Solana’s popularity among institutional investors will contribute to its growth in December
Although many cryptocurrencies recorded mind-blowing performances in 2021, not all of them managed to steal the stage as Solana did. Launched in 2020, SOL has emerged as a so-called ‘Ethereum Killer’ just months after its inception. However, its 16,000% surge since the beginning of 2021 is what left investors in awe. After gaining its name among Defi, NFT, and gaming sectors and more institutional investors, Solana price is all set to go after its next resistance, US$300.
Solana is an open-source blockchain platform that specializes in smart contract functionality and also hosts decentralized applications (DApps). Solana’s price was at US$1.51 at the beginning of the year with a total market capitalization of US$86 million. Over the year, its value has drastically surged, placing SOL’s price at US$260 and market capitalization at US$70 million. After hitting a record high in November, Solana has emerged as the fifth-largest cryptocurrency. However, various factors are contributing to this growth. One of the reasons is crypto investors’ search for a true ‘Ethereum Killer’. Although Ethereum 2.0 is all set to hit the market in 2022 with a less energy-consuming model and better transaction speed, Solana has already attracted many ETHER lovers. Besides, SOL can process around 50,000 transactions per second while Ethereum can do 15 to 45 TPS. The biggest advantage of Solana is its Proof of History (PoH) and Proof of Stake (PoS) system that records and processes transactions very quickly. With all this said, we explore if Solana price can breach the US$300 mark before the end of 2021.
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Grayscale Solana Trust, a Big Sweep for Investors
On the first day of December, Solana’s price surged by 9%, thanks to Grayscale Solana Trust announcement. Grayscale Investment, the leading digital asset manager in the market, announced the launch of Grayscale Solana Trust, which will offer investors a new way to gain exposure to the digital token.
Already, investors who are interested in smart contracts are flocking to Solana after the realization that the platform is providing much cheaper services. With Grayscale Solana Trust opening a new venture for investors with less risk, the cryptocurrency price is expected to go up further.
‘Less Energy Consumption’ of Solana
Cryptocurrency investors are already aware that Solana consumes very little energy compared to its counterparts. But how much does the ‘less’ count for was recently explained by the platform. As per its latest Energy Use Report, Solana claimed that SOL transactions consume lesser energy than two Google searches. Approximately, two Google searches swallow 2,160 Joules of power while Solana only consumes 1,837 Joules.
This energy consumption report could be a massive booster for Solana as the world is looking for a greener future. While bitcoin transactions cost 6,995,592,000 Joules of energy and Ethereum, 692,820,000 Joules, Solana’s less than 2,000 seems impressive.
Solana is Gearing Up its Gaming Presence
At the beginning of November, Solana has announced its participation in a new US$100 million fund to boost blockchain gaming. After the announcement, Solana price went up by 17%, placing the cryptocurrency at the fourth spot in the top 10 list. Since the beginning of November, SOL has managed to continue on an upward trajectory. Although the US$526 million market value gap between Solana and Ethereum is huge, the altcoin has the potential to flip ETHER if it continues the ‘to the moon’ path in 2022.
Can Solana Breach US$300 Resistance Before 2022?
At the time of writing, Solana’s price was US$223.87. But before debating on the US$300 mark, its major task would be to reclaim its November record high of US$260. Towards the end of November, the cryptocurrency’s volume cane down to as low as 1.4 billion. Fortunately, it has gone up to three-fold in the next few days. Although everything seems positive for Solana to breach any value in the coming days, it should maintain and hold above US$220 to continue the bullish momentum. This stability will help the crypto gain value before 2022. However, it is not clear whether SOL could breach the US$300 mark before 2022 but it has the potential to do so next year.
