Published 11:59 IST, September 2nd 2021
Solana Price Prediction: Why is Solana SOL going up? Is SOL a good investment? Read
SOL, which was termed the ‘Ethereum killer’ by investors is living up to its hype trading at USD 111, having rallied from USD 70 two weeks ago.
The cryptocurrency market has been on the rise lately and Solana has been the latest coin to explode. The promising cryptocurrency which was termed the ‘Ethereum killer’ by investors along with Cardano (ADA) is finally living up to its hype. The token has been surging for the past few weeks and continually making all-time highs. Solana or SOL is currently trading at USD 111, having rallied from USD 70 two weeks ago.
Why is the Solana price surging?
It is a fact that all cryptocurrencies have been performing well in the market lately, but Solana has been the best of them. The “so-called” Ethereum Killer is indeed out-performing its competitors and is probably on the way to live up to its nickname. It is no secret that Solana is currently the fastest cryptocurrency in the market, and its features keep getting improved by the makers.
Solana was founded in 2017 as a direct competition to Ethereum. Soon, Cardano (ADA) joined the race. Like the Ethereum and ADA, SOL supports smart contracts and is gaining popularity with developers building DeFi apps and creating NFTs (non-fungible tokens). Among the three, Solana is the fastest by supporting nearly 70,000 transactions per second and that too at a meagre price. The coin briefly climbed up to the USD 130 mark before coming down as many investors booked profit in the period. However, the coin, on its current trajectory could rally back to the mark in no time and could even cross USD 150 in the coming months.
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Is SOL a good investment?
SOL has already crossed Ethereum in the number of transactions done, which is a huge feat to achieve for such a freshly introduced token. Solana’s large bandwidth and unmatched transaction speed make it really favourable for all uses including building platforms and exchanges on top of it. According to market observers, Solana’s surge could keep continuing owing to its upcoming burning of tokens. Similar to Ethereum’s burning of tokens, this move could pump SOL prices even higher. Apart from this, Solana is also set to introduce smart contracts soon, which will make it compete directly with ADA in terms of usability.
Apart from this, investors’ FOMO has also played a major role in Solana’s surge. Investors, who missed out on the ETH bandwagon is convinced that Solana will make a similar rally and thus is jumping in. The excitement over DeFi and NFTs is yet another reason for investing in Solana. According to investor Kevin O'Leary of Shark Tank, DeFi apps is bound to replace financial intermediaries in the next few years and if it turns true, could further pump all coins dealing in the base including SOL.
IMAGE: SHUTTERSTOCK
Updated 11:59 IST, September 2nd 2021