Solana Price Up 8.75% – Good Time to Buy SOL?

Solana aims to provide decentralized financial solutions (DeFi) by enabling decentralized applications (dapps) on its platform. The recent number of integrations with top dapps has resulted in several investors looking to buy SOL.

If you are still not sure about adding Solana to your crypto portfolio, this article will highlight some of the reasons why you should buy SOL for future returns.

Solana Blockchain is enjoying wide acceptance

One of the first things to look out for when investing in crypto is its diffusion. I mean adoption. Although the Solana blockchain doesn’t brag about the market cap of the popular Dapps platform, Ethereum, several companies and protocols have added support for their SOL token.

A teeming number with growing acceptance is the popular Swiss digital asset management company 21 Shares AG. On June 28th, the issuer of crypto-exchange-traded products (ETPs) announced that it will launch the industry’s first SOL-ETP on June 30th on the SIX Swiss Exchange. It is traded as ASOL.

A day later, Digital Assets AG announced that it had launched its tokenized shares on the Solana blockchain. This will allow investors to trade popular US stocks like Facebook, Apple, Microsoft, Tesla, and a few others around the clock. That way, they never have to wait for the market to open before taking a position.

Superior block finality resolution

In the fast growing DeFi subsector, fast processing of transactions is one of the key factors for success. In that regard, Solana is a clear winner.

The Ethereum network initially launched smart contracts, and this opened up a whole new ecosystem for the blockchain technology originally introduced by the Bitcoin network. However, Ethereum made the wrong choice when opting for a Proof-of-Work (PoW) consensus algorithm that the Bitcoin blockchain uses.

Although the security is top notch as both blockchains cannot suffer a 51% attack (with a single entity controlling more than 50% of the blockchain network). The Ethereum protocol lacks scalability and interoperability.

His PoW protocol required miners compete to solve math puzzles for block rewards and saw gas charges skyrocket and grids overloaded.

Solana, on the other hand, is in a completely different room. A proof-of-stake (PoS) protocol was used from the start, which is believed to be faster and less energy-intensive.

It also included an innovative timing mechanism called Proof-of-History (PoH). According to founder Anatoly Yavenko, PoH was born from Bitcoin’s SHA256 hashrate and he realized that transactions on the blockchain can be timestamped in real time to ensure that all transactions are validated on time.

This combination enables Solana to validate up to 65,000 TPS and is expected to increase to 700,000 in the future.

This higher TPS makes Solana faster than the traditional payment giants Visa and MasterCard. In addition, users pay a fraction of the cost of using the Ethereum network for just $ 0.01 per transaction.

This has resulted in many Ethereum-based protocols being migrated to the Solana blockchain, with PowerLedger and Neon Labs being the latest examples.

Solana’s expanding ecosystem

Solana is not here for a short time. According to its CEO, Solana aims to revolutionize how everyone interacts with the blockchain space. Solana wants to make it possible for everyone to use DeFi without the need for a technical qualification.

To this end, the blockchain platform was integrated into a third generation crypto exchange to launch a decentralized exchange platform (DEX) called Soldex.

According to a press release, the new DEX platform will include a unique combination of blockchain and artificial intelligence (AI) technologies to create automated and decentralized products.

Soldex is intended to drive the new generation of flexible financial markets as it will serve as the basis for settlement, custody, market making and liquidity.

Additionally, the Solana blockchain has more than 200 dApps currently building on its platform, including Nova Finance, Symmetry, Solaris, and a few others they call home.

SOL: Breaking over the bearish wave

The crypto market is generally tied to the price movement of the world’s oldest cryptocurrency, Bitcoin. An uptrend for BTC price action would usually result in the bulls being the focus and vice versa.

This forced affiliation has resulted in several small-cap cryptocurrencies like SOL losing their value when Bitcoin enters a bearish trend.

At press time, the SOL token is trading at $ 30.538 and is up 8.75% on the daily chart. This rally resulted in several investors looking to buy SOL.

In the meantime, SOL has seen better days than today. With a price of $ 1.851 into 2021, SOL rose to an all-time high (ATH) of $ 55.91 on May 18.

However, due to the beginning two-month market crash in May, it was unable to maintain this price movement. It has since fallen to $ 23.49 and today’s rally is up 5%.

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SOL technical and fundamental analysis

The SOL token looks promising on the trading chart. With a peg of $ 30.583, it is in bullish territory as it trades above the 20-day moving average (MA) of $ 28.269. Its Relative Strength Index (RSI) is 52.50.

This shows that it is trading below the overbought level and is a great opportunity to buy SOL.

So far, the Solana blockchain is taking strategic steps to expand its customer base. According to a report, the Dapps platform is starting a hackathon in India. The three-week event aims to strengthen blockchain engagement and then give developers in the country an incentive to build on the Solana network.

Namasté India! ?

We’re incredibly excited to announce #BuildingOutLoud – a hackathon exclusively for Indian developers and entrepreneurs.

– Solana India (@solana_india) July 27, 2021

Another is that Coinbase sponsored blockchain company Bison Trails rolled out its Query & Transact node infrastructure on the Solana network.

According to the development team, the tool will help developers access and review transaction data, write transactions, and build apps and services to extend the Solana blockchain.

About Jimmy Aki PRO INVESTOR

Jimmy is a UK-based economist with outstanding hands-on and face-to-face experience in macroeconomic financial analysis, forecasting and planning. He has refined his skills through a cross-continental activity as a financial analyst, which gives him intercultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him to peek under the global hood to see how the world works.

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