Solana SOL Ethereum comparison
Investing.com – was one of the few blockchains that wasn’t hit quite as hard by Tuesday’s Flash crash. Yesterday, however, things did not look good for the SOL either and the daily chart suggested that the downward correction towards 130 dollars will continue.
However, the market for cryptocurrencies recovered overall and Solana was able to benefit above average from this. At a current SOL / USD exchange rate of $ 204.98, the profit for the past 24 hours is 28 percent. And what is even more important, Solana was able, as forecast a few days ago, to fight its way up to 6th place among crypto currencies and oust it.
From here it can now go up rapidly, so that we also have to vacate their places for Solana. It lacks less than $ 10 billion in market capitalization.
SOL continues triumphant advance
The Solana blockchain, developed in the Solang programming language, is currently one of the fastest growing technologies in the crypto sector.
While it is still not smart contract capable and has to contend with high fees and slow transaction executions, new projects in the field of decentralized finance (DeFi) and non-fungible tokens (NFT) are constantly emerging on Solana.
Cyclos develops liquidity pool for Solana
One of the brand new projects that is emerging on Solana is Cyclos. The company raised $ 2.1 million to develop its platform. What you want to develop is basically a liquidity pool that is connected to the decentralized crypto exchange (DEX) Serum.
The various market makers should thus have the opportunity to implement individualized prices directly in the serum order books. Completely new functions such as range orders, stop loss and limit orders are also added.
Cyclos promises the liquidity providers higher returns, which of course meets with open ears and loosens the necessary capital for development. Investors include CMS Holdings, Hashkey, Coin98 Ventures, Solana Capital, Gate.io, and a few more.
The secret of success behind the SOL
The most important factor behind the increasing popularity of SOL is the technology used. Many of the long-established blockchains rely on Proof of Work (PoW). A very energy-hungry system, which leads to high costs and low transfer rates.
Solana, on the other hand, relies on a unique combination of Proof of History (PoH) and Proof of Stake (PoS). This drastically reduces energy consumption and transaction costs, while performance increases rapidly.
There is only one other blockchain that is based on the same approach and has improved the consensus that is essential for a blockchain to such an extent that it is probably the most efficient blockchain in the world trades – SafeCoin – the first community version of Solana.
SafeCoin founder Jeff Galloway gave Investing.com an exclusive interview on the latest developments around Solana.
Here is the summary:
“I only took a quick look at Cyclos. It appears to be another liquidity pool for the growing liquidity provider market, much like Raydium.
Our DEX will be called SafeSwap and will have extensive interoperability with ETH, BSC and Terra. In addition, there is compatibility with other chains such as and based on projects. This enables us to offer a much wider range of markets than is the case with other DEXs. With a better user interface and trading experience, of course.
We are in the final stages of completing our Wormhole II bridge for SafeCoin. Once this milestone has been mastered, we will concentrate fully on DEX.
Wrapped Safecoin, tokens and most of the core programs are already working and activated. “
Solana has already successfully positioned itself ahead of Cardano in the field of smart contracts and is trying to catch up with Ethereum through a technical lead.
But in the slipstream of the SOL a new ecosystem is already emerging that can compete with the big ones in the future. No one is paying any attention to SafeCoin yet, because it is listed below $ 0.50 and because it is limited to 36 million coins, it does not have a high market capitalization. Or did you already know Solana 1.5 years ago when the SOL / USD was at $ 0.5?
Solana technical analysis
Solana really did it – yesterday’s closing price was not only above the 23.6 percent retracement of the rally from $ 66.28 to $ 194.30, it was close to its recent high.
A candle with a range of an unbelievable $ 50 formed on the daily chart. The long fuse and the large body of the candle suggest that, against all technical resistance, things are going up.
Today the SOL made its new all-time high at $ 215.90. The next goals are the 123.6 percent Fibonacci extension at $ 224.51, 138.2 percent Fibonacci extension at $ 243.20, and 150 percent Fibonacci extension at $ 258.31.
Support, on the other hand, is at the psychological level of $ 200 and previous highs of $ 194.30.
From Marco Oehrl
If you want to learn more about the energy efficiency of blockchains, then take a look at the article.
Note: This article does not constitute investment advice or a solicitation to buy or sell any asset.