seamlessly that it has become a key technology to keep close taps as its growing usage in mobile payment systems is ongoing.

It’s the innovative presence of a hybrid consensus technique, that will continue to draw interest from both institutional and day traders. Keeping their eye on the prize of further growing the expansion of access to decentralized finance is a priority for the Solana Foundation.

That’s Awesome, But What Really Makes Solana So Unique That It Can Grow 20x in Price?

Anatoly Yakovenko and his brilliant team are the masterminds responsible for one of the most important tools at Solana’s disposal is its impressive use of a proof-of-history (PoH) model. The well-thought-out implementation of this approach makes it possible to scale the protocol up infinitely higher, which enhances its main selling point: usability.

Solana is well-known and regarded by people who follow crypto projects as a result of the blockchain's incredibly quick processing rates Validation times for both transactions and smart contract execution can be drastically decreased with Solana's hybrid protocol. This process has also generated a fair amount of Institutional interest that has also been sparked by Solana's lightning-fast transaction processing times and well-implemented Staking system.

The Solana protocol is intended to be advantageous to both commercial clients and casual users. Unlike Ethereum and Bitcoin, one of Solana's main promises to customers is that they won't be caught off guard by growing taxes and levies. The structure of the protocol enables scalability, prompt processing, and minimal transaction costs.

As of Feb 2023, Solana’s SOL token has a fully diluted market cap well in excess of $11 billion placing it 11th overall in crypto market size. Much of this growth occurred during a spectacular bull run in which the price of Solana increased by almost 700% beginning in mid-July 2021! That is 7x which establishes a trend pattern that bulls like to see in a token.

What was the catalyst aside from following the larger bull market trend?

In that given period SOL’s price began rising rapidly following the introduction of the Degenerate Ape NFT collection, consisting of 10,000 artworks residing on Solana’s blockchain. Factors underlying this growth in valuation included but were not limited to:

• Increased developer activity on the Solana ecosystem.

• More institutional interest.

• The expanding DeFi community.

• The growth of the NFTs and gaming vertical on Solana.

• The development of the Solana Saga phone.

On September 9, 2021, the cost of Solana increased to its ATH of $216. It currently stands at the writing of this article at $20.90. A return to its ATH would constitute a 20x return.

Solana has been praised for its efficiency and speed, but some have even gone further and have predicted that it will be a clear-cut Ethereum competitor. They believe that Solana can easily compete with the leading smart contract platform on the market. Solana’s aim of growing into the "Visa of crypto" has, however, been harmed by frequent interruptions. For Solana to take off questions regarding it utilizing easy-to-exploit flawed tokenomics to favor venture capitalists must be settled.

Legal Disclaimer : The information provided on this crypto website is for educational and informational purposes only and should not be construed as financial advice. This website does not provide investment, legal, or tax advice, and the content provided is not intended to be relied upon for making financial decisions. Any investment decisions made by the reader based on the content of this website are solely their responsibility. This website does not endorse or recommend any particular investment, product, or service. The reader should always do their own research and seek professional advice before making any investment decisions. This website will not be held responsible for any losses incurred by the reader.