Why Solana Network Increasingly Popular?
Today cryptocurrencies have eliminated the intermediaries of financial services with the use of peer-to-peer transactions. However, popular cryptocurrencies like Bitcoin and Ethereum have scalability limitations. Solana has emerged as an effective solution to overcome such a problem.
Despite Solana’s decentralization and outage issues, it remains a popular cryptocurrency platform and mainstream blockchain network for the crypto community.
It has recorded growth in the number of active developers and market capitalization, ranking in the top 10 cryptocurrencies globally. With a circulating supply of around 366 million SOL, it’s market cap is around $5 billion.
Solana is also planning to launch her own Saga mobile phone line. The Saga phones will feature the Android operating system with built-in Web3 capabilities. Yakovenko confirmed that Solana wants to turn the Saga phone into a central hub for digital asset management and trading. These phones are expected to feature 12GB RAM, 512GB internal storage, and the latest 8+ Gen 1 processors from Snapdragon with additional security features dedicated to cryptocurrency services and transactions. This network is supposed to release Saga in Q4 2022 (this article was written in September 2022).
Investors want alternatives to Ethereum
As the first programmable blockchain, Ethereum can host other applications and cryptocurrencies. Currently, several other cryptocurrencies have followed in its footsteps. While Ethereum continues to be useful in most applications, the network is experiencing high fees in part due to congestion. Therefore, both investors and developers are looking for new opportunities.
Since Solana is also a programmable blockchain with the potential to support more applications, it is currently competing with Ethereum for the first place.
Many experts and investors still consider Solana an Ethereum killer, but it is unlikely that Ethereum will lose credibility in the next few years. If the Solana continues to perform well, it will most likely earn its place among the top guns.
Fast transaction speed
With the ability to process at least 50,000 TPS under $0.01 per transaction, Solana is currently one of the fastest cryptocurrencies on the market. Solana is one of the few cryptocurrencies that have a relatively low price tag with Visa’s payment method. The platform claims that it can process payments faster as technology advances, which can reach up to 700,000 TPS.
In contrast, Ethereum currently handles 15 to 45 TPS, but this will increase as developers complete the upgrade to Eth2.
While speed isn’t everything, it has proven to be a roadblock for many burgeoning cryptocurrencies. It’s only a matter of time before we can tell if Solana is correct in claiming that it has gained speed without compromising on security or other factors. If this is the case, this network could maintain her place in the top ten cryptocurrencies for a while.
Solana has a promising “decentralized finance” future
One of the key factors driving the price and popularity of Solana up is its promising future in the field of decentralized finance (DeFi). Solana has prioritized smart contracts, just like Ethereum did. Smart contracts run on the blockchain when certain conditions are met without the assistance of any third parties or financial intermediaries.
Solana outperforms its close competitor, ether, in price and speed. While Ethereum clocks in under 10000 TPS, Solana boasts 50,000 TPS and does so with incredibly cheap transaction fees.
Solana has made great contributions to NFT
Another reason for SOL’s rapid rise is its entry into non-fungible tokens (NFTs). Additionally, last month saw the launch of the “Academy of Degenerative Apes,” which is an NFT on Solana’s network.
NFT became so successful that they sold about 10,000 cartoon monkey pictures in the first ten minutes of its launch. The price of SOL skyrocketed because customers requested SOL tokens to buy cartoon paintings.
NFT allows artists and content creators to monetize their art. Artists can now sell their crafts directly to customers instead of relying on auction houses and galleries. NFT also allows artists to program royalties for them to receive a percentage of each time the owner sells the artwork.
The NFT market became famous when Beeple sold his digital artwork at a Christie’s auction for $69.3 million. NFT advocates certainly highlight the success of SOL as a significant incentive to invest. Solana has a massively growing ecosystem, supporting a number of projects that have reaped the benefits of the NFT craze.
Solana aims to compete with mainstream blockchains like ETH and claims to be the fastest, cheapest, and most efficient blockchain network available today, despite its flaws. Users as well as experts are concerned about Solana’s stability due to its downtime issues and complete lack of decentralization. However, this is still considered a complete ecosystem and is likely to thrive in the future.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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