4 Reasons To Invest In Solana

Solana mainnet was launched in March 2020 with the aim to solve Ethereum’s problems. Solana has a very cheap transaction fees and can process 400x – 1,700x more transactions than Ethereum. Solana focuses on speed and scalability. It wants to create decentralized version of payment to can compete with Visa. Here are 4 reasons to invest in Solana.

1. Revolutionary Technology

Anatoly Yakovenko the founder of Solana is a man of exceptional talent. He worked as a software engineer at Qualcomm for 13 years. Qualcomm is a company that make chipsets for smartphones. He started to come up with the idea of developing a new blockchain network in 2017.

Proof-of-History

Solana uses proof-of-stake mechanism which is energy efficiency. The network can produce new block every 400 millisecond. Anatoly Yakovenko added build-in clock time or timestamp in order for validators to receive transaction second by second.

TPS

Solana can process 65,000 transaction per second. Currently, the network handle around 4,300 transactions per second. It has a lot of room to support more transaction as the network grows.

Time To Finality

Solana takes 12-13 seconds to process a transaction. Solana speed is similar to Avalanche, Polkadot, and Near Protocol.

2. Near Zero Fees

Solana has a near zero transaction fees. Fees start at 0.0008 SOL ($0.00025) per transaction, Solana has the cheapest fees among the blockchains. Low fees are suitable for micropayment especially GameFi.

3. Relatively Strong Ecosystem

Solana team is still active in developing the ecosystem. They are trying to make Solana blockchain to have real adoption.

Solana Ecosystem

-Phantom wallet

Phantom is a software cryptocurrency wallet uses for Solana.

-MagicEden

-MagicEden is an NFT marketplace that support many blockchains, but it emphasizes on Solana.

-Raydium

Raydium is an automated market maker on Solana blockchain.

-Serum

Serum is the main decentralized exchange on Solana.

-USDC

USDC is a popular stablecoin use for Solana blockchain.

4. Fair Price

Solana is in crisis, so the price of SOL is not too expensive. Solana has fully diluted market cap of $11.4 billion.

Solana has been facing backlash after the collapse of FTX and Alameda Research especially its DeFi ecosystem. Raydium and Serum have seen a huge drop in the number of TVL. Their market cap drop significantly.

DeFi ecosystem in Solana needs to come back in order to drive up the price of SOL. Solana NFT sector has been flourishing. If Serum, Raydium, and other DeFi projects can increase their TVL, SOL price will definitely increase. 

Does Solana have any disadvantage?

The main problem of Solana is outages. Sometimes its blockchain is unstable. Solana blockchain has been stop producing new blocks for many times. However, the network finally come back. But outages remain Solana’s problem.

Solana Competitors

1. Polygon

2. Avalanche

3. Near Protocol

4. Polkadot

Solana Price Prediction

Solana valued $80 billion during last bull market in late 2021 and early 2022. Solana NFT market is doing well. If Solana’s DeFi platforms can come back and grow. SOL price can produce 5X return in the next bull market with $57 billion market cap.