The year 2021 has been a bull run for most cryptocurrencies. It made some stocks pack up and be sent home while some previously unknown ones have come to light. Solana is one such token. It is currently the 7th largest Cryptocurrency by market cap, taking over its competitors like Stellar, Theta, and Tron. One can easily exchange current currency holdings to SOL on eth to sol.
Solana had been nicknamed the Ethereum killer as it was released as a direct competition to Ethereum. Cordana followed soon after. Just four weeks ago, Solana had been trading at USD 70 and had reached $160. It keeps growing every day and has been living up to its hype of being the Ethereum killer. Investors have been going crazy over this crypto right now and have been either booking profits or investing more. It is not unknown to investors that Cryptocurrencies have been on the rise this year, and all stocks have been growing steadily. Solana is not shy of that opportunity too.
What is Solana (SOL)?
Solana was created with a similar concept to Ethereum. That is to create smart contracts and have been becoming more popular amongst developers. The developers creating Defi apps and NFTs prefer platforms like Solana, Cordana, etc. The increasing popularity of smart contracts has boosted the company as it had claimed, thus going beyond expectations. Solana can process 70,000 transactions per second which is much higher than Ethereum and has already crossed it in the number of transactions processed by it till now.
Is SOL a good investment?
The token has already crossed Ethereum in the number of transactions processed. That is a significant achievement for a token that has been introduced recently. Also, it has a recent burning token event that will pump up Solana’s price even higher. Solana has a massive bandwidth and its ability to process a vast number of transactions in a small amount of time, making it a favorable choice for many developers. It has been increasingly used for developing apps and even platforms. Solana is also getting ready to launch smart contracts when it competes directly with ADA. So in all, Solana looks like a favorable investment for the present.
Even though predictions are always moderate, Solana has been predicted to only grow in folds. It has doubled its value since January and shows no sign of slowing down. It can be predicted that by December 2021, SOL could be trading well at or around $300. Even if this seems unrealistic, none of the predictors have stated that Solana could be trading lower than its current value at the end of the year. It is a reassuring sign and should be enough to keep the hype going.
Investor sentiment regarding the token has also helped the prices soar. The investors who couldn’t invest in ethereum at the right time believe that Solana will make a similar run and invest early. Also, the increased acceptability of Defi apps and NFTs have helped the price pump. Many investors believe that in the coming years, Defi apps will completely replace the traditional financial intermediaries. If such a situation arises, then tokens like Solana will become the next there. To keep an eye out for the price of Solana, check out Lets Exchange io.