To accelerate the much-needed efforts to solve the problems of scalability and transaction costs, Anatoly Yakovenko founded the Solana platform in 2017.
At its core, Solana is a blockchain designed for mass adoption. The platform prides itself on being fast, scalable, eco-friendly and global.
Solana’s blockchain architecture is designed to enable smart contracts and decentralized application creation (dApps). The platform meets the requirements of a number of decentralized financial platforms (DeFi) and non-fungible token (NFT) markets.
After a series of funding rounds, Solana’s mainnet went live in 2020. His efforts are ambitiously aimed at solving the blockchain trilemma. However, Solana saw some setbacks on the “centralization” front.
Solana (SOL) combines Proof-of-Stake with Proof-of-History (PoH) to create a unique hybrid consensus mechanism. His innovative approach to technology has gained considerable popularity in the market. Moreover, the low transaction fees make it practical for stakeholders to transact frequently on their blockchain.
While the platform’s utility and performance architecture looks quite impressive, let’s take a look at SOL’s journey so far and its upcoming roadmap to understand its future prospects.
SOL is the native cryptocurrency of the Solana blockchain. The primary use of SOL is to compensate Solana clusters for transaction validation. In addition, SOL holders can use their tokens to earn APY rewards.
The cryptocurrency surged over 13,000% after a landmark buy in 2021. During this bullish phase of 2021, it surged to ATH $258.93 on November 6.
Like its analog altcoins, 2022 doesn’t really motivate SOL investors when we’re battling a bear market. Moreover, after the recent blockchain hack went public, thousands of users claim to have lost more than $8 million of their funds.
This project has successfully attracted the interest of private and institutional investors around the world. In fact, as we move through a bear market, institutional investors are still holding on to their holdings, according to a CoinShares report.
Can SOL break the $50 mark?
In a recent interview, Sam Bankman-Fried stated that he thinks SOL is relatively undervalued. Looking deeper into the ecosystem can help us form an informed opinion.
To determine the likelihood of SOL overcoming its immediate resistance on its weekly chart, let’s take a look at some ecosystem updates and hurdles that can help us gauge the coin’s potential.
- SOLANA PAY
Solana Pay is a digital payment platform that offers businesses and consumers instant, free transactions that claim to have no environmental impact by leveraging the power of the Solana network.
The fundamental premise behind Solana Pay is that payments and the underlying technology are transforming from the utility of a necessary service into a true channel of communication between merchants and consumers.
The protocol offers a specification that allows users to send digital dollar currencies such as USDC from their wallets directly to merchant accounts, with fees measured in cents instantly. Basically, businesses can harness the power of the Solana blockchain at the same speed as traditional payment networks.
In her quest to redefine the world of commerce, Solana may see increased user interest in the form of increased dApp activity. These developments will affect investors’ perceptions and will help SOL to book significant profits in the future.
- BLOCKCHAIN GAMES
As the blockchain gaming space continues to grow exponentially, the GameFi project continues to grow. To meet the growing need for efficient blockchain gaming architecture, Solana redoubled its efforts to “bring web 3 games to the speed of web 2”.
As we build tomorrow’s games with internet speed, high performance and low cost Solana creates a supportive environment for game developers.
Solana Ventures and the Solana Foundation recently created a $100 million fund to support the growth of NFT, blockchain gaming, and DeFi projects in South Korea.
Having established itself in the DeFi space, NFT marketplace, and other Web3 applications, the emergence of gaming projects on its blockchain will further increase the utility of the token.
- NFT SALES
An analysis of the total sales volume of blockchain-related NFTs over the past 30 days will show that Solana is in second place.
Blockchain is seeing over 18% monthly growth. Ethereum, on the other hand, saw a 23.75% drop during the period. The recent increase in NFT volume has ultimately made SOL more profitable while demonstrating the underlying growth of its NFT project.
Meta’s intention to include Solana-based NFT on Instagram also revived hopes for token recovery.