Solana (SOL) has become a blockchain dark horse with ultra-fast transactions and low fees, soaring to $260 in 2021, falling below $10 in 2022, and now experts are optimistic about breaking $600 in 2030!
What is Solana(SOL)?
Solana (SOL) is a programmable blockchain founded in 2017 that bears a striking resemblance to Ethereum — in fact, the SOL chain is often referred to as the "Ethereum killer". The native token of the public chain is SOL coin, which is used to pay all fees on the SOL chain.
Solana, which aims to execute high-speed transactions without losing the decentralization of its core functionality, uses a new mechanism called Proof-of-History to solve the traditional throughput constraints that exist in the Bitcoin (BTC) and Ethereum blockchains.
Solana brings several advantages to users with its delegated proof-of-stake mechanism. Christian Hazim, an analyst at ETF provider Global X, said the historical algorithm adds a layer of security to the network.
Essentially, Solana solves two of the three problems identified by Ethereum co-founder Vitalik Buterin in his blockchain scalability, security, and decentralization trilemma.
Although Buterin initially claimed that Ethereum would solve all three aspects of this trilemma, most experts believe that the network only addresses two factors: security and decentralization.
However, Solana aims to solve two parts of the trilemma: security and scalability. SOL's Proof of History algorithm provides unique security for the network. The speed at which the Solana platform performs computation increases scalability.
With its strengths, Solana quickly attracted a lot of projects to join. In 2021, Solana's cryptocurrency, SOL, soared by nearly 12,000%, with a market capitalization of over $66 billion at one point, making it the fifth-largest cryptocurrency by market capitalization at the time. However, SOL still failed to escape the crypto massacre of 2022. However, with the continuous efforts of the project team, SOL has managed to recover and strive to push its market capitalization to fifth.
Why is Solana known as the "Ethereum killer"? How is it different from Ethereum?
With the continuous improvement of its features, Ethereum quickly became the mainstream operating system of cryptocurrencies, sitting on a large number of users and traffic. However, with the widespread use of Ethereum, many of its problems have begun to be exposed, mainly network congestion, high fees, slow transaction speeds, and so on.
Due to the increasing number of people entering Ethereum, the congestion of the Ethereum network greatly affects the user experience, and although Ethereum is moving towards the more advanced ETH 2.0, the development progress is very slow, so that a group of users have begun to look for new public chains to replace Ethereum.
That's when Solana came into view, and it soon launched its mainnet in March 2020. Solana claims to be "the world's fastest high-performance public chain", with very fast transaction speeds and very low fees, which largely compensates for Ethereum's shortcomings. That's why users call it the "Ethereum killer".
So, what's the difference between Solana and Ethereum?
Solana | Ethereum | |
---|---|---|
launch | In 2020 | In 2015 |
Tokens | SOL | Ethereum |
Maximum supply | not applicable | not applicable |
platform | open source | open source |
Smart contracts | ✔ | ✔ |
Decentralized Finance Applications (dApps) | ✔ | ✔ |
NFT | ✔ | ✔ |
Number of dApps | More than 350 of them | Close to 3,000 |
- Smart contracts: Solana and Ethereum have smart contract capabilities, which are essential for running cutting-edge applications such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
- Consensus: Both Solana and Ethereum use a proof-of-stake (PoS) consensus mechanism, where validators use their cryptocurrency as collateral to gain the privilege of assisting the blockchain in obtaining rewards. Solana is improving PoS by implementing PoH.
- Speed: Much of the talk around Solana in 2021 was due to its distinct advantages over Ethereum in terms of transaction processing speed and transaction costs. Solana can process up to 50,000 TPS, with an average cost of $0.00025 per transaction. In comparison, Ethereum can only handle less than 15 TPS, while the average transaction fee is around $1.68.
2025-2030 Price Prediction: A New High of $600 Can Be Expected!
Price outlook
2025: Low $139.85, High $246.18, both $165.21, ROI 98.6%.
2030: Low $525.45, High $620.84, both $560.38, ROI 400%.
Forecasts show that SOL will grow aggressively in the future!
Historical review
2020:$0.77→$1.84,+139%。
2021:$1.85→$178.52,+9548%。
2023:$10.15→$99.27,+878%。
In 2024, it has exceeded 100, and the rise is expected.
Rising pusher
Overdrive: 65,000 TPS to kill Ethereum.
Low fee: $0.01 on average beats ETH $10-50.
Institutional fever: DeFi, NFT, and gaming are hot.
Deflation: Destruction mechanisms drive up scarcity.
vs. Ethereum
SOL is fast, low fees, market value 5 billion VS ETH 45 billion, huge potential!
Risks lurk
Network outages are frequent.
Regulatory pressure is mounting.
Rivals such as Ethereum are eyeing up.
Is $600 credible in 2030?
If speed and adoption continue to lead, $600 is in sight! However, competition and market variables need to be vigilant, SOL is suitable for the long term, think more before entering!
summary
Solana (SOL) is a programmable blockchain founded in 2017 that has been dubbed the "Ethereum killer" by users due to its fast transaction speed and low fees.
Since its launch, Solana has grown rapidly, and SOL has become one of the most popular cryptocurrencies. However, in 2022, hit by the collapse of the former exchange FTX, the SOL price began to drop significantly, also causing a huge ripple effect across the entire Solana DeFi ecosystem.
In order to restore investor confidence, solana has launched a number of new projects, among which the emergence of a new meme coin, BONK, has injected new vitality into the solana ecosystem. In addition, looking forward to the future of SOL Coin, although its ecosystem was hit hard last year, with the efforts of the project team, SOLANA is continuing to develop with great potential for the future.
原创文章,作者:btc,如若转载,请注明出处:https://www.xf1233.com/a/999