- The Solana Protocol has future prospects
- The SOL is a token with a market capitalization of over $ 47 billion
- This puts the cryptocurrency in seventh place among the most important cyber currencies in the world
- SOL outperformed Bitcoin and Ethereum during last week’s correction
- Token destruction and new smart contract features have increased the value of SOL
Trading or investing in cryptocurrencies can feel like riding a runaway horse through a fire. They ran out of breath on September 7th just as and on their way to leap above the all-time highs of May and June. Ethereum lost more than Bitcoin, but Bitcoin formed a striking bearish price pattern on its daily chart on Tuesday, September 7th. The two major cryptocurrencies are now facing lower highs, which is anything but a bullish technical signal for the asset class.
Meanwhile, the extraordinary volatility could easily turn the past week into a flash in the pan on the way to new highs. The bulls see the move as an opportunity, while the bears shout smugly, which is exactly what they warned about.
Solana is one of the emerging cryptocurrencies that even recently overtook Dogecoin (). Even during the recent correction, SOL tokens outperformed Bitcoin and Ethereum.
The Solana Protocol has future prospects
In the world of cryptocurrencies, speed and efficiency are key success factors. Solana claims to be the fastest blockchain in the world and the fastest growing ecosystem in the crypto sector. It includes over four hundred projects including DeFi, NFTs, Web3, and others.
The slogan on Solanas Website reads: “Powerful for developers. Fast for everyone”.
On September 7th, Bitcoin, Ethereum and many other cryptocurrencies plummeted. Solana held up better than the rest of the field. In one Cointelegraph-Article dated September 9th said a SOL target of $ 500 could be “conservative”. “With more than two different NFT project launches in the ecosystem each day, there is a seemingly endless demand for SOL from individuals. As a result, its price has skyrocketed by more than 50% this week despite a market-wide crash.”
The SOL is a token with a market capitalization of over $ 47 billion
As of September 14, the SOL token stood at $ 158.80, which translates into a market capitalization of $ 47.356 billion.
The chart, which dates back to April 2020, shows the surge from below 60 cents to a high of $ 191.04 on September 7th. On September 14, SOL was trading at $ 158.80, 16.9% below its recent high.
This puts the cryptocurrency in seventh place among the most important cyber currencies in the world
On September 14th, a total of 11,875 crypto tokens haunted cyberspace. SOL that seventh largest cryptocurrency, had a market cap higher than 99.94% of its competitors. SOL was one place behind and one in front of Polkadot () in the tableau.
At $ 47.356 billion, SOL’s market capitalization is 2.25% of the total asset class value. Solana rose to a new record high on September 7, 2021, while Bitcoin, Ethereum and many other tokens marked lower highs.
SOL fared much better than Bitcoin and Ethereum during last week’s correction
The fall from the September 7th high took September 13th to its latest low of $ 43,310, a decline of 18.5%. However, the leading cryptocurrency was 33.9% below its record high of April 14, 2021.
Ethereum futures fell 23.3% from $ 4,056.25 on September 3 to its recent low of $ 3,110 on September 13. Ethereum’s record high from early May was $ 4,406.50, making its latest September 13 low represents a 29.4% drop.
Solana (SOL) has outperformed Bitcoin and Ethereum since their recent highs this month and their record highs in April and May.
Token destruction and new smart contract features have increased the value of SOL
Solana ended 2020 at $ 1.8421 per token. SOL tokens have skyrocketed, offering fantastic returns with a recent high of over $ 158 per token on September 14th. While the chart on Coinbase (NASDAQ 🙂 indicates the record high of 191.04 US dollars Messari the all-time high at $ 214.36. Given the fast-moving asset class, it is difficult to keep track of things, especially as different platforms report different price data. On September 14, Coinbase listed SOL as the seventh largest token, while Messari saw it in sixth place ahead of XRP.
Aside from the speed, efficiency and wide range of projects that Solana offers, the emphasis is on so-called Smart contracts. These are programs that are stored on the blockchain and are executed when previously defined conditions are met, which automates the fulfillment of the contract and enables a secure result. In addition, there was speculation on the market that Solana Could destroy tokens, i.e. remove available coins from the offer, which would increase the scarcity and thus the value of individual tokens.
Destroying tokens is the opposite of increasing the money supply, as central banks are currently doing.
Solana is a blockchain that could fix some of Ethereum’s weaknesses in terms of scalability and high transaction costs. SOL, DOT and Cardano () are a group of cryptos that some analysts also like “Ethereum Killer “ to name. In terms of efficiency, reliability and speed, however, only Solana can outperform Ethereum.
Another crypto success story has unfolded with the recent price development of SOL, one that will continue to push speculators in search of the next explosive token into the market. If you are considering investing in any cryptocurrency, from the smallest emerging token to bitcoin, only invest capital that you can tolerate losing. The high volatility and uncertainty of the asset class are a perfect example of how profit potential is proportional to risk.