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Solana: The Ethereum Killer with Unique Advantages
Solana is a blockchain similar to Ethereum, often called an “Ethereum killer.” You can buy the SOL token on major exchanges, and it has value for making transactions on the Solana network, which has its own advantages.
Solana’s blockchain decides the next block by proof of history. This is done using timestamps.
Bitcoin and Litecoin used a different method called proof-of-work in the past. Miners decided on the next block, but it was slow and energy-intensive. With proof-of-stake, Ethereum uses 99.9% less energy.
The next block is decided by validators reaching an agreement based on the staked tokens. Compared to proof-of-work, it’s more energy-efficient.
Solana’s Remarkable Fusion: Proof of History and Delegated Proof of Stake
In contrast to Ethereum and Cardano (ADA), Solana uses a unique combination of proof of history and delegated proof of stake. Solana’s unique approach lets it process transactions faster and at a lower cost than its competitors.
Solana’s proof of history defines blocks as timestamps instead of miners or staked tokens. Validators on the blockchain can vote on the timestamps of different blocks, ensuring decentralization while making computations faster and more secure.
Exploring Solana’s Winning Combination: Proof-of-History and Delegated Proof-of-Stake
Solana uses two protocols: proof-of-history and delegated proof-of-stake.
This combination makes transactions go faster. Routledge explains that processing transactions quickly usually requires centralization, like how Visa uses a huge network of computers. Bitcoin, on the other hand, processes transactions slowly.
Like Bitcoin, Solana wants to process transactions quickly. Scalability and monetary and environmental savings come from this speed.
In Solana, each block in the blockchain is timestamped to ensure security.
Solana’s SOL tokens are staked and used as collateral for transactions on the network. Some of these transactions are validating smart contracts and participating in the Solana non-fungible token (NFT) marketplace.
In August 2021, Degenerate Ape Academy became a major NFT project on the Solana marketplace. Solana’s token, SOL, went from $30 to $75.
During a period of high cryptocurrency market activity, Solana peaked at nearly $260 in November 2021.
Trading SOL Tokens: Exploring Platforms and ATMs for Cryptocurrency Enthusiasts
Like other major cryptocurrencies, SOL tokens can be traded on platforms like Coinbase, Kraken, and Binance. The US. Even some cities have crypto and NFT ATMs where you can get SOL tokens.
SOL tokens should be stored in a crypto wallet once they’re purchased. Crypto wallets don’t hold bitcoins but store the keys to access them. Wallets can be online or offline, but offline (cold) wallets are the most secure.
Besides peer-to-peer payments, SOL tokens can be traded and used to secure the Solana network.
You should search before investing in Solana SOL or any other cryptocurrency.
Solana (SOL) Stats:
- SOL price now – $16.71
- SOL market cap – $7 Billion
- SOL circulating supply – $399,923,348.56 SOL
- SOL total supply – $551,008,422.06 SOL
- SOL Coinmarketcap ranking – 10
Data shows on Coinmarketcap.
SOL Price History: From Peaks to Valleys
The price history of the SOL token has shown significant fluctuations. On May 26, 2022, it dropped from $47.98 to $43.49 to $40.98 on May 27. This decline was influenced by the collapse of Terra UST and LUNA tokens and the US Dollar Index reaching a 20-year high.
In June, SOL hit a low of $26.06 but rallied to $47.10 in July, unable to reach $50 and eventually dropping to $42.40. On November 9, the price plummeted to $12.51, far from its all-time high of $260.06. It briefly reached $18.81 on November 10 but dropped to a low of $15.51 on November 11 following the FTX bankruptcy announcement.
Throughout December, SOL traded between $11 and $15 before reaching a low of $8.14 on December 29. However, positive sentiments from Ethereum’s founder and interest in Solana-based BONK led to a recovery, with the price reaching $17.36 on January 9 and settling around $16.10 on January 12.
On January 14, SOL broke past $20 for the first time since November and peaked at $26.65 on January 29. It remained around $24.50 on February 3.
In February, the news of Helium (HNT) migrating to Solana boosted the price to $26.93 on February 20. In March, SOL dropped to a low of $16.12 on March 10 due to the collapse of Silvergate Bank, but recovered to $23.83 on March 20. By April 6, it was trading around $20.70, despite surpassing Ethereum in active wallets.
However, on April 11, SOL experienced a 10% surge, opening at $20.88 and closing at $23.02. It peaked at $25.46 on April 14 before slightly declining to around $24.85 on April 17.
Will SOL Break Above $18.73 Level?
Looking at the daily chart, if the price of SOL moves higher within its trading range, it might reach a resistance level of around $18.73. When this happens, buyers will likely support the price and help it rise even more, potentially resulting in more gains for SOL.
On the flip side, there is a chance that the price of SOL could quickly drop or experience a sell-off if it reaches a crucial support level of around $14.47. However, if the price doesn’t reach that support level, traders might see SOL breaking above the upper limit of its trading range and continuing its upward movement.
If the bullish trend of Solana (SOL) continues, it might face resistance at $26.89, $22.27, and $18.73. On the other hand, if the market price falls below the trading range, SOL/USD could find support at levels of $14.47, $12.13, and $9.19.
SOL/USD Medium-term (4H Chart)
Based on the 4-hour chart, traders are optimistic that the coin will regain its previous momentum. They hope it will break above the upper limit of its current trading range and once again gain the momentum it had before.
On the other hand, if a lot of selling happens and the coin struggles to continue going up, its price may drop to $14.47 or even lower.
If buyers keep prices above the 7-day and 14-day moving averages, traders can expect significant upward movement beyond the trading range. This could lead to the price reaching a resistance level of $18.73 or even higher.
As a result, the market price is likely to increase in the near future.
$ECOTERRA: A Promising Outlook for 2023 with 100x Growth Potential
Ecoterra, an eco-friendly crypto project, is gaining momentum and support. In addition to promoting recycling and carbon offsetting, the project aims to build a web3 ecosystem. ECOTERRA’s presale exceeded $2.761 million, indicating enthusiasm for the project.
As a result of blockchain technology, recycling is incentivized, and environmental impact is transparently tracked. Holders of $ECOTERRA enjoy privileges and can earn passive income through staking.
By 2023, experts predict a 100x increase in gains. Among Ecoterra’s positive outlooks are widespread adoption and substantial value growth.
Read more:
- Ethereum Price Prediction: ETH/USD Jeopardizes Key Support as the Price Drops Below $200
- Litecoin Price Analysis – LTC Bears Dominate Momentum, Pushing Price Towards Next Support
- Bitcoin Price Prediction: BTC/USD Nosedives Below $17,000; Price May Return Back to Red Zone
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