Solana is currently one of the most popular blockchain platforms with a market cap of over $50 billion. It ranks just behind Binance Coin and Cardano in terms of the market cap, with Bitcoin at the top. The blockchain platform uses its own token called SOL. In the core concept of Solana lies an innovative algorithm called ‘Proof of History’. Solana is touted as the direct competitor and the #1 public enemy to Ethereum, but it is highly improbable that anything could kill Ethereum.
It’s quite hard to believe that Solana was trading at around just $40 on August 10, 2021. Within two weeks from that, it doubled to $80 and in the first week of September 2021, it traded briefly above $200 and has been trading in $170-$190 margin ever since. Currently, it has surpassed the market capitalization of both XRP and Dogecoin. As of September 11, 2021, Dogecoin has a market capitalization of $32 billion and XRP, $51 billion. Among these coins, Solana has been the quickest to rise to the top in the last couple of months.
For a long time, Ethereum and Cardano were considered to be the next Bitcoin, but that trend has slowed down with the rapid adoption and popularity of Solana. Many argue that Solana’s rise was only fueled by hype and a fear of missing out. Regardless, it’s worth noting that a coin cannot simply reach the top five only due to hype.
A coin’s price is primarily determined by its market capitalization and we can have a clear understanding of the coin’s future and potential in terms of it. Since Solana’s market capitalization increased five fold in a month, its price also increased by almost five times. However, if and when the market capitalization will increase to a certain point is purely a matter of speculation. Cryptocurrency market is very uncertain, volatile and largely unregulated. As it doesn’t have any regional barriers, meaning it’s not limited to any one country, you can see prices soaring to never-seen-before numbers overnight.
Now, it’s difficult to predict accurately about Solana’s price, but we can estimate based on its recent activity. In a single month, it reached $200 from a mere $50 and has remained well above $150 in recent weeks. It wouldn’t be logical to simply assume that it will do the same this month.
So, how will Solana achieve a price of $500? Well, it needs to start by getting to a market capitalization of around $150 billion, which is not an easy task, but not improbable either given the recent bullish run of Solana. In recent years, the last quarter of the year has never been too promising and prices don’t really go high during this time. But, 2021 has been different and it’s sent the cryptocurrency market to a market capitalization of 2 trillion US dollars, increasing by five fold since last year. We could see Solana hit the expected market capitalization well within the end of this year if we see bullish trends. That said, Solana could cross $500 by the end of this year.
Will Solana achieve $500?
If it keeps up the current trend, it surely will reach that mark.
Is Solana better than Ethereum?
Solana embraces the concept of ‘Proof of History’ and has some strong optimizations to achieve very high transaction rates and low fees. In that sense, it’s a much better blockchain than Ethereum. However, Solana has compromised on decentralization as its validators require very high specifications of computers to run, due to which there aren’t many nodes. But again, due to its strong principles and core concept, it does pretty well with a few validators.
What is SOL in Solana?
SOL is the internal token used by the Solana blockchain for its transactions.
How do I earn money with Solana?
For starters, you could simply choose to hold Solana and profit on the long-term price gains. Alternatively, you could also stake your SOL tokens on a staking platform and receive annual returns of nearly 10% in SOL tokens for staking. A safe way to stake your SOL tokens is to use the Phantom wallet, where you can stake easily with a few clicks.
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