Solana is quickly attracting more developers and gaining widespread adoption. Since the start of the year, Solana has increased its value by 15,000%. Its high performance even surpassed popular coins such as Ethereum and Bitcoin, whose prices rose by over 500% and 95%, respectively. The fast growing cryptocurrency also outperformed Cardona by taking the fifth position on the top cryptocurrencies in the world. Solana has a market value of about $73 Billion and is a single token currently trading under $240. With all its potential and considering the rapid growth of the crypto industry, could Solana reach $1000? Let’s find out.
Solana outstanding performance
Solana is a leading blockchain providing users with decentralized finance (DeFi) solutions. It is similar to Ethereum blockchain in so many ways. The smart contract blockchain is conveniently designed to allow developers to create decentralized applications (DApps) on the platform. It is currently hosting over 400 end-user applications, including non-fungible tokens (NFT, decentralized finance (DeFi) and gaming projects.
In terms of speed, scalability and cost of transaction fees, Solana is superior to its larger competitor, Ethereum. For instance, Solana allows 50000 transactions per second as opposed to 15-45 transactions per second on the Ethereum blockchain. Further, it only takes 0.4 seconds to complete a transaction on the Solana platform with under $1 transaction fee, while on Ethereum, a transaction takes 11 seconds with a transaction fee of above $15. Therefore, Solana is a faster and cheaper cryptocurrency.
However, new updates on the Ethereum platform are in progress and Ethereum 2.0 will fully roll out by next year. The new developments will lower the gas fees and increase transaction speed. If Ethereum is successful on the project, Solana could lose its competitive edge. It’s uncertain when exactly the new updates will be complete and there could be challenges along the way.
Fortunately, Solana is a user-friendly and affordable option to Ethereum, especially for non-fungible tokens projects. Ethereum is still the largest player in NFT in the marketplace. However, the Ethereum blockchain has high congestion, making transactions slower and rising gas fees. Due to this, users find it challenging to buy and sell non-fungible tokens. Solana platform is more efficient for the NFT marketplace than Ethereum.
Will Solana continue to grow?
Solana prices have surged forward since its creation. More users in the world have adopted it and developers are still working on DApss on top of the blockchain. Significantly, Solana will continue gaining and assuming an upward path, according to industry experts. However, will Solana reach $1000?
Whether Solana gets to $1000 could be anyone’s speculation. Price prediction is highly speculative given the volatility of the crypto market. Although crypto investors keep rooting for the success of a particular cryptocurrency, it is difficult to tell what direction it will take in the future. Besides, Solana user base is not large enough to allow experts to forecast future token prices. Before investing in Solana, you will have to consider its benefits and downsides compared to those of its competitors and gauge if SOL is a wise investment in the long term.
Debatably, Solana has superiority over other cryptocurrencies and these factors could help its price increase. For instance, Solana leverages sharding technology to allow users to process all sizes of transactions. In addition, unlimited applications can be built on the blockchain. Further, the Solana blockchain is energy efficient, making it a better option for sustainable cryptocurrency.
Even so, Solana is not without its downside. One of the biggest disadvantages is the lack of a stronger name reputation or track records like Bitcoin or Ethereum. Its market cap of $73 Billion is way too far below it Bitcoin and Ethereum, whose market capitalization is $1 Trillion and $538 Billion, respectively. Solana will have to increase its price 25 times to trade fairly with its competitors. If Solana reaches its potential market cap getting to $1000 is highly possible.
Solana has to watch out to ensure it maintains its competitive edge. For instance, if the Ethereum 2.0 update is successful, congestion will be significantly reduced. As a result, gas fees and slow transaction problems will be solved. Thus, it must keep its platform user-friendly and appeal to more investors. New cryptocurrencies in the market could prevent Solana from reaching $1000 in the next few years. New coins often emerge on the market and each tries to solve the current problems users are experiencing. If new cryptocurrencies outshined Solana, it would be difficult for prices to rise.
Conclusion
Solana is a growing cryptocurrency with superior technology and an ecosystem of applications. Its growth path is still uncertain, seeing that it is still new in the market. However, it has promising features that will enable it to remain sustainable in the long run. It will eventually get to $1000 and become one of the most valuable cryptocurrencies in the market, no matter how long it takes.
