Solana – the World’s 8th Largest Cryptocurrency
Most people have heard of Bitcoin and Ethereum, the two largest cryptocurrencies with market caps of more than $896 billion and more than $414 billion, respectively, according to CoinMarketCap. In the realm of altcoins, one name stands out: Dogecoin, promoted by billionaire Elon Musk.
According to Forbes, another altcoin, Solana has lately risen to become the world’s eighth-largest cryptocurrency. According to Forbes, Solana rose 10% on Monday and 30% on Tuesday, bringing its price to about $130 per coin and increasing its market cap close to $40 billion. According to CoinMarketCap statistics, Solana has slipped back down to $111 by Tuesday evening, which is still near its all-time high and a sharp contrast to its mid-June price, which was in the mid-$30s.
According to Fast Company, the coin has increased by 275 percent since August 1 and by more than 2,348% since the start of the year. The cryptocurrency was only founded 18 months ago.
What Exactly Is Solana?
Solana is a programmable blockchain, comparable to Ethereum, that can support a variety of decentralized financial operations. Unlike Bitcoin, which is a non-programmable blockchain, Solana and Ethereum support smart contracts, which can be programmed to complete transactions only when certain criteria are met. The decentralized blockchain network, as a programmable system, allows users to swap not only SOL coins but also non-fungible tokens and other digital assets.
What Caused Solana’s Ascent?
The quick rise of NFTs, including Visa’s investment in digital artwork last week and celebrity collectors’ great interest in NFTs, may have contributed to Solana’s rapid growth.
Also, according to Forbes, Solana began a “global Solana hackathon” on Sept 1st, which will continue until Oct. 8. The program encourages technology innovators to design and build blockchain-based games, art and collectibles, and decentralized financing services on the Solana blockchain.
Should You Put Your Money Into Solana, Ethereum, or Bitcoin?
Although Solana is considered a direct competitor to the Ethereum blockchain, Solana and other altcoins may be funneling market share and investment dollars away from Bitcoin. According to a CoinShares report released on Monday, Bitcoin lost $2.8 million in mid-August. Ethereum received only $3.2 million from crypto investors, whereas Solana gained $7 million.
However, the growing popularity of NFTs and smart contracts gives programmable blockchain platforms such as Ethereum and Solana a promising market future. Although Ethereum has the advantage of being the first, Solana may prove to be faster and more efficient.
As with any investment, a varied portfolio that includes not just several trustworthy cryptocurrencies, but also equities, funds, and other assets is a wiser choice than investing all of your money into one asset.
So long as crypto keeps growing, there may be opportunities for holders of Ethereum, Solana, Bitcoin, Cardano, and other cryptocurrencies to gain. However, because cryptocurrencies are highly volatile, consider them as long-term investments and be aware of your own risk tolerance. Don’t invest more than you’re willing to lose.