There’s no doubt that SOLANA (SOL) has soared to new heights, achieving a solid multi-year peak. The surge has been constantly monitored by crypto enthusiasts worldwide. Leading crypto analysts point the surge to an increased escalating wave of investors favoring this crypto and Fear of Missing out (FOMO) regarding SOL.
At first glance, SOLANA price trajectory was remarkable considering the given initial promise as a Blockchain platform capable of going toe to toe with Ethereum (ETH). Thanks to its native token SOL, the token reached an all-time high (ATH) of $260.06 on November 6, 2021. With the broader cryptocurrency downturn, exacerbated by the collapse of FTX- a key investor in SOLANA, saw price plummet to a low of $8.14.
Here’s a closer look at SOL and whether FOMO train by investors is a serious consideration.
Despite the challenges experienced over the last couple of months, SOL’s recovery has been far much stronger than expected. The price alone exceeded $60 on crypto exchanges like Gate.io. Santiment, reports a highly notable uptick in positive investor sentiments. And this led to the largest price increase since the previous November.
With this renewed interest, experts suggest SOL’s prices may continue to rise while it continues to recover the 76.85% loss mark needed to revisit its ATH. Current SOL trading prices are marked at $60.10 having been up by 5.27% in the last 24 hours, thanks to a trading volume of $2,128,968,786.
What attributes this optimism is SOLANA’s underlying strengths. SOLANA is well known for its rapid transaction finality which has attracted numerous developers despite facing problems such as network outages. The network’s innovation extends not only to hardware initiatives solidified by the Saga blockchain-based mobile phone. This has helped underpin SOLANA’s aspiration to become the undisputed web3 equivalent of Apple.
Cathie Wood is an Ark investor who expressed confidence in SOLANA’s potential to gain ground and surpass Ethereum ETH in the long-term.
A favorable feature of SOLANA is its marketing position which has placed it prominently in the crypto ecosystem. SOL is the sixth largest token by Market Cap and gained attention during the 2021 bull market. The token offered a vision akin to ETH but with more efficiency and precision in transaction processing. SOLANA has seen a steady increase in its activity thanks to liquid staking protocols such as Jito, as reported by Kaiko. The market shows SOLANA has outperformed other altcoins especially in the US Markets including DOGE, LITECOIN, and MATIC.
SOL token has also benefited from a broader crypto rally which gained momentum around October, 24. The rally also saw Bitcoin (BTC) reach over $35,000, a peak not seen since May 2022. BTC rally was closely followed by Ethereum (ETH) which hit the $2,000 mark.
SOLANA’s journey has also been with notable challenges especially after the aftermath of the FTX crisis. Thanks to FTX, SOL saw its value drop by 70% in just 48 hours. Former CEO, Sam Bankman-Fried, was instrumental in SOLANA’s initial development. Despite facing these hurdles, SOLANA surged approximately 550% this year alone, outperforming major cryptos such as Bitcoin and Ethereum, they’ve seen gains of 127% and 70% respectively.
One of the primary uses of SOLANA has to be in the decentralized finance (DeFi) applications. Thanks to SOLANA’s speed and efficiency, it enables cost-effective and faster transactions compared to other Blockchain-based cryptos such as Ethereum. There’s been a steady growth in the DeFi ecosystem under SOLANA which helps offer services such as borrowing, lending, yield farming, not forgetting decentralized exchanges (DEXs).
Another important use-case of SOLANA is the non-fungible tokens (NFTs). Solana’s effectiveness in processing transactions faster at an affordable cost is what makes it an attractive option. SOLANA is best suited for buying, creating, and selling NFTs which has created a burgeoning market of digital art collectables including gaming assets under the SOLANA Blockchain.
In the overall gaming sector, SOLANA is increasingly becoming an adoptable application for gaming and metarverse. Thanks to its scalability and supporting complex in-game economies and virtual worlds, the token shows minimal latency therefore enhancing gamer’s experience.
SOLANA is also credited in the decentralized social media platforms by offering a Blockchain-based alternative to traditional social media. This has potentially opened up a new world in the Internet of Things (IoT) and other mobile applications.
The above use cases highlight SOLANA’s growth and role in various sectors. SOL is driven by its technological capabilities with a vibrant community of developers and users fully backing it.
Yes, you can stake SOLANA (SOL). Staking is a process where SOL token holders participate in the network’s security and consensus mechanisms by locking tokens in a smart contract. In return for their contribution of the staked tokens, they’re rewarded with an additional SOL token. Essentially, those who stake earn interest on their holdings.
Staking with SOLANA also involves choosing a validator to delegate your SOL tokens. Validators are what’s referred to as network nodes responsible for processing transactions and creating new blocks under the network. Rewards earned during staking depends on various factors including amount staked, inflation of the network, and the total number of SOL staked on the said network. The performance of the chosen validator such as uptime and reliability is another feature considered. SOLANA (SOL) can be staked in various crypto exchanges, this is where you lock the token without having to run nodes.
Once you stake on SOLANA, it helps secure the network, the more SOL staked, the more secure the network becomes. This makes it complex for any malicious player to control a significant portion of the total staked SOL.
Token holders can also stake SOL through various crypto wallets and exchanges that support SOLANA. You must carefully select a reliable validator and carefully understand the risks involved in staking. These include possibilities of slashing (penalty for validator misbehavior) and the changing value of SOL in the market. There’s also the usual lock-up period during which staked tokens can’t be transferred or sold.
Despite facing significant challenges, including market downturns and technical issues, SOLANA has recovered well and shown a remarkable ability to adapt and evolve. The rapid ascend in value boosted by increased investor interest and FOMO reflects SOL as a potential player in the Blockchain Space. Beyond SOLANA’s price trajectory, SOL’s diverse use cases in DeFi, NFTs, Gaming, and Social media including hardware innovations demonstrates its versatility. SOLANA is now appealing to a broad range of stakeholders. The opportunity to stake SOL tokens adds another layer of user engagement and potential high rewards for its community.
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