Why Solana Has Doubled In The Last Month
Since October, Solana’s price has doubled to $46. Its total worth now stands at $19.6 billion.
SOL is now the fifth-largest coin by capitalization and the third-largest in daily volume, just behind Bitcoin and Ethereum.
Solana is attracting significant funds from institutional investors, leading altcoins in crypto fund investments.
In the past year, $98 million flowed into Solana funds, while $125 million was withdrawn from Ethereum funds.
In our “Institutional Investors Prefer Solana” article, we highlighted key partnerships with Shopify and VISA. They choose Solana for its fast and cheap transactions.
The average transaction fees across different projects:
The investment firm VanEck, managing a portfolio of $76 billion, has also recognized the advantages of Solana in an October report. They believe that Solana has a better chance than other blockchains to host the “next killer application” with over 100 million active users.
VanEck’s projections suggest that Solana’s price could reach $335 in their base-case scenario and surge to $3,211 in a bullish one by the year 2030.
Furthermore, the upcoming validator client Firedancer, set for deployment in the first half of 2024, is anticipated to provide a significant edge over its competitors.
Solana’s founder, Anatoly Yakovenko, expects this update to reduce network failures. In the past year, these failures occurred about once every two months, with a 19-hour outage in February 2023.
However, Solana also faces challenges:
1. The sale of $2 billion worth of SOL tokens from the accounts of the bankrupt FTX has begun. The liquidator plans to sell $100 million per month.
2. VanEck acknowledges the potential for future critical bugs due to Solana’s complex architecture, even with the implementation of Firedancer.
Disclaimer:
Cryptocurrencies involve complexity and carry a high risk of rapid monetary loss due to volatility and changing regulatory landscape. It’s crucial to ensure you understand how cryptocurrencies operate and can withstand the potential high-risk scenario of losing your assets.
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