What Is Solana Coin (SOL)?
Anatoly Yakovenko and Greg Fitzgerald created Solana with the idea that it would solve the known problems of modern blockchains, so as to speed up the calculations necessary to generate new cryptocurrency and at the same time speed up the creation of smart contracts.
The Solana project was born in 2017, and it introduced the innovative consensus mechanism Proof-of-History. As soon as the network became stable and fast enough to meet the needs of the market, it was made available to everyone from 2020, both as a blockchain network for smart contracts and as a new cryptocurrency with the ticker symbol SOL linked to it.
The Current Solana Coin Price
Solana was priced around a dollar when it was released and took advantage of the several bulls runs in 2021 to hit an all-time high of $260. The Solana coin price, as every other crypto asset, has been volatile and was influenced by the market drop that started at the end of 2021 and doesn’t seem to be over yet. However, it remains one of the most interesting crypto project that have emerged so far. If you want to know the current Solana coin price, you can check the graph below.
Where to Buy Solana Coin (SOL)
Solana is a very popular cryptocurrency by now, and after the highs it reached last year, it could be purchased on some of the best platforms for crypto trading. Brokerages like eToro offer SOL, as well as centralized and decentralized exchanges such as Binance, Kraken, Uniswap, and Gemini.
Solana coin is as volatile as any cryptocurrency, and you should consider it when deciding where to buy it. You could research which platform offers lowest taxes for buying and selling the crypto, as well as which one is the fastest to use, and do they provide another perks, like educational content, or a built-in wallet. If a platform can give you more than a place for buying and selling SOL, you could use it to improve your trading experience.
What Is the Best Wallet For Solana Coin?
You can store your SOL tokens in two types of wallets – hot storage wallets and cold storage wallets. It depends on your preference as to where you’d like to store your private keys. Hot storage wallets are connected directly to the internet, where as cold storage ones are external devices, often referred as hardware wallets, which you connect to your computer only when you’re making the crypto transactions. Both types come with their pros and cons, which you should consider when making the choice where to store you Solana coin.
Popular hot storage wallets which you can use for SOL are Trust Wallet, Exodus, and Swipe. If you’d like to store your tokens on an external device, you can pick from cold wallets like Trezor, Ledger, or Safepal.
How to Make Money With Solana Coin
Solana has proven its potential as a investment with good returns in the past. Currently, it may be suitable for investors who are looking for:
- New cryptocurrencies: Solana Coin is one of the most recent and fastest growing cryptocurrencies, so it is possible to invest in it now while its price is still not as high and resell it at the right time to earn. You could also use it as a bargaining chip with other emerging cryptocurrencies or for other higher value cryptocurrencies
- Very fast transactions: The blockchain technology behind the Solana network allows you to immediately obtain new cryptocurrency without having to increase the computing power indefinitely to be able to mine new cryptocurrencies. Unlike Bitcoin, Solana is immediately transferable to the your wallet a few seconds after the request
- A good alternative to Ethereum: The Solana blockchain is much faster and requires fewer resources than those requested by Ethereum and Bitcoin because of SOL’s innovative consensus mechanism, a combination of Proof-of-History and Proof-of-Stake
Solana is suitable for investors who are interested in new cryptocurrencies, faster transactions and Ethereum rivals. Its potential seems to be very high, making investors excited for the token’s and the blockchain’s future.
Solana Coin and NFTs
As mentioned earlier, Solana is in direct competition with Ethereum, which allows you to create numerous projects of different nature within its network. Solana offers all the technology needed to create decentralized apps (dApps), blockchain games, and non-fungible (NFTs) and fungible tokens. The blockchain also has its own NFT marketplace, called Solanart.
These NFTs generated by Solana work in a very similar way to those seen on Ethereum: they certify the uniqueness of the possession of a digital asset, they can be collected, they can acquire value and they can also be sold and exchanged using Solana Coin as a transaction currency.
The reason behind SOL’s highest price yet were also NFTs. If the popularity of non-fungible tokens and that of Solana continues, they may interact again in the future for great results.
What Are the Pros and Cons of Solana Coin
Pros of Solana (SOL)
✔️ Innovative consensus mechanism, combining Proof-of-History and Proof-of-Stake
✔️ Fast transactions and low commissions
✔️ NFTs and smart contracts
✔️ Low environmental impact
Cons of Solana (SOL)
❌ Repetitive network outages and downtime
❌ May not be decentralized enough
❌ Faces many worthy rivals in the field it’s claiming to be competing
Is Solana (SOL) Worth Following?
The growth of the Solana network has been exponential, as it went from around a dollar to $260 in 2021. Its value has then dropped but has always maintained a very high level of attention among investors, who see the Solana network as a very valid alternative to the decentralized network model proposed by Ethereum: a fast blockchain network on which to certify smart contracts, create apps decentralized, blockchain video games with NFT and much more.
The Solana network has suffered outages in the past which has made investors anxious about the blockchain and the crypto. However, some investors still consider the Solana coins an excellent investment in the medium and short term. This is due to the large focus to the DeFi that Solana has taken, which is a fast-growing sector. The connection of the project with NFTs may boost its price upwards once again, providing people returns on their investments. It’s also possible that the network suffers more and people lose trust in Solana. But so far after every down time, the network has managed to get back online and the developers claim to be trying to solve the issues. Whatever comes next, this is certainly a project worth following.
FAQs About Solana Coin (SOL)
The current and ciculating supply of Solana coin is 340,434,931.71. There’s no information about the maximum supply.
Many investors and financial specialists expect Solana to be bring good returns, as its blockchain network is in leading among the fastest and safest to process blockchain-based smart contracts and products. If the market explodes in the next 3-5 years, Solana will play a leading role and its cryptocurrency could be among the most traded in the world.
Currently, the cryptocurrency market is struggling to recover from months of high volatility. That’s why, even the most optimistic websites don’t predict for the Solana price to go over $200 in the next years. You should keep in mind, though, that predictions should be taken with a grain of salt, as they’re not an investment guide. Only time can tell if SOL will reach or go above its current highest price.