Solana: How Ethereum’s Competitor Is Gaining Steam

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It’s impossible not to pay attention to cryptocurrencies. It seems like every day, there’s a new “token” or “coin” we’re all hearing about. Some of them are fads that quickly rise in popularity and then crash, while others are more stable. Solana, for example, is a cryptocurrency that’s rising in the ranks. In fact, it’s currently number nine in the crypto world in terms of volume. Solana is most notable for its likeness to Ethereum (ETH), but functions faster and costs less. Let’s learn a bit more about Solana so you can decide whether or not it’s a good investment for your wallet.

What Is Solana?

Officially launched in 2020 and ​​founded by Anatoly Yakovenko, Solana is a decentralized blockchain represented by the “token” SOL. The Solana ecosystem is designed to enable user-friendly apps. It’s already considered the fastest blockchain in the world, spanning across tons of DeFi (deregulated finance) applications and NFTs (non-fungible tokens). Solana claims to be able to support 50,000 transactions per second without sacrificing decentralization.

It’s also important to note that Solana is poised to become one of the largest Ethereum competitors since both blockchains function very similarly. Because of its faster transaction speeds, it may very well overtake Ethereum in the future.

Solana can process 50,000 transactions per second, compared to just 15 per second compared with Ethereum. Because Solana is so fast, developers hope that the blockchain will eventually scale and compete with centralized payment processors like Visa or Mastercard.

There are a lot of technical terms so it’s important to understand the meaning of the following:

  • Centralized: Issued by or regulated by a central bank, government, or other authority.
  • Decentralized: Not issued or regulated by any central bank, government, or other authority.
  • Blockchain: The technology behind cryptocurrencies; a chain of “blocks” containing a digital record. When each block is “full,” a new block is created and added to the chain, which cannot be changed or edited.
  • DeFi: Decentralized Finance; emerging financial technology based on “secure distributed ledgers,” similar to those used by cryptocurrencies. The system removes banks and institutions’ control of money, financial products, and financial services.
  • NFTs: Non-fungible tokens, a term used to describe the digital assets representing physical items that aren’t interchangeable for other things because they have unique properties.

Here are some notable stats about SOL:

  • Symbol: SOL
  • Current Supply: 322.6M
  • All-Time High: $260.06

How Much Does Solana Cost?

As of March 2022, the cost of one Solana hovers at around $87 per coin, according to CoinMarketCap.

To provide some further insight, SOL was valued at around $15 per coin in March 2021, just one year ago. That’s roughly a 480% increase (or roughly a 5X increase) in just one year.

Unlike the already higher price of Ethereum, Solana is at a much lower price point, for now. Financial institutions and experts predict Solana’s value could be as high as $5,000 per coin by 2030 so it’s up to you if you want to get in on it now before its price goes up even more!

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Where Do I Buy Solana?

Coinbase & Gemini Wallets with ETH | Adam Palasciano

Solana can be bought and sold on cryptocurrency exchanges like Coinbase or Gemini. Check out the table below, which highlights the two platforms:

PlatformFoundedBest Reasons To Sign Up
Coinbase2012One of the largest cryptocurrency exchanges in the world. You'll get access to a wide variety of both common and uncommon cryptocurrencies.
Gemini2014The world's first licensed Ether (Ethereum) exchange. Start investing with as little as $5 and earn interest on certain cryptos.

Solana Summed Up

In short: Solana (SOL) is a DeFi blockchain represented by the “token” SOL. While similar to Ethereum, it functions much faster and allows for more transactions per second. And while still a smaller network than Ethereum, Solana claims to be able to support 50,000 transactions per second without sacrificing decentralization. It’s not a cryptocurrency to be overlooked and could very well be a very lucrative investment opportunity.

The Bottom Line

My thoughts?* Solana is certainly a cryptocurrency to pay more attention to. It’s important to consider your portfolio and investment goals BEFORE deciding to invest in cryptocurrency. If you’re serious about crypto, it’s recommended not to invest more than 5% of your assets. If you’re just starting out and you’re not as experienced with cryptos, no more than 1-2% of your assets is recommended.

The cryptocurrency landscape continues to evolve and still remains very volatile. On some days, the crypto market can lose as much as 20 percent in one day and then gain 30 percent back a week later! While investing in cryptocurrency comes with a higher level of risk than traditional investments, it also comes with higher rewards too!

*This is not an investment recommendation. This information is for informational purposes only. Investing always involves risk.

Read More: What is Ethereum? How To Get In On The Crypto Craze