Solana has been showing its strengths in the last months: SOL’s price has grown more than 7x since mid-summer. But to find out whether Solana has potential as a long-term investment, you might want to take a look not only at its past, but at its future, too. SOL’s price predictions, which we gathered in this article, can help you find out if it’s worth it for yourself.
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Solana Fundamental Analysis
Solana (SOL) is a token powering the Solana network — a Layer 1 blockchain for dApp developers. Solana Foundation has existed since 2017, but the network itself was launched in 2020, with the mainnet beta going live in March 2021.
Solana aims to solve the blockchain trilemma, providing scalability, security and decentralization. To achieve this, Solana’s founders developed a unique consensus protocol called Proof-of-History (PoH), which synchronizes the network nodes and ensures the immutability of timestamps within the chain. It works much faster than other mechanisms serving similar purposes. Solana also employs Proof-of-Stake (PoS) protocol as an additional security measure, which together with the high speed of PoH effectively solves all three parts of the trilemma. Note that, unlike the more common Layer 2 solutions for the same problem like sharding or sidechains, Solana operates on an autonomous blockchain and is not dependent on other chains like Ethereum. All these technological innovations have enabled Solana to maintain very high transaction speeds and some of the lowest fees in crypto space after its mainnet launch (i.e. despite increasing usage).
Validators have to stake their Solana tokens (SOL) to secure the network, and they receive their rewards in the same currency. The tokens are also used as gas fees and in the network’s governance.
Solana Live Price Chart
Solana tokens entered the market in April 2020 at a relatively low price, trading below $1 until late July of that year. As Solana attracted attention, SOL's crypto price climbed up, especially after the crypto derivatives exchange FTX announced its plan to develop their new project, Serum, on Solana. As a result of this, in August Solana’s price reached $4.78. By the fall it went back down again, but not as low as before, mostly staying around $2 until the end of the year. At the beginning of 2021, Solana’s price started to grow, following the general market trend at the time, and hit $17.3 in late February. After the public sale auction and mainnet launch in March 2021, however, the price truly surged, reaching $28.51 in April. It soared even higher in May, going to an all-time high of $58.30. Later, as the crypto market crashed, Solana’s price fell too, although, notably, it bounced up several times even in those market conditions, breaking $35 and even $40 several times during summer 2021. In any case, even during the latest dips, the lowest it has gone is $22.18, which is a far cry from Solana’s humble beginnings. This may signal a strong public interest in the project.
Solana Technical Analysis
Solana Price Prediction
#1. WalletInvestor SOL Price Prediction for 2021, 2023, 2025
#2. TradingBeasts SOL Price Prediction for 2022
#3. DigitalCoin SOL Price Forecast for 2021, 2022, 2023, 2025
#4. LongForecast SOL Price prediction for 2021-2022
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