Solana Price Analysis : Shorting Time?

Share IT

Solana (SOL) is a blockchain platform that aims to provide fast, scalable, and low-cost solutions for decentralized applications (DApps) and smart contracts.

In this article, we will look at the next price direction of solana and the origin, profitability, and price journey of Solana, as well as its future outlook.

Solana Price Prediction

Sol is currently trading at $22.61 with a 24h volume of $342.8mn. The market cap stands at $9.2bn and the circulating supply is 405.7mn tokens. Let’s have a look at the chart for trend analysis:

Solana Price Analysis : Shorting Time?

Weak price action towards LONG

Getting rejected from the Resistance level, open up short once retested below the support level.

Origin

Solana was created in 2017 by Anatoly Yakovenko, a former engineer at Qualcomm and Dropbox. He invented a new consensus mechanism called Proof-of-History (PoH), which uses timestamps to verify the sequence and duration of events on the blockchain. This enables Solana to achieve high speed and low latency without compromising security or decentralization.

Solana also uses Proof-of-Stake (PoS), the common consensus mechanism that rewards validators for staking their tokens to protect the network. Solana’s version of PoS is called Delegated Proof-of-Stake (DPoS), which allows token holders to delegate their stake to validators of their preference and share the rewards.

Solana launched its mainnet beta in March 2020, and its native token SOL was listed on several major exchanges soon after. Since then, Solana has gained a lot of attention from developers, investors, and users, who see it as a viable competitor to Ethereum, the leading platform for DApps and smart contracts.

Profitability

Solana’s profitability is also reflected by its growing adoption and development. Solana hosts over 400 projects on its platform, covering various domains such as DeFi protocols, NFT marketplaces, and gaming platforms. Some of the notable projects include Serum, a decentralized exchange co-founded by FTX CEO Sam Bankman-Fried; Audius, a decentralized music streaming service with over 6 million users; and Metaplex, a platform for creating and selling NFTs.

Solana’s profitability is also driven by its innovation potential. Solana is constantly improving its technology and features, such as introducing a new validator client, launching a mobile stack and device for DApps, and supporting cross-chain interoperability with other blockchains. Solana also has a strong community and network effect, with over 1,000 validators, over 600,000 followers on Twitter, and over $3 billion locked in its DeFi protocols.

Price Journey

Solana’s price journey has been remarkable since its inception. Solana started trading at around $0.5 in April 2020 and gradually increased to around $2 by the end of the year. In 2021, Solana experienced a massive surge in price, reaching over $20 in February, over $40 in April, and over $50 in May. This was fueled by several factors, such as the rising demand for scalable and low-cost DApps, the growing interest in NFTs and DeFi, the endorsement from influential figures like Bankman-Fried and Mark Cuban, and the overall bullish sentiment in the crypto market.

However, Solana also faced some challenges and setbacks along the way. In June 2021, Solana suffered a network outage that lasted for six hours due to a bug that caused excessive memory consumption. In August 2022, Solana was hit by a class action lawsuit that accused it of selling unregistered securities tokens. In September 2022, Solana experienced another network outage that lasted for 17 hours due to a denial-of-service attack that overwhelmed its transaction queue.

Despite these difficulties, Solana managed to recover and resume its growth trajectory. In October 2022, Solana raised $314 million in a private token sale led by Andreessen Horowitz and Polychain Capital. In November 2022, Solana partnered with Google Cloud to offer cloud computing services for its developers. In December 2022, Solana launched Wormhole, a bridge that connects it with Ethereum, Binance Smart Chain, Terra, and Polygon. In January 2023, Solana reached a new all-time high of $58.30 amid the crypto market rally.

Conclusion

Solana is one of the most innovative and promising blockchain platforms in the crypto space, offering fast, scalable, and low-cost solutions for DApps and smart contracts. Solana has shown impressive profitability and growth, as well as resilience and recovery, in its price journey.

Solana has a bright future ahead as it continues to expand its adoption, development, and innovation. Solana is definitely a contender for the title of the Ethereum killer and a worthy investment for crypto enthusiasts.

For on-demand analysis of any cryptocurrency, join our Telegram channel.

Share IT
Harsh Panghal
Harsh Panghal

Can’t find what you’re looking for? Type below and hit enter!