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In the digital world, people are becoming very familiar with Bitcoin and Ethereum. Some of you might've also heard about Dogecoin and Shiba Inu, which have created a dog fight recently. But do you know about Solana, an amazing cryptocurrency that has recorded over 17,500% growth in 2021 alone? Surprising right! Yes, SOL has made remarkable growth in the past year and is expected to follow the same trend in 2022. According to experts, Solana's price might touch the US$1000 mark if it follows certain criteria.
Although less known, Solana is one of the fastest-growing cryptocurrencies in the market in 2021 and 2022. While famous digital tokens like Bitcoin and Ethereum recorded 95% and 500% growth respectively, Solana's price hit the roof. At the time of writing, Solana is positioned as the top seventh cryptocurrency with a market capitalization of US$43.78 billion. It is being traded for US$138.41. Over the past few years since its inception, SOL has positioned itself as a direct competitor of Ethereum. Both SOL and Ethereum have grown way out of being just a coin. They have impressed the coder communities and made them create futuristic applications like smart contracts and NFTs on the platform. Compared to other digital tokens, Solana is relatively young. Although it was created in 2017, the cryptocurrency made its debut in 2020. However, its performance surged drastically since SOL was brought to light. Currently, the cryptocurrency is heading to an even intense resistance level of US$1000. In this article, we explore what will help Solana's price reach massive highs in 2022.
Cardano and Solana, both are called the top 'Ethereum Killers' for their potential to take over the top second cryptocurrency. Solana was created by Anatoly Yakovenko, a former engineer at Qualcomm (QCOM), along with his colleague Greg Fitzgerald. Since the Solana platform directly challenges the Ethereum network, it has positioned the SOL coin at the forefront of every mechanism. Already, high transaction fees and network congestion have made users look for an alternative, and fortunately, SOL has emerged as one.
According to data from the research firm, Santiment, The number of developers engaging on the Solana platform has climbed drastically, and also surpassed that of Ethereum. While Solana can make 2,500 transactions in a second, Ethereum can only do 15. However, the platform is also engaging in an update that will position Solana at an even intense spot by doing 50,000 transactions in real-time. Its combination of Proof of History (PoH) and Proof of Stake (PoS) algorithm is also adding power to the network.
A number of factors are expected to contribute to Solana's price hike. Some of them are listed as follows.
The Mechanism Within: The core motto of Solana is to mend the gap between fiat and digital currencies. To effectively do so, the platform is implying futuristic technologies like distributed identity systems, distributed data exchange, and collaboration and distribution procedure protocols. This versatile ecosystem paves the way for new opportunities to restricted and specific industries. Besides, its outstanding community stands as an icon for many developers, token holders, validators, and members supporting the protocol. As a craft from experts and developers, SOL tokens are more reliable compared to other cryptocurrencies.
Smart Contracts as the Center: The digital tokens have gone far beyond just serving their basic purpose. Today, many cryptocurrency platforms have extraordinary features that place them above Bitcoin and Etheruem. Similarly, Solana's price is also triggered by the futuristic use case called 'smart contracts'. Users can set up smart contracts, automatically issue payments, and share data for a set time in the SOL network.
The Community Attraction: Many instances in the cryptocurrency sphere were triggered by social media platforms like Twitter and Reddit. However, they are often ignored in congested spaces. Even recently, the Dogecoin price rally was solely contributed by subreddits that drove the memecoin to the top. Similarly, Solana is also developing a community of supporters who can contribute to the growth in the coming years. They will encourage the members to use and adopt blockchain by pressing the importance of the token.
Alike many other tokens, Solana also lost its value in the recent bear run. Currently, it is maintaining a moderate stand in the cryptocurrency market. According to predictions, Solana's price will go down to US$130 in the coming weeks and will take a flip there. Therefore, we can expect a price rally, which will trigger SOL's value up to 5 times what is now. Roughly, Solana's price will reach US$300 in Q1 2022, which will eventually go up to US$300 before the end of the year. Meanwhile, if Solana gets a trigger, then its value will easily touch the US$1000 mark in 2022.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
