Solana (SOL) is one of the top 10 cryptocurrencies that has risen in value unbelievably hard this year. The ecosystem that competes for Ethereum (ETH)is still largely in its infancy. Yet the solana course has taken off like a rocket in recent months.
At the beginning of this year, SOL traded around a price of $1.50 on crypto exchange binance. Together with the market, the price then rose to a value of $50. Then came the market-wide correction in May that pushed the price back to $20. From there, however, SOL rose again for a new one yesterday all-time high (ATH) reaching $98.95 on Binance. In short, investors who got there early this year are now looking at gains of over 5,500%.
Solana is a project that supports smart contracts and is mainly aimed at realizing an enormous transaction speed with which it competes with Ethereum, among others. The holy grail of blockchain technology is decentralization coupled with great processing speed. However, this still proves to be quite a challenge, as these two aspects do not simply go hand in hand. Solana was recently listed by the Dutch crypto exchange Bitvavo.
$SOL simply does not care about market pullbacks
– Rager @ (@Rager) August 28, 2021
Several analysts remain despite the huge increase in recent months bullish. For example, The Crypto Dog sees that Solana is still in its infancy, and therefore remains interesting for many investors. “I think the ecosystem is still very early and there is still a lot of profit left for investors in this situation,” the analyst said. in a tweet.
And given that Solana is a direct competitor to Ethereum, it’s no surprise that the altcoin could steal some of Ethereum’s market share. Matt Ballensweig of digital lending platform Genesis notes the huge difference between the market caps of the two.
Solana $SOL market cap = $23B
Ethereum $ ETH market cap = $362B6% relative value…? seems pretty pretty lowww.
– Matt Ballensweig (@ MattBallen4791) August 27, 2021
Still, a downward correction is not impossible, especially now that SOL has just set an ATH. A warning for such tweets is, of course, always that past performance is no guarantee for the future. It is important to always do your own research.
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